Make the dream wedding possible with online loans
Wedding location, wedding dress, honeymoon – a wedding can be expensive. Not all bridal couples manage to save up the necessary money in advance. If the budget for the dream wedding is not enough, a loan can help. In this article you will learn what you should consider.
Finance the wedding with an online loan
The wedding day should be the most beautiful day in the life of the future spouses. Therefore, it is all too understandable that many couples wish to have a magnificent wedding celebration. However, special wishes often cost a lot of money.
Location
Wedding table, invitations, flower arrangements, wedding dress, wedding rings, photographer and much more – the list of wedding expenses is long.
And the wedding couple’s savings are not always sufficient to finance the expenses themselves. But this does not necessarily mean that they have to give up their dream of a glamorous wedding. A loan can help finance the dream wedding despite the lack of equity.
What to pay attention to when financing the wedding?
Are you planning to get married soon and have decided to finance your wedding with a loan? In this case, it is advisable to first compare different credit offers. Afterwards you can
Apply for your desired loan directly online and save
a lot of money this way.
1. estimate costs and check financing requirements
Even before you decide to take out a loan, however, you should consider how much money you actually need so as not to take out too large a loan amount. In order to correctly estimate the costs for the individual items, it is helpful to obtain cost estimates and price information.
It is important to clarify not only how high the costs will be in detail, but also who will bear them. It is possible that relatives and friends will take over individual activities such as providing the wedding car, bridal styling, baking the wedding cake or catering. Any assistance helps to reduce one’s costs and therefore the amount of credit to be taken out.
Finally, the actual financing requirement is the difference between the costs and the available funds. In addition to your own savings, this also includes possible cash contributions from relatives, friends and parents.
2. choose form of financing
Many couples are willing to take out a loan for their big day. The amount is as individual as the wedding itself. There are various forms of credit to choose from, including the classic installment loan, the short-term loan, the P2P loan or the overdraft facility. Depending on the financial institution, the individual conditions can vary greatly.
Overdraft facility
Many couples resort to the overdraft facility to finance their wedding – at least in part – with it. At first glance, this seems straightforward. The Dispo is available to any consumer who has a monthly income and no negative Schufa entries. If desired, the house bank will provide a credit line in the amount of three times the monthly income on the checking account. The overdraft facility offers these advantages:
– The overdraft facility takes effect when the credit limit on the bank account is drawn down.
– The bank customer can flexibly utilize the credit line at any time without a separate credit application.
– There is no fixed loan term.
– The amount of money used can be repaid as a total sum or in any installments.
– The account holder pays overdraft interest for the credit limit used. These are around ten percent per year.
– If the credit limit is exceeded, the Bank shall charge in addition
Overdraft interest
. These amount to an average of 12 percent per year.
The overdraft facility can be a help in case of financial bottlenecks, for example, if your budget for the purchase of the
Wedding rings
is not sufficient. However, you should not finance the entire wedding with this because of the high overdraft interest rates. Only use the overdraft facility if you can repay the money in full within a few weeks.
P2P credit
Another common form of financing is P2P lending. Here you have the opportunity to borrow larger sums of money of up to 25,000 euros from private individuals. Various online platforms are available for this purpose, bringing together loan seekers and private investors. Anyone who is interested in a loan can submit a free loan application and present their loan proposal there. The terms of the loans usually range from 12 months to five years.
Overall, the cost of credit is higher than for traditional installment loans, as the platforms charge fees for their brokerage services. Additionally, you will need to invest time in presenting your loan proposal and contacting potential lenders.
Installment loan
The classic installment loan is the form of financing that is best suited for financing a wedding. It is convincing in terms of its conditions and also flexibility in terms of the term and the amount of the loan. The effective interest rate is usually significantly lower than that of other loans. Repayment is clear and easy to plan.
The key points of the installment loan are:
– Credit amounts from 1,000 euros
– Terms between 12 months and ten years
– Annual percentage rate of charge starting at around 0.7 percent
– Repayment in constant monthly installments
– Unscheduled repayments possible free of charge depending on offer
– Schufa information required
– second borrower increases the chances of obtaining a loan as well as better conditions
The installment loan without earmarking can be applied for at branch banks as well as at direct and Internet banks. An online application offers several advantages: For one thing, processing is faster than applying for a loan at your local or branch bank, since you can do it from the comfort of your own home. On the other hand, direct and online banks often offer their loans at more favorable terms.
The amount of interest depends on various factors. The creditworthiness of the borrower plays a major role. The worse this is, the greater the risk of default for the bank. That is why credit institutions charge higher interest rates for a poorer credit rating. If both partners sign the loan agreement, i.e. there is a second borrower, this may affect the loan terms. From the bank’s point of view, the risk that you will not be able to repay the loan is then lower. It is important that both applicants have their own income.
Furthermore, the
Interest
on the term of the loan and the loan amount. In most cases, banks also charge higher interest rates for higher loan amounts. The same applies to loans with longer credit periods. When you take out a loan, you should therefore think carefully in advance about how long you want to pay off your loan. But beware: a shorter term also means a higher monthly charge. You should include this in your consideration.
More tips for financing the wedding
As already mentioned, you can ask relatives and friends for financial support in the form of monetary gifts. If you don’t need any new items for the household, this is a great way to supplement your budget. In addition, there are some other cost-saving measures that will reduce the cost of your wedding.
1. looking for helping hands in the circle of family and friends
It is not always necessary to hire external service providers for various activities. Possibly, there is a talented amateur photographer in your own environment, who will take care of the shots on the day of the wedding. Maybe you can find a hairdresser in the family or students who would like to earn some extra money as a waiter in the evening?
2. rent wedding dress instead of buy
Wedding dresses don’t have to cost a fortune either. From time to time the stores offer the clothes at reduced prices. It’s worth checking back here regularly or browsing the Internet for deals. Alternatively, today it is possible to rent wedding dresses. A lot of money can be saved here as well.
3. secondhand flowers
A bouquet of flowers is not withered the next day. And so, for example, even in the case of a wedding, there is often the possibility to take the flower arrangements of the wedding, which took place in the booked location the day before. The bride and groom agree this individually with each other and then share the price of the flowers.
4. do not party on the weekend
Many organizers and catering companies offer significantly lower prices during the week. Those who want to celebrate their wedding on the weekend often have to dig deeper into their pockets. However, if you start planning your wedding reception early enough, finding a date during the week should not be a problem.
Conclusion: An installment loan can finance the dream wedding
A marriage quickly adds up to 2,000 to 20,000 euros, depending on how extensive the dream wedding turns out to be and where it is to take place. Important cost items include the wedding dress, the wedding suit, invitations, the wedding rings, the photographer, the flower arrangements, and the wedding dinner. All of this comes at a cost, and more than most couples can afford. Last but not least, there’s the honeymoon on the agenda, which finally blows the budget.
One’s savings are not always sufficient for all items. In this case, taking out a loan may make sense. This serves as a quick financing aid that gives you the opportunity to make your wedding a reality after all. Before doing so, however, it is important to consider where costs can be saved in order to keep the loan amount as low as possible. Besides monetary gifts, which are commonplace at weddings, there are many other ways to save money.
Costs can also be saved on borrowing. A non-binding loan comparison on the Internet is recommended to compare different offers. The selection of loan offers is significantly greater on the Internet than at house or branch banks. In addition, online loans are usually offered at more favorable terms. Once you have found a suitable loan offer, you can conclude your loan directly online. Once all documents are submitted and all requirements are met, the bank will provide you with the selected amount of money within a few days.
