Financing the Big Bill for the Big Day
June is again upon us, and with it comes the beginning of the wedding season. The average amount of money spent on weddings has been increasing over the past several years, and CNNMoney.com reports that it has now reached $27,852.
If you’re planning a wedding, then you know how easy it is to rack up a bill of this size. But you can’t spend all your time worrying about the money; you also have other things to think about - the invitations, the menu, the flowers… and the list goes on and on. So why don’t you go work out those details for your perfect wedding, and let us take some of the stress off by helping you with the money issues.
Here are some of the options you have for financing your dream wedding:
• Some banks offer unsecured loans for weddings and other special events, so that you have a certain amount of money to spend on virtually everything related to your event. This can be helpful because there are certain companies that only accept cash and checks. These loans make it easy to access your available funds whenever you need them.
• Another way to borrow in order to finance your wedding is through the use of credit cards. Look for cards that offer rewards, such as cash back and points that can be redeemed for trips and merchandise. Also, look for a credit card with an introductory annual percentage rate (APR) of 0%. Keep in mind that even though credit cards are an easy way to finance some of the wedding cost, you should pay them off as soon as possible, since the mortgage rates on them are higher than on most other loans.
• Many factors, such as people wishing to further their education, women’s heightened focus on their professions, and a rise in the number of couples living together before getting married, have led to an increase in the average age of brides- and grooms-to-be. Therefore, it is more likely that a couple, or at least one of the two, will own their own home by the time they get married. Another option, then, for couples in this situation is to open a home equity loan or home equity line of credit. These usually have a lower interest rate than do other loans and credit cards, and that interest can be deducted from your income tax.
When it comes to your short-term goal of planning a beautiful wedding, these are the three best options to consider. But when it comes to your long-term financial goals, do not forget about the importance of discussing your spending and saving habits with your partner. Money is cited by relationship experts as the No. 1 problem newlywed couples face, and it is often the source of broken relationships (Source: Daily News, 2-2-07). Therefore, it is imperative to get these matters out into the open in order to develop a financial system that will work for both of you, so that your marriage will not suffer later.
But, in the meantime, you have a wedding to plan. So go figure out whether you’re going to seat your grandfather next to crazy Aunt Millie, what the ratio is of chicken to steak, and what kind of blender you want on your wedding registry.
Source: Informa Research Services