Wedding loan or credit cards?

Legacy_user

We're getting married in 2020! Yayyy, and I have already made the customary investment in gold

I see loan rates available far below how I expect my s&s isa to perform, if I could borrow I wouldn't have to make my investment safer, but if I can't then I will use VLS20

My credit history is still weak so I have doubts about being able to borrow for it, but I am paying down current 0% cards just to prove I am reliable

I imagine a loan would have much higher forced repayments than another 0% card, so I think my affordability and debt to income ratio would be far worse going down this route, and my ability to take out another 0% card after that would be even worse.

Is this true, that a loan limits overall ability to borrow Vs Cc's?
If so it might be a false economy and maybe I am better off selling investments with a view to buying more back when I can get another 0% card?

amfan

Can you not save up for your wedding instead? Surely if you can't afford it in 2020 without a loan then you should get married slightly further down the line when you can afford it? I can't imagine ever wanting a party worth years of debt for.

bengalknights

I would also suggest saving as much as you can upto the period

davidwood123

Getting a loan for a wedding is madness.

Save up if you really want to spend so much money, otherwise do it on the cheap.

It's one day which isn't worth years of payments. The relationship is the important thing.

Mogley

Use your savings/investments to pay for the day.


You are far more likely to be sensible about how much you can afford for the big day when you are using your hard earned cash.


There is still a couple of years until you need to spend the money. Have a sensible budget in mind and move/sell portions of your investments periodically to satisfy the risk you are willing to take.

PeacefulWaters

davidwood123 wrote: »

Getting a loan for a wedding is madness.

Save up if you really want to spend so much money, otherwise do it on the cheap.

It's one day which isn't worth years of payments. The relationship is the important thing.

You can't say that around here. They'll delete the thread.

System

We will be able to afford it by then, but it's more about borrowing to indirectly invest/ avoid having to sell or be heavy in bonds. Many years of interest in exchange for years of divided and capital gains, I'd like to borrow the most I can for it cheaply, thinking Cc's may be better?

System

http://www.morningstar.co.uk/uk/funds/snapshot/snapshot.aspx?id=F000005OPT

davidwood123

PeacefulWaters wrote: »

You can't say that around here. They'll delete the thread.

Wondered where that went :rotfl:

Mogley

MatthewAinsworth wrote: »

We will be able to afford it by then, but it's more about borrowing to indirectly invest/ avoid having to sell or be heavy in bonds. Many years of interest in exchange for years of divided and capital gains, I'd like to borrow the most I can for it cheaply, thinking Cc's may be better?

So you are effectively looking to stooze the money from a loan/CC and hope to beat the returns of 0% CC (4% loan) by 2020? Can you guarantee beating 0% in two-three years using investments? You may have enough money already to be able to take this risk. CC is cheapest. Neither option is best.

davidwood123

MatthewAinsworth wrote: »

We will be able to afford it by then, but it's more about borrowing to indirectly invest/ avoid having to sell or be heavy in bonds. Many years of interest in exchange for years of divided and capital gains, I'd like to borrow the most I can for it cheaply, thinking Cc's may be better?

Judging from your posts in regards to money and investments you're obviously an expert.

You must already have more than enough to pay for your wedding without living beyond your means paying with credit cards so why bother? :rotfl: