Wedding Loan or Credit Card? Which One is Better for Covering the Wedding Expenses?
Last Updated : July 9, 2016, 5:14 a.m.
As per a latest survey report an average cost of wedding in India is 25 lakh-30 lakh, and more than 50% of the couples stating that they expected to go over their initial budget. Not only this, the survey also revealed that nearly 50%-60% of the couples would prefer to borrow the money for their wedding rather than compromising on their D-Day plans. In fact, the most surprising fact here is that when it comes to paying for a wedding, it would not be wrong to say that credit cards or wedding loans both are preferred by people, and play a significant role in the spending. Now here comes a question which one is better? Which is the better option, and are there any alternatives? If yes, what are they?
A Wedding Loan
Well, a wedding loan in the form of personal loan is surely an option that you can consider to borrow a large sum of money, but the likelihood is that you won’t want to pay for your entire wedding this way.
A marriage loan allows you to pay in cash which ultimately helps you in getting a better deal when you pay for some highly expensive elements such as venue and car hire. Not only this, in fact this loan allows you to avoid more expensive credit agreements, in case you get an attractive rate of interest while at the same time spreading the cost.
Moreover, one of the best ways to avail the wedding loan is via comparing different lenders on various parameters. Yes, you should compare them on the basis of interest rate, fee & charges and many more. In fact, to do the comparison online there are plenty of sites available that give you best results.
A Credit Card
When it comes to credit card , there is no denying on the fact that an interest free card is definitely a cost-effective way of spreading the expenses of your D-Day as long as you would be able to pay off the debt before 0% period runs out. More to the point, you might be able to transfer the debt to your balance transfer credit card, but need to give away a fee for that.
However, one of the biggest advantages associated with credit cards is the fact that they allow you to make an instant purchase without using the cash. If you don’t have cash with you to fulfill the wedding expenses, with the help of a credit card, you can pay for the expenses any time.
Now, let’s take a look below to know about the best alternatives:
An Overdraft
Well, an overdraft facility could be helpful in the run up to the big day. You just need to ensure that yours should be planned, and you are not getting charged with any sort of fee.
Family
You can also have the option of taking the funds from your family. You can take the funds from them just like a loan, and will repay the amount in small EMIs. Here, you have a benefit as you don’t have to pay the interest, if you share good terms with them. So, getting funds from family is another financial assistance that you can have.
Budget & Save
Saving is no doubt a best answer to all your problems. Once you start doing the savings, you don’t have to face any problem. All you can do to control your spending habits is to set a budget for everything. If you are aware with your wedding date earlier, you should start your savings by then so as to avoid the last minute wedding expenses. And, for that you need a proper planning and budgeting so that you can save smartly for the most special day of your life.