Wedding Loans: To take or not to?

GhanaWeb Feature by Stella Dziedzorm Sogli

One of the big reasons people delay their weddings or marriages is due to insufficient funds. In Ghana today, an average wedding can cost between GH¢30,000 and GH¢50,000.

This cost includes wedding outfits, venue, catering and other things. Staying within one's budget is highly recommended because it is usually advisable to enter marriage with no debts.

There are various financing suggestions one could employ including taking a loan. But this decision has several pros and cons. Taking a loan may have certain disadvantages depending on who is taking it.

Even though the processes involved are just like taking out a personal loan, finance experts advise against taking loans that may not be used for investments.

Also spending money, you don’t have usually results in creating debts that may cause grave consequences.

Here are some reasons you should not consider taking a loan to finance your wedding.

1. High interest rates: Currently interest rates in Ghana are very high and risky to take loans. For instance, the monetary policy rate is above 20% in Ghana today, therefore banks and financial institutions will charge above 20% on loans. If you took a loan of GH¢20,000, you would be repaying for quite some time, and this will be the early days of your marriage. Not being financially independent in the early days of marriage can cause problems for the newlyweds.

2. If you pay for your wedding out-of-pocket, it is usually easier to work within your budget. This also makes you comfortable while making decisions. Sometimes this also helps you cut the number of people you invite.

3. Taking a loan to finance your wedding may also block your chances of getting another loan for other important things you may need to start your marriage life. Even if you can secure another loan, it means you would have so much debt to pay.

Meanwhile, there may be some advantages that one can consider. It is easier to take out a loan to pre-finance your expenditure since most services may need to be paid for beforehand. Also, it can help you plan your dream wedding even when you cannot finance it immediately.

However, a bit of good advice is to do what you can afford and stay out of debt. You do not want to start a new life with debt.

SSD/NOQ

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