Financing Your Wedding
The cost of weddings has become substantial. Few people can afford to pay for their daughter’s wedding without drawing equity from their home in the form of a second mortgage or a secured loan.
The meal alone can cost £10,000, the dress £10,000, and the flowers £2,000. It is difficult to think of choosing between being in debt for another five to ten years, and supplying your daughter with the wedding of her dreams.
There are affordable ways to release equity from the home without putting your long term investments at risk. The first step is to improve your credit rating. This can be done by supplementing your income, paying bills before the due date, and reducing debt. All of these things will work toward improving your credit rating.
A good credit rating can reduce the amount of interest paid by one or two points, saving several thousand pounds over a five or ten year secured loan.
One major mistake is releasing the equity from your home in the form of a mortgage, and then purchasing several thousands of pounds of extras on your credit card.
The solution is a solid budget. Everyone needs to sit down and outline what needs to be purchased, and how much will be spent. Then, stick to the budget.
Wedding planners are full of ideas, each one an expensive budget breaker. That is why it is vital to visit the wedding planner, and start dress shopping, before applying for the loan.