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Myth 3: A marriage loan will be easy to obtain

This is not necessarily true, especially if neither you nor your spouse has a solid credit history or if you both already have a good deal of debt in your name, such as student loans or car loans. You may be able to get a marriage loan with a co-signer, which allows someone who qualifies for the loan on their own to co-sign in the event you default. This could cause dissention in the family if you are not able to make the payments.

Even if your loan is easy to obtain, consider the fact that you will probably be paying it off for at least five years, sometimes more depending on the terms of your loan.

What to Consider Before Obtaining a Marriage Loan

If you are serious about applying for a marriage loan, consider the following before signing:

Your income

If you decide to take out a marriage loan, you will need a stable income that will allow you to cover the monthly payments of the loan without putting strain on your finances. If you don't have the income to get a marriage loan without a co-signer, or if you are living paycheque to paycheque as is, a marriage loan may not be the best idea.

Your financial goals

Do you want to buy a home or car in the future? If you have little or no other debt in your name, or are willing to qualify for a smaller home or car loan, then you might be able to handle the debt load of a marriage loan. On the other hand, if you want to increase your savings, save money for a home, or decrease your current debt load, the money you will be spending each month on a marriage loan may keep you from reaching your goals as quickly as you'd like.

Your current debt

Your current debt load should also affect your decision of whether or not to get a marriage loan. If you have little or no debt, you may be able to take out a marriage loan if you and your spouse both agree that it's a responsibility you're willing to take. However, if you are already both in debt, you may want to pursue other options for funding your wedding. Entering a marriage with a high amount of debt can put strain on your relationship. If your debt starts to get out of control, it could drive you to a Lethbridge bankruptcy.

Your spending habits

Take an honest look at your spending habits. If you and your future spouse are responsible spenders and have a plan for paying off your marriage loan quickly, then it might not be a bad option if you feel strongly about it. However, if you are in the habit of incurring debt and tend to be more of a spender than a saver, a marriage loan may not be in your best interest.

Marriage loans may seem like a great way to pay for your dream wedding, but they can also be risky. Consider these marriage loan myths before opting for a marriage loan; there are many other ways you can fund your dream wedding without going into debt.

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