By Ashley Tate for Credit Sesame
For many brides- (and to be fair, grooms-) to-be, the word frugal never enters their minds when planning their special day. So perhaps it's not shocking that TheKnot recently found that the average cost of a wedding is $28,427. That's an increase of more than $1,400 from the previous year.
If you're fortunate to have someone paying for your wedding — or at least cover a portion of the costs — you might not need to worry about sticking to a budget. But if you're like many young couples and don't have a ton of cash just sitting around (and borrowing the money from your folks is out of the question), you'll need to pare down your ceremony and reception. Even then, you might need financial assistance in order to make your wedding day happen.
Our credit experts break down all of your payment options. See which one may be the right fit for you.
Tapping Your Home Equity
If you own your house, you may be able to get relatively inexpensive financing with a home equity line of credit (HELOC) to foot your wedding bill. Since this type of borrowing is backed by your home (i.e., a secured loan), it's likely that the interest rate will be lower than what accompanies a personal loan.
Keep in mind, not all banks offer HELOCs these days. Shop around. In fact, sometimes local credit unions can be the best place to look for a HELOC.
One cautionary note: If you fail to pay back your loan, not only will your credit be damaged, but more importantly, the bank could initiate foreclosure proceedings against you. Keep reading...
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