Do You Need a Wedding Loan?

A wedding, as you know, is expensive. Do you need a wedding loan?

This is something about which you should think long and hard.

The times when the bride's parents provided the entire wedding financing have in most cases gone away. The bride and groom usually have to pay some, if not all the expenses themselves.

No one recommends that you go into debt by using a loan. However, most couples have to either supplement any savings they have set aside for the wedding, if they have any savings at all.

The first thing to do is for you and your future spouse to get together and decide what kind of wedding you want and where you are willing to cut corners.

The next step is to set a budget. Make it realistic so you won't be disappointed. Here are some estimates based on national averages:

Wedding Attire	$2,710
Wedding Ceremony	$2,627
Wedding Favors & Gifts	$1,166
Wedding Flowers	$2,048
Wedding Jewelry	$2,148
Wedding Music	$991
Wedding Photography & Video	$3,836
Wedding Reception	$14,737
Wedding Stationary	$881
Wedding Transportation	$426

These vary depending on where the wedding is being celebrated. For instance, if you want a destination wedding in an exotic place, the costs will rise substantially.

On the other side, you can just go to a justice of the peace and celebrate with a nice dinner. This would be a much less expensive option.

When you are looking at your wedding financing options, look first at whether or not you can you pay for it, or part of it, as you go. When an invoice or deposit is due you pay for it then.

This is good if your wedding is months or even a year or more away.

Unfortunately, not many are in a position to be able to do this.

After you settle on what you want and have an idea of the costs, its time to decide how you are going to do your wedding financing.

Try not to get caught up too much in the wedding hype you will see in all the wedding magazines and ads. It can put you way off budget.

If you are going to use credit, decide what type best suites your needs.

If the purchases you have to make are relatively small, you can get a credit card that has both low interest and great benefits. Apply for the Merrill + Credit Card , this is a great low interest card with many outstanding benefits.

If the debt is going to be large it's time to consider a wedding loan. The interest on an unsecured loan (a wedding loan is usually unsecured) will be much less than that of a credit card. Let's say 10% to12% for a loan versus 21% or more using a credit card.

Here is another good reason to look at getting a wedding loan. If you have done your homework and know what your approximate costs are going to be, you can secure a loan for that amount or a little more for unexpected expenses and put yourself in a great bargaining position with the wedding vendors.

When they ask you for a deposit of 20% for example, because you have a wedding loan, you can offer them 25% or 30%, if they will lower their price or throw in something extra. Because you know how much money you have to spend, your negotiating power is increased.

Some advice, if you have a 401k retirement plan you will be told you can borrow against it, bad idea. Get the wedding loan and pay it back as soon as you can. Remember, it will more than likely be an unsecured loan; if you get loans secured by your 401k's remember they are secured by your retirement funds and can also cause some tax consequences if not handled properly.

Think it over carefully and you'll make the right choice. Have a wonderful wedding.

Whether or not you get a wedding loan you should consider wedding insurance. You are getting ready to spend a lot of money, unforeseen things happen, protect yourself.

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