The constant desire of young people to organize a bright and lavish wedding against the backdrop of the high cost of all its components prompts future spouses to apply to the bank for financial support.
Looking at the structure of life in various countries, it is possible to state strongly that living on credit is more of an accepted practice, and taking a loan at a bank, even for a wedding, is not such an exception. In South Africa, weddings often change from a nice tradition to an exhibition competition. To assert themselves, newlyweds, and sometimes their parents, willingly go into debt to lenders that offer wedding loans. Most often, young people hope to repay the debt with the money they have been given as presents, but not always with the same expectations as reality, and some need to bear the burden of a wedding loan even after a divorce.
So, should we take out a loan for the wedding or should we give up on this idea?
Is that a bad investment?
From an economic point of view, it is necessary to evaluate any expenditure from the perspective of investment. When money is invested in luxurious weddings, financiers, analysts, and even bankers themselves recognize that these financial investments are illiquid and unprofitable. Thus, comments of many couples that they invest money in «emotions» and «future happiness», sound a bit strange from the beginning.
Economists insist that a young family’s financial investment should be long-term in the first place, and risk-free in the second. The wedding loan does not meet any of these criteria. That is, having invested the borrowed money in the celebration of the wedding celebration, future newlyweds risk not only «not paying back» expenses, but also «going into minus» not only in the financial sphere but also spoiling the internal family relations against the background of irritation from debt obligations to the bank.
Think of rationality and alternatives
One thing is when newlyweds are short of a small sum to pursue any of their dreams of marriage. For example, everything is already booked and paid for, but the perfect celebration requires some additional details. Then the wedding loans bad credit South Africa, even from microfinance organizations, so that these «additional details» do not ruin the general impression of the holiday. Or, if the amount of money required is not very big, you can issue a credit card with a comfortable credit limit.
Another thing is when young people plan the whole wedding on credit. Experts say it’s not a rational decision to borrow money for a wedding.
According to statistical data, every third marriage falls apart, not «living» longer than three years. Due to this many couples pay a loan for the wedding for a few more years even after a divorce.
Will it pay off?
You cannot count on the money gifted. As a rule, such a «business plan» of future newlyweds is doomed to failure. Verified by the years: gifts only pay off (and not always) the wedding, but there may be other expenses. For example, the interest that has already «run-up» during the preparation for the celebration, and this is especially true to wedding loans for bad credit taken at not beneficial conditions (because bad credit loans are always such).
Therefore, the advice of the newlyweds: do not count that the «wedding credit» can be paid off by the money given by guests.
The pros of wedding loans:
- The resource to realize the celebration of your dream;
- Funds to spend the honeymoon in almost any country in the world;
- There is an opportunity to pay attention to all details: from creative invitations to individual gifts to guests as a token of gratitude for attending the event;
- A chance to celebrate at least two days;
- Budget-free choice of restaurant, photographer, video operator, outfit, etc.;
- Use of fireworks, fireworks, and ordering an incredible wedding cake.
Cons of the wedding loans:
- Family life begins with debts;
- The debt burden will limit the spouses’ expenses in the future;
- The risk of not returning the debt in time due to the loss of employment.
As you can see, the idea of wedding loans South Africa has quite significant «pros» and «cons». The important thing is that at the end of the honeymoon, you do not have to regret your commitment. A good option is a compromise between one’s desires and material possibilities. For example, newlyweds can celebrate in a rather narrow circle of friends and relatives and on the same day, or at dawn, to fly abroad with the saved money.
The simplest and most efficient way to get the wedding loans is to book a consumer loan in cash or a credit card in a bank. A credit card will make it possible to avoid unnecessary spending allowing to use exactly the amount of money needed, and interest will have to be paid only for the time of the actual use of the money.