Newly married couples often require loans for various reasons. Some might take it, as they want to shift to a new house, while others might take it for a car. There are also some couples that take Personal Loans when they wish to expand the family and are planning to have a baby.
Very often, loans come to the rescue of those who wish to fulfill some dreams instantly, but don’t have the money for the same available immediately. Loans give a good way of having a good present, by gradually clearing out the payments in the future.
However, it’s not always good to take loans, especially when the person is unsure of how his/her income is going to be over the next few years, or if there are some other major expenses planned, apart from the ones for which one is primarily taking the loan.
Here are some things to keep in mind.
Secured vs. Unsecured Loans
Secured loans are those in which the borrower needs to give something as ‘security’ to the lender, in order to get the loan. This security acts a good safeguarding and recovery source for the lender, in case the borrower is not able to pay back the loan on time. Usually, assets such as properties, cars, jewelry etc. are given as security in such loans.
Unsecured loans are the ones in which no such security is required. A person can get the loan without any hassle, provided he/she fits the eligibility criteria laid out by the lender.
Gauging The Situation
When a newly married couple is thinking of applying for a loan, they must first do some basic homework. They need to calculate how much will they be earning in the new few years, and keeping aside their estimated expenses, how much will they be left with. From that leftover money, they obviously need to dedicate some to savings, while some can go to loan repayment. An approximate figure of that loan repayment money needs to be known before applying for the loan. It helps in determining the loan period comfortable for the couple, and to know whether or not the rate of interest is manageable.
A husband can’t obviously ask his newly wedded wife to give her new jewelry as security, for any loan that they might want to take. Moreover, if the husband has been living in a joint family, he may not have many assets of his own. So what does one do in such a case? It is important to understand the kind of assets available with the couple, and see which one’s can be given as security. If nothing is available, then an Unsecured Loan makes more sense, though the pressure of the same may seem difficult to manage initially.
Newly married couples must know that whatever be the kind of loan they take, should not hinder with their personal goals. They might want to plan things at certain stages after the marriage, such as a baby, a bigger house etc. The stress of the loan should not be such that it complicates things.
About the Author: Andrew Hopes offers pay day loans services through his website paydayloan.org.uk. He is a financial adviser and has years of experience in the field of finance.