Loan for a Wedding -Pay back some using Gifts

I

IrishGunner

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Looking at option of taking out a loan to finance a wedding. Plan is to save as much as we can and then borrow the rest. However i know it maybe presumptuous but we hope to use any money we get as gifts t pay some of it of

No figures yet but say taking €20k over 5 years and best rate I can see via bonkers is 5.9% APR (fixed rate) & 5.7% Interest rate (fixed rate) and Unscheduled repayments are allowed with An Post money. Not sure if any hidden extras?

So taking this if we where to use gift money loan length would remain along with agreed payment amount or can you pay off earlier without incurring a early payment fee?

The APR for the Credit union is 11.56% and we have some savings there but at that rates seems crazy to go there

Anyone got any suggestions or anyone took a loan out for a wedding and how did you work / repay it?
 
Fixed rate loans usually involve a penalty charge if you want to pay them off early. Check the loan terms and conditions.
 
@IrishGunner
There is no early redemption charge (break fee) on An Post (Avant) personal loans. In any event, under EU directive on consumer credit, an early redemption charge can only be applied where in excess of 10,000 is repaid early in any 12 month period.
 
If you are going to pay it off quickly, take the higher variable loan. You won't pay that much interest on it anyway.
 
If it's any help, here's a key post on overpayment of personal loans:

Key Post - How Personal loans work: Making early repayment & overpayments

Inspired by a discussion in another thread, I couldn’t find a Key Post on how Personal Loans work, particularly around repaying Personal loans early, so here’s first attempt at it. I'm happy to take feedback and make amendments for people’s experiences with different lenders, and any practical...
www.askaboutmoney.com
 
Thanks for the replies

Only just looking at costs etc and looking at getting loan first and pay any fees etc as plan not to get married until next year but planning starts now and to pay for what we can along the way

So not sure if its going to be paid quickly but would hopefully pay good chunk of it after wedding.

Any other tips etc please let us know as still in planning stage
 
IrishGunner said:
Thanks for the replies

Only just looking at costs etc and looking at getting loan first and pay any fees etc as plan not to get married until next year but planning starts now and to pay for what we can along the way

So not sure if its going to be paid quickly but would hopefully pay good chunk of it after wedding.

Any other tips etc please let us know as still in planning stage
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If you aren't getting married until next year, you have 12-18 months to save for it. The big bills i.e. the hotel aren't due until just before the wedding, so you have loads of time to save.
 
IrishGunner said:
Thanks for the replies

Only just looking at costs etc and looking at getting loan first and pay any fees etc as plan not to get married until next year but planning starts now and to pay for what we can along the way

So not sure if its going to be paid quickly but would hopefully pay good chunk of it after wedding.

Any other tips etc please let us know as still in planning stage
Click to expand...

Congratulations on your engagement and enjoy every minute of the planning and celebrations.

Having helped organise several weddings for friends and family, my tip is to keep it on the simple and affordable end. Believe it or not the differences in experiences between a €5,000 party and a €50,000 affair can be minimal.

I know a few people who regret spending a lot as it delayed them buying a home or having children. I don't know anyone who wished they had spent more. Also better to be conservative in what you expect to receive as gifts as I know people who have been caught by this on the day.
 
Thanks

We are not young(wish we where) fairly financial stable with normal bills and creche fees (yes we have children) and mortgage been our major outgoing. We do have savings and trying to decide what we can afford extra to save each month towards the wedding

We don't want anything 'Blingy or 'Flashy' and not out to impress anyone its our wedding and the people we want there will go and we are limiting it to 80 at max. if we go abroad those we mentioned it to said they will go and if not no biggie. I agree its an extra expense and we don't expect guests to add more to their costs with an expensive gift.

Again its working out costs v getting married abroad v Ireland and its our wedding so up to us and thats what everyone is agreeing with.

Again early stages so just looking at all options and costs and input from those whom have done that and bought the t-shirt
 
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