The ancient Chinese sure knew what they were talking about, when they decided that “May you live in interesting times ought to be a curse”. Indeed, ever since the onset of the recession, the whole world has been living in interesting times-and many would rush to say this isn’t exactly the best time to be getting married. According to the Westpac/Melbourne Institute Consumer Sentiment Index for June, consumer confidence isn’t skyrocketing, even if the Reserve Bank of Australia lowered the cash rate by 25 basis points in June. Consumers, newsmakers indicate, are still worried that the worldwide economy doesn’t look like it’s getting any better and are worried significant improvement is nowhere on the horizon.
If, on the other hand, love and thought of together forever have recently entered your existence, the world economy might take a back seat to your personal interest, and understandably so. However, what can one do when one wants to plan a wedding and finds oneself strapped for cash? The solution, which comes to us from personal finance service providers as BankWest.com.au (http://www.bankwest.com.au/personal/personal-loans/personal-loans-overview) is a personal loan for a wedding. Is this the best time to apply for a loan? Perhaps not, your head will say; but then, your heart will tell you you want the most memorable day of your life to be truly memorable.
As is the case with most other loans, applying for a wedding loan starts off with deciding between a variable and a fixed rate loan. The good part about fixed rate loans is that you will know beforehand exactly what your repayments are and how long the fixed period of repayment lasts. However, if you believe you stand a chance at repaying your loan faster than initially planned, a variable loan might be the route for you to go down, since they allow you to make extra repayments at no cost. It’s all a matter of outlook on the future, and on deciding between the comfort and safety of predictability, versus the benefit of saving on the costs of interest.
Once you’ve decided what type of loan you want, you will, of course, be required to check your eligibility for either and any type of loan. Essentially, there is a minimum credit threshold which you must meet. The next decision you need to make refers to choosing between a secured and an unsecured loan-you can always secure yours with an asset you own. Of late, a popular misconception on secured loans has arisen, popularly deeming them unsafe, since you run the risk of losing said asset, which you initially use as security. In earnest, since most wedding loans involve small amounts, upward of $5,000-$10,000, you might not need to go through the hassle of using security. The main advantage of secured loans, aside from their generally lower rates, are the ability to take out a larger amount of cash. If you’re planning on using the money to cover for all expenses incurred during and after the wedding, consider this. If not, you’d be better advised to avoid the hassle.
To conclude, the age of personal loans is far from over, in spite of the rather prevalent pessimism spreading at population level. Certain special occasions require a bit of financial assistance-and why skimp, when all you need to do in order to enjoy a truly momentous wedding is to make sure you repay the lender in a timely manner?