Are wedding loans a good idea: pros and cons
16th April 2024
Planning your dream wedding is exciting, but the costs can add up quickly. With the average UK wedding reaching £20,775 in 2024 as reported by London-based wedding planner Bridebook, effective budgeting is crucial.
Oakbrook Loans can help you finance your wedding with a loan, but there are other things you can consider too. Let’s take a look.
How do wedding loans work?
You could use our wedding loans to cover various wedding expenses including the costs of the venue, catering, clothes, rings and even the honeymoon.
Wedding loans from Oakbrook Loans are unsecured and come with flexible repayment terms ranging from 12 to 60 months as well as a personalised interest rate.
Navigating wedding expenses: exploring wedding loans and other options
Pros of wedding loans
1. Planning a wedding involves a lot of upfront costs. When booking a wedding venue, dress, or catering service, each supplier may request a deposit. These different costs can quickly add up. If you don’t have adequate funds reserved, a wedding loan could be a solution to cover these expenses.
2. With Oakbrook Loans you get the money paid directly into your bank account on the same day once you are approved.
3. Wedding loans have a fixed APR. You can compare interest rates offered with other financing options like credit cards and make the most cost-effective borrowing decision. However, loans are usually a better option for planned, large expenses like weddings.
4. You get flexibility in selecting the repayment period, ranging from 12 to 60 months.
5. Wedding loans are unsecured in nature which means no collateral is required to get a loan.
When taking a wedding loan, you should be aware that:
• You’ll pay interest on your loan so your wedding will cost you more than if you paid with savings
• If you miss repayments, you’ll damage your credit rating and borrowing may be more difficult in the future
Alternatives to wedding loans
1. Scale down and reduce extra costs: You could also adopt a reduce, reuse, recycle mindset. ‘Reduce’ your guest list or needs – maybe simpler food and drink options or a venue that doesn't need extra rentals. ‘Reuse’ items you or your friends/family already have. After the big day, think about reselling or repurposing things. If you're into DIY, having a printer can be handy for things like save-the-dates and invites.
2. Ask friends and family to help out: Utilise the hidden talents in your network. You can ask for help with things like photography, catering, or baking, possibly at discounted rates or as a gift to you. You can even get creative with invitations, decorations, and floral arrangements by involving your friends.
3. Ask for help: Politely ask loved ones if they're willing to contribute financially, perhaps through your wedding registry.
4. Dip into savings: The easiest option is to finance the wedding expenses yourself. If you have an amount saved up, consider using it for your special day.
5. Wait for the perfect time: You can have a long engagement, take the time to budget for your wedding and save up for the things you want.
Wedding Loan Calculator
months
${ loanTerm } monthly repayments of
£${ monthlyRepaymentAmount | formatCurrency }
Total repayable
£${ totalRepayableAmount | formatCurrency }
Are wedding loans a good idea for you?
If you are confident in your ability to manage repayments and are aware of the total costs, you can consider loans for weddings. Taking out a personal loan offers flexibility, allowing you to borrow what you need and repay it over an agreed period, covering expenses like venue bookings, dresses, and catering.
However, if the repayment plan doesn’t align with your overall financial plan and adds unnecessary stress, it might be worth reconsidering.
Meanwhile, it’s always a good idea to discuss finances with your partner before taking on the commitment of a wedding loan.
How to apply for a wedding loan
If you want to apply for a wedding loan, Oakbrook Loans is an option you could consider. Here is how you apply:
- Use our wedding loans calculator and enter your ideal loan repayment period and total amount to find out if the monthly repayments work for you.
- Check your eligibility by answering some questions. If we can offer you a wedding loan, you’ll see the exact monthly repayment plan before deciding whether to proceed.
- Once approved, the money is disbursed quickly, usually within a few hours.
You can borrow between £1,000 - £20,000 for your special day. The lending process is transparent, with no hidden fees. Plus, you get an easy-to-use online account to manage payments.
Final thoughts
The key takeaway is that loans for weddings can be a viable solution, but only if you approach them with careful consideration and a solid financial strategy. Love and commitment make a strong marriage. And a wedding loan, when used properly, can help start that marriage happily.