Wedding loan rejected - how to improve?

enthusiasticsaver

immuno wrote: »

Sadly, my family won't even attend our wedding, so there's no need to show off. I simply want the experience for myself...I didn't realise that people only do it to show off. I've always been able to afford it, and then various unexpected things happened, and I suppose I can now wait a couple of years to save up...but I thought I could just get a loan and book my wedding and I'd be able to pay it off within the year leading up to the wedding anyway....

The problem is unexpected things happen all the time. If you take out further debt and something else happens then you are further in debt with maybe insufficient means to repay it. Really it is not worth it. £5k on your income is manageable and should be able to be repaid in relatively short period. Add a further £10-15k and you have tripled or quadrupled not only your debt total but the monthly repayments will take ever bigger chunks from your income. Pay for your wedding within your budget. You only need deposits upfront initially so you have time to save and repay the debt you already have.

DCFC79

immuno wrote: »

Thanks. I guess the idea of taking out the loan was for security that we can put down deposits knowing we'll definitely have the money, but we planned to pay it off within the next 18 months, before the wedding...not after! If that makes sense..

Somebody mentioned that it's better to make repayments that are higher than the minimum amount on the credit cards. Is this better, or is it better to save and pay off the loan faster?

Yes its better to pay more than the minimum, even £1, the more you pay towards the quicker it gets paid off.

SnowTiger

forgotmyname wrote: »

And she still went bankrupt? What chance does the OP have?

Twice! And had a whip round to pay for wedding: guests were asked make a small donation. :rotfl:

Now there's a thought... :rotfl:

enthusiasticsaver

immuno wrote: »

Thanks. I guess the idea of taking out the loan was for security that we can put down deposits knowing we'll definitely have the money, but we planned to pay it off within the next 18 months, before the wedding...not after! If that makes sense..

Somebody mentioned that it's better to make repayments that are higher than the minimum amount on the credit cards. Is this better, or is it better to save and pay off the loan faster?

Even if you were to borrow money (a 0% card is best way) then it makes no sense to take out credit now to simply ensure the money will be there in 18 months. Work out what it will be, pay the deposit and save the correct amount every month and treat it as a loan payment so you have it there to pay when needed. Check what everything will cost and payment dates.

I think there is more than 1 reason why you are being turned down for credit but 1 reason may be that lenders think you are over committed. If you are paying interest on the loan pay that off first and that will bring your total debt down which is good. That may not necessarily be the only reason why you are being declined. Constantly moving may be the biggest issue. Lenders don't like this.

Gambler101

The bigger the wedding the quicker the divorce.

PeacefulWaters

Gambler101 wrote: »

The bigger the wedding the quicker the divorce.

Really?

Damn, I wish I'd paid much more!

Money_Rollercoaster

Start with a blank piece of paper and plan a wedding you can afford. Everything should be scrutinised.

Heather2603

Honestly, my husband and I saved up and paid for our wedding and honeymoon in 2 years(about £7.5k) and our salaries were a lot less than yours!

Sit down with good old pen and paper, do a budget, build in some emergency savings and see what surplus you have left over. Say 16 months until balances will need paid? so your surplus x 16 and that's your wedding budget. Then go and plan a day and a honeymoon you can afford. If that means you and your Mrs !!!!!! off to the registry office and then have an utterly amazing honeymoon because that is your priority then good on you.

I genuinely wish we'd spent more of our budget on Honeymoon and less on the actual Wedding because at the end of the day the main priority was that we were married(hindsight and all that!)

Good luck with it all!

Fireflyaway

Do you really want to start married life in debt? I think it would feel amazing if you did a budget and saved up. It might be exciting working together to reach your goal and not being tied down to loan repayments for months, maybe years after the big day. Could you make some savings somewhere or set the date a little further off?
I don't mean to sound patronising because I've used credit ( up to quite recent) but I've come to realise you won't be as wealthy as you could be if you get everything on credit all the time. My parents struggled to save for what they wanted, went without or had second hand. As a result they are now quite comfortable. I have a lot of catching up to do! A wedding doesn't need to cost a lot to be a fantastic day. Mine wasn't expensive but I wouldn't have changed a thing. I even once had a colleague tell me she regretted her choice of wedding. Whilst she had a nice day she was annoyed that she spent so much on family she hadn't seen in years and a disco for everyone else's benefit. Do what's right for you and not what makes you look good. Give it a year and the guests won't even remember!

immuno

DCFC79 wrote: »

Yes its better to pay more than the minimum, even £1, the more you pay towards the quicker it gets paid off.

Oh, only in terms of repaying, not improving credit rating? I'd prefer to pay off the loan first, rather than a 0% card.