When does a wedding loan make sense?
Yes, I do – those who say these words have not only decided for marriage, but often also for a large wedding party with all the trimmings. With all the euphoria: The most beautiful day in life is often not exactly cheap. In front of friends and relatives, many newlyweds don’t want to be ripped off. Although marriages are still sparing on a dollarpean comparison: In y, an average of 6,500 dollars is spent on the wedding celebration. In the country it is a proud 27,000 dollars. This was the result of a survey by the cashback portal shoop.de.
But where do you get it from if the money isn’t available after the application? The fathers used to be asked to checkout, but that’s history. Modern bridal couples pay the costs together. If your own savings are not enough, there are basically two different solutions:
- Relatives ask: Even if the bride’s father is no longer officially held responsible, he may be willing to contribute something voluntarily.
- The wedding loan: With a bank loan, newlyweds remain independent and can fill the financial gaps for a wedding party.
Wedding loan tips: Special repayments and several borrowers
In any case, it is important to get good conditions for the wedding loan and to focus on repayment as quickly as possible so that the young marriage is not unduly burdened with debts.
Special repayment: The turbo for the wedding loan
Make sure that the wedding loan enables you to make special repayments free of charge. Not all loans automatically have this extra on board. With special repayments free of charge, you can include special payments in the loan without having to pay fees to the bank. A faster repayment immediately lowers interest costs and shortens the remaining term of the loan. In this way, unforeseen special income such as salary increases or bonuses can be used meaningfully. If the loan is repaid in full early, the bank may, by the way, charge a maximum of one percent of the remaining debt as prepayment penalty.
Lower interest rates with multiple borrowers
Before you take out the wedding loan, think carefully who exactly you want to be a borrower. Often, the person who has the higher income takes out the loan. But a single borrower can have one specific disadvantage: higher interest rates. The bank is happy when several borrowers are willing to shoulder the remaining debt of the wedding loan, because that reduces the financing risk. Therefore, it usually grants lower interest rates for several borrowers. Even if the second borrower earns much less than the first.
Do not use wedding credit for intentions to buy a house
Where there is a wedding, there is often also construction finance: Many young couples play with the idea of buying their own home. A previously concluded wedding loan can be a hindrance here: the more loans you have on your watch before you have finished building finance, the worse. Even if you use these loans well and regularly – your creditworthiness drops in the eyes of the bank, with which you now want to finance a house or a condominium. That doesn’t mean that you don’t get a real estate loan at all. In concrete terms, however, it can mean that you will be offered lower loan amounts and lower interest rates for mortgage lending. You can then afford less house and have to pay higher installments each month than if you start building construction “without any debits”. If you want to buy a home after the wedding, you should consider alternative sources of money rather than a loan for the wedding. By the way, it is also not possible to help finance the wedding directly through the building finance. Because banks strictly regulate what the money from construction finance is spent for and usually don’t give an okay for it.