When it comes to wedding, everybody has a different way to plan theirs. But all these plans have one thing in common, the cost. Dream weddings come with a price, and if you’re willing to pay this price, you need to evaluate your finances before making this dream come true.
There has been a hike in cost of living and the cost of weddings hasn’t been unaffected by this rise. The speculations from different websites show that an average wedding budget malaysia is as below:
- Gifts: 2-3%
- Ceremony: 2-3%
- Wedding rings: 2-3%
- Transportation/parking: 2-3%
- Photography and videography: 10-12%
- Music and entertainment: 8-12%
- Attire: 8-10%
- Flowers: 8-10%
- Stationery: 2-3%
- Miscellaneous: 8%
This shows that almost 48-50% of the wedding budget is dedicated to the wedding reception. This propels young couples to apply for a wedding loan. But it is proving to be one of the worst options you can go for in order to get the wedding ceremony of your dreams? Let’s find out why.
Reasons why taking a wedding loan is the worst decision you could make
- One of the major reasons why wedding loan is the worst option to go for in order to have the wedding of your dreams is because it burdens you with a new line of debt just when you are starting a new chapter in your life. If you already have a loan and you decide to take another loan for your wedding, you will eventually find yourself under a huge pile of debt. Also, maintaining repayments for multiple loan lines can be hard to manage and it can cause your credit score to drop.
- When you choose to opt for a wedding loan and you already have a line of loan or a credit card with a low available credit limit, your chances of getting the loan amount on a low interest rate drop significantly.
- Taking a wedlow interest ratelow interest ratelow interest ratelow interest ratelow interest rateding loan can also affect your life plans like expanding your family and long-term financial plans like buying a house or a car.
- Also, an unplanned wedding loan can also deprive you of any emergency funds as it’s been noticed that people tend to spend more at weddings and during their honeymoon. This can affect your savings too.
How to save yourself from a wedding loan debt
You can consider the following before you decide to take a loan for your wedding:
- Make a plan: The most basic and most important thing to do in order to stay away from a wedding loan debt is to plan earlier. Unplanned loans can rupture your finances badly. Instead of going with a last-minute decision, plan in advance. In order to avoid getting burdened under a debt, you can plan your finances and start focussing on your savings. There are many ways you can enhance your savings. One of the most popular one amongst these options is a fixed deposit. An FD is one of the most trusted and safe investment option that can help you in case of emergencies and plans like a wedding or vacations.
- Research and explore more wedding options: Another thing you can do in order to save yourself from a wedding loan debt is by researching and exploring more wedding plans and packages. There are many companies and sites that provide you with a range of wedding packages to choose from. You can choose the one that fits right in your budget instead of the one that can force you to go for a wedding loan.
- Reduce wedding cost by participating in the preparations: You can also save a lot if you actively participate in the wedding preparations and try to do some parts by yourself. This includes decoration, malay wedding clipart and creating handmade items. You can also cut wedding costs by sending out online invitations instead of hard copy invites. This can help you save money on printing.
- Making full use of your financial products: You can also save a lot if you use your financial products like credit cards wisely in a pre-planned manner. You can use your shopping or cashback credit card for wedding shopping in order to cut down on expenses. Your travel credit card can also serve as a helping hand when you plan your honeymoon vacation. You could also convert larger retail purchases into smaller affordable instalments using 0% instalment payment plans.
From the above discussion, we see that a wedding loan may not always be the best option to finance a wedding. It brings to the table, its own set of disadvantages. A wedding loan can offer you happiness and peace of mind for a day or two, but it can put you under immense financial pressure in the long run. if a wedding loan is absolutely required, then make sure you’re at least opting for a loan amount that can easily be repaid and a tenure which allows you to clear it off as quickly as possible.