Compare wedding loans to fund your big day

Before applying for a wedding loan, you and your future partner should sit down and discuss your financial situation so you both fully understand the financial commitment you’re agreeing to. Below are some of the questions you should discuss.

• What are the fees that you’ll be charged? When you look at the fees of a loan, you should remember to check the upfront fees as well as ongoing charges. Upfront fees cover the cost of setting up the loan, for example, establishment fees, and ongoing fees can include monthly account-keeping fees or amounts charged for using some of the features of the loan. You should also be aware of late and NSF fees.
• What interest rate are you being offered? When looking at the rate offered by the lender, make sure to check whether the rate is fixed or variable. You can also see if the lender offers an introductory rate that can help you save money in the first stages of the loan.
• Are the loan amount and terms affordable? You need to ensure that the amount you want to borrow and the length of time you want to borrow it for is offered by the lender. You can check the minimum and maximum loan amounts each lender offers and see if they suit your needs.

While there are plenty of ways you can make your wedding more affordable — including choosing a less expensive venue or renting a dress — these are five common ways people avoid borrowing a large amount for their big day.

• Savings. The primary way people pay for a wedding is through savings. It might mean a smaller honeymoon or a more simple reception, but by using your savings, you can avoid paying interest for your wedding.
• Family and friends. It’s not uncommon for family and friends to help out a little for budgets. Parents are usually willing to foot a portion of the bill, and friends may be interested in DIY centerpieces or discounting services like photography and flower arrangements.
• Budgeting. Even if you don’t have a huge savings account, you can still work your way to borrowing less. Sacrificing little optional expenses that tend to add up — like takeout — you can add to your wedding budget without affecting your quality of life too much.
• Scaling back. When you’re still planning your wedding, scaling it back can save hundreds — sometimes thousands — of dollars. Fewer guests, a simpler venue and simpler decor will all help maximize your budget.
• Postpone the ceremony. It might not be ideal, but if you don’t have any set plans, consider extending your engagement. The longer you have to build your savings and find deals, the better off you’ll be — and the less you’ll need to borrow.