Now that you're engaged, it's time to start planning the wedding. Few couples want to put off this monumental occasion, but many also don't have the money to pay for it up front. You may have several options to obtain the money needed, but which should you choose? Here are the pros and cons of four of the most likely methods to find the cash to pay for your big day.
A personal loan is an excellent option for a big event such as a wedding. Why? You get a set amount of cash upfront and with stable payments over as long as several years. It makes budgeting easier and helps you plan as a couple. You also won't find yourself overspending because a loan isn't revolving credit. The downside is that the rate of interest may be higher than some other options. And if you're not great at budgeting, some couples could find the limitations uncomfortable.
Many people turn to a credit card to pay for a big wedding. It's easy to do, since most people already have access to significant lines of credit. And the credit card is convenient and safe for making wedding purchases. However, credit cards often come with higher interest rates than personal loans as well as having over-limit fees and annual fees. And you may find it too easy to go over your budget with such an easy line of credit.
Can you get the funds from parents or grandparents? If so, you have access to an interest-free loan with easy payment terms and no paperwork. Your parents also gets to feel like they've been supportive of the happy couple. But, be wary of taking a loan from family or friends. While it's cheaper, it could cause lasting damage to your relationship if you're unable to make a payment or if anyone's financial situation changes.
If you're particularly averse to getting a loan, you may be able to sell some assets in order to fund the wedding. It's easy to get smaller loans from pawning old jewelry or a motorcycle you never use. For larger bills, you may be able to get significant amounts of money by selling a car, a valuable collection, or a piece of artwork or antiques. Selling assets provides interest-free money upfront, but you may not be able to get your stuff back if you have second thoughts.
Which of these methods works best for you and your fiance? No matter if you seek convenience, inexpensive loans, or the simplest transaction, you can find the right way to fund a wedding that will set your new family off on the right foot.