# Credit Union: Owe 5k, Savings 2k: No other debt but need 21k to get married.



## NickyK (27 Jan 2011)

Hi,

I currently owe the CU €5000 and have €2000 savings. I pay €50 per week off the loan. Myself and my partner have full time jobs.

We are getting married in August 2012. We will need a loan of around 21k for this. In the last year we have paid off both our credit cards and my partners CU loan so the only money we owe is the €5000 to the CU.

We plan on saving €500 a month at least and we will have summer and Xmas bonus from work also. Hopefully we will have around 10k or 11k by July 2012. 

My questions are these:

1) Am I better off paying off the loan with the €500 every month or paying the €50/week and let the savings build up?
2) Would we qualify for a loan of 21k?
3) What's the best way to give us the best chance of qualifying for the loan?


I've only ever had 2 loans with the CU, never missed a payment (even though I was on a 3 day week for all 2009) and paid off both early.

Thanks,

NickyK


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## nai (27 Jan 2011)

One question. What's the 21k for ?


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## Derry (27 Jan 2011)

Do you really need to Borrow so much money? Is it towards the wedding costs? Is there any way you could sit down and see if you could cut your costs? 21,000 is a lot to borrow especially when you are nearly clear of debt.


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## NickyK (27 Jan 2011)

Sorry, yes the money if for the wedding. Although we'd be borrowing 21k we'd hopefully have saved 10k. Therefore I would only be borrowing 11k but I would need to leave my own 10k in the CU for them to give me the loan.


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## PaddyBloggit (27 Jan 2011)

You might just need to leave a quarter in your account for your loan .... roughly €5k savings should cover you for a €20k loan.

If it's one savings to four borrowing  and you've saved €10k .... use €6k of that for wedding and borrow €15k for wedding.

Ask your CU what their loan to savings ratio amount is ..... that'll decide you.


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## NickyK (27 Jan 2011)

Thanks Paddy.


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## truthseeker (28 Jan 2011)

Op - it sounds like you have done a great job on clearing debt and well done on that. I think youd be mad to borrow money to get married. Its only a party, and you will regret the time you spend paying that party off once its done. It would be nicer for you to start your married life debt free if possible. Can you save a bit harder and cut costs a bit also and just use your own money instead of borrowing?

You need to think about future possibilities - what if you ended back on the 3 day week with the 11k debt hanging over your head?

Im not being harsh - but borrowing for a party is just silly.


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## niceoneted (28 Jan 2011)

I would clear the current loan In the credit union as with a clear slate it is easier to save I find and add to it. 
Aim to have it cleared by Aug so you have 12 clear months for saving for the wedding. 

Why not fill out the money makeover section to see where else you could be cutting back so as you can be saving more each month. 

I also think if you aim to have 10/11k saved that perhaps if you put your mind to it you could get this up to 15 and then try and use that and that only for the wedding. 

Shop around for it, you don't have to have the most expensive of everything for the wedding and lots of venues are giving great value at the moment. 

You don't mention if you have your own house if not this may be something you will want also so you'll have to think about a deposit for that which is somewhere that the 21k could be better used for. You may also want to start a family and this would be better if debt free as kids are expensive enough. 
Best of luck with the savings.


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## Slim (28 Jan 2011)

Nickyk, to answer your original question, they will grab you with/by both arms. You will be an ideal borrower. As for the rest, I suppose that is your business. Many weddings are self financing, so you may be able to reduce the debt substantially afterwards. Good luck with it. Slim


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## Derry (30 Jan 2011)

Nicky ,I wish you and your finacee every happiness for the future and ope things work out for you


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## callaghanj (31 Jan 2011)

With a bit of luck you'll get cash pressies and you will be able to clear a chunk of the loan!


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## nediaaa (27 Jun 2011)

As truthseeker said, it is a lot of money for a party,for one day.
   you should look into getting married abroad and then having an informal party when you get back.
  This is what we did and i can recommend it 100%.


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## STEINER (27 Jun 2011)

you could leave the loan as it is and build up your 500pm savings.  you will get a decent amount of cash as wedding presents if you stipulate that. then with your savings,smaller loan and wedding cash gifts you wont have a married start with a 21k loan.  you will easily get a 21k loan prior to wedding with your savings and reppayment records if you want it. then after wedding u can always pay a lump off any loan with some wedding cash or savings. from my own experience, total wedding gift cash of even 4k to 9k is very useful.  we had a 15k wedding i think and was paid for without loans, but the ssia money was useful!  we had a great occasion and didnt start off with a 20k+ loan after honeymoon.


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## Lilly2099 (28 Jun 2011)

I agree regarding the large amount to borrow for a wedding. I am getting married this year and with careful budgeting using suppliers who offer better rates and plan to have my wedding at a max cost of €11k with no borrowing. I ahve a sister who borrowed over €18k for a wedding last year. She is now paying off the loan and has since lost her job as has her partner, they look back now and wish although they enjoyed the day they certainly could have dine it for a lot cheaper. I know from myself your wedding iss your dream day and you want it to be perfect but think of the headache you'll have paying off the loan afterwards, and god forbid anything was to happen to your employment.


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## choccy (29 Jun 2011)

congrats on getting engaged and i don't want to cramp your style but just try to think past the wedding as THE DAY and think about starting married life- you can have a bloody good wedding day on 10,000 euro which all going well you will have saved up - 10,000 euro will still give you a massive party for your family and friends especially if you start shopping now, without compromising your day. 

 then you can start married life with a clean slate and no debt hanging over your head. just think how fantastic the two of you will feel to wake up the day AFTER the wedding with no debt in your life. in this day and age thats not a luxury many people have and you can have it as you've been good savers.

- there is alot of paying back on 21, 000 with interest- so you'll be either crippled in repayments to pay it back in 5 yrs or paying loads of interest.

but hey-maybe i'm just being boring and sensible -  if you want the massive blow out go for it and have fun !!


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## joanod (29 Jun 2011)

Hi OP,

I felt I had to post here - because I was you this time last year. We had The BIG Day just 6months ago - we did do it in style 5* but we go great deals - we didnt borrow paid as we went along over 12 - 15months, you have to be very carefull though that they dont go out of business. 

As for money gifts - not really anymore and even if you do they will be a lot less than you expect - unless you have a wealthy family that will give you generous gifts.

We had the big day as I said and we enjoyed it - Im not sure if we could afford it or not but we did pay for it - its over now and we have the photos and DVD - but there is no way I would have borrowed for it, so really think about this. It will be all over and you move on to the next thing and so does everyone else - no matter where or how you get married it will be one of the most precious days in you life - but its only a day out to everyone else, in my experience.

Money worries are a huge headache in any relationship and would it not be a lot nicer to be able to go away for a nice weekend once a month rather than service a bank loan for a day out for friends who may be strapped themselves and be under pressure going to your wedding - 

This is a very special time for you and yours enjoy it all and try not to ruin it worrying about money - Best of Luck


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