Taking Out Loans for Your Wedding – Reasons Why It’s Worth It

Weddings are always a special occasion. It’s not every day you get to say “I do” and commit your whole being—mind, body, soul, ’til death do you part—to the most important person you’ve ever met in your life. A wedding is a time of celebration of love. It is a time of dreaming of building a beautiful future together.

Making wedding plans is exciting. There are so many things to look forward to. But wedding costs can add up pretty quickly, especially in a place like Singapore. A Singapore wedding typically goes for $40,000 leading to couples resorting to loans to finance their dream wedding.

This simple guide discusses how loans can impact wedding planning in the Lion City. So before you and your partner exchange vows, let’s quickly talk about wedding loans.

Spreading the Cost vs. Long-Term Debt

Many couples consider taking out loans for their wedding for several reasons. However, partners must be wise before borrowing money for their wedding. Weddings are a great way to start forever, but a huge negative on your finances at the beginning of your marriage isn’t ideal.

Here are a few instances when borrowing money from banks or local money lenders for your wedding makes the most sense:

Spreading the Cost

Borrowing money allows you to have your dream wedding without shelling out a large amount upfront.

Consolidating Debt

Placing all your debts into a single loan makes for easier debt management, giving you some financial relief as you enter marriage.

Improving Credit Score

If you can pay your loan on time, your creditworthiness will improve. That means better chances of getting approved for bigger loans and better interest rates – both of which will be helpful in future familial expenses. This includes homeownership and children’s education.

Considering the Long Run

On the other hand, borrowing money for a wedding might not be a good idea under the following scenarios:

High-Interest Rates

When taking out loans, be mindful of interest rates because they will significantly impact your finances for the loan’s entire duration.

Strained Finances

If you’re already struggling money-wise and can’t take on more debt, then don’t. Rather than enjoying the next chapter of your life with your spouse, you might end up regretting it after the ceremony.

Unrealistic Expectations

Everyone looks forward to a memorable wedding, but it doesn’t have to be lavish that you cannot afford it in the long run. Be honest with yourself and only borrow what you can afford to repay.

Creating Lasting Memories on a Budget

All that said, a wedding is the door that leads to your happily-ever-after with your partner. To ensure you start your marriage right, you should prepare for the wedding you can afford.

Here are a few tips to help you plan for your wedding without the unnecessary financial strain:

Tip 1: Budgeting Basics

Set a realistic budget and financial limitations for all your wedding expenses. Weddings are special, but it is far more crucial to prepare your finances for marriage.

Tip 2: Prioritize What Matters

List down the non-negotiables like the venue, catering, and photography services. Create another list of wants and see where you and your partner can compromise without breaking the bank. Prioritize the essentials and don’t get distracted by the others.

Tip 3: Alternative Venues and Dates

If your primary choice is not within your budget, consider other venues. Try parks, restaurants, and historical sites. Check out off-peak dates as well, as they have more affordable rates for venues and other wedding vendors.

Tip 4: DIY Magic

If you or your partner—or some of your friends—are creative, you may want to consider DIY decors, centerpieces, invitations, and other similar things. Doing this allows you to cut costs significantly while building fun memories with those special to you.

Tip 5: Family and Friends

Ask for help from family and friends about what they can contribute without breaking your wedding plans or your budget. These people will be happy to make your day more meaningful.

Wrapping It Up

Weddings are beautiful, but starting married life with debt isn’t. Focus on what matters most—your future together. Plan a beautiful wedding without breaking the bank, so you can focus on building a happy marriage.