Wedding woe: Should I get a loan?

Last updated 10:39 19/11/2012

Happy Monday, guys and girls! 

Today's wedding woe will get a few people stirred up, I reckon. But before anyone comments, I think they should breathe in and out deeply a bit, and actually have a real good think about this specific situation. People are so funny (not ha-ha, more like "RARGH@*$Y#(&%^(&#%^) about money - I worked this out when I spent a year blogging about personal finances - so I think a bit of calm is needed. Here we go:

Hey Greer, 

I LOOOOVEEE reading your blog and look forward to a new post each week to see what help and advice you are offering to all us brides out there.

My wedding woe or just question I guess (sorry if this has already been covered) is that I am getting married in about 3 months and after looking at the budget and looking at the savings I have realised that we are short on savings but still have quite a few things left we need to pay for. Loan

I can't for the life of me figure out how we will be able to save extra money to pay for them. The only solution we seem to have currently is getting a loan of around $3000.00.

My FH and I really don't want to get a loan but at the rate that time is flying currently I know we will not be able to save that amount in time for the wedding. 

Our wedding isn't anything to big and I have cut corners on costs in heaps of different areas to keep the overall total down while still making sure it will be a memorable night and everyone will leave well fed and entertained. 

I have recently had many a sleepless night, mood swings, and arguments with FH trying to think of ways to save or get around it without having to get a loan and the more I think about it the more it makes me think that I am going to have to cancel the wedding (drastic I know and I wouldn't actually do it but I think it's the panicking bride inside me saying it). 

I guess what I want to know is what do you and other readers think about getting a smallish loan to pay towards/top up wedding savings so everything can be paid for in advance? Any help, advice or ANYTHING would be greatly appreciated because currently I don't know what I should do!!

Regards,

Panicking Bride 

***

My advice? Get the loan.

Now I say that as someone who was previously drowning in a sea of personal, interest-bearing debt (More than $10,000 at one stage, and growing) and who now doesn't own a credit card and almost refuses to buy things unless they're on sale or if I'm getting a deal.

But I also say this as someone who knows a lot of people will tell you not to get the loan. "Don't get married if you can't afford it," they'll bark. "Cut more corners," they'll scream.

Um, actually, I think you've done really well. I have even had the EXACT same thoughts as you (i.e. cancelling the wedding) because I too have had sleepless nights wondering how we were going to pay the bills, thinking of all the figures, and trying to work out where we change things to save more money.

And the one thing people tell you is no matter how good your budgeting is, it will always cost you more than you think. A $3000 loan, to me, is not "huge". Providing you are trying to make it as affordable as possible and the $3000 loan isn't for some monogrammed serviettes or something, then I reckon go for it. 

If your wedding was costing $80,000 and you loaned against the entire amount, then my advice would be a lot different. And a lot less polite.

But I think $3000 is fine. The main thing is you have to make a plan.

Let's do the sums.

Say you borrow $3000 from the bank at an interest rate of, say, 18 per cent.

If you pay it back $200 a fortnight, you will have paid it off in eight months and paid a total of $178 in interest.

Yes, that's $178 extra. HOWEVER that is, to me, a cheap price to pay for a good night's sleep, peace of mind, and the ability to enjoy your night without worrying about the bills rolling in.

There is no price you can put on sanity and having money troubles is one of the worst feelings; it just hangs over you like a black cloud and no matter how awesome other things are, if you have the lingering money worry, nothing is ever right.

What do you think - should panicking bride get a small loan so she can pay everything off? Any other suggestions?

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