Personal loan for wedding

NicG

Registered User
Messages
26
Financial advice greatly appreciated!

We're getting married in Dec 2007. We had planned on doing this in a year or two and saving - but for personal reasons we decided to bring it forward and borrow instead.

We want to borrow 35,000 to cover costs of wedding and honeymoon.

My questions are
  1. Loan arrangement:
    1. Should we apply for a separate joint loan for the wedding - in which case we have repayment of this loan aswell as €1,000 p.m repayments of existing loans plus credit card repayments?
    2. Consolidate this loan, credit cards and existing loans and repay over 5 years?
    3. Apply for individual personal loan top-ups?
    4. Other borrowing options?
  2. Have we a prayer of getting anywhere near this amount?
  3. If so - where are the current best buys?
  4. Should we say it's for a wedding - I've already a home improvements loan?
Our current financial situation is as follows...



Personal Loan (Me) :
Orig amt 25,000​
Repayments made 6,000​
Int chgs 1,400​
Amt outstanding 20,400​
4 years left of 5 year loan.​
Monthly repayments 550 p.m​
Gross Salary 85k p.a​

Personal Loan (Him):
Orig amt 15,000​
Repayments made 6,500​
Int chgs 1,000​
Amt outstanding 9,500​
2 years left of 3 year loan.​
4 years left of 5 year loan.​
Monthly repayments 430 p.m​
Gross Salary 35k p.a​

Credit Cards (Me):
CC 1: 7,500 limit - 2,600 spent = 4,900 credit available​
CC 2: 15,000 limit - 0 spent = 15,000 credit available​

Credit Cards (Him):
CC 1: 3,500 limit - 1,900 spent = 1,600 credit available​
CC 2: 7,500 limit - 6,400 spent = 1,000 credit available​

Other Info:
Mortgage - 500k...not willing to re-mortgage for wedding.​
No kids​
Safe secure jobs​
Both long history of borrowing, repayments, consolidations due to college fees, car loan, home improvements. Neither of us have ever missed repayments.​
 
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over2u

Guest
The best and cheapest way to do it is take out a split mortgage and pay the wedding loan over a short term. eg 5 years. you dont indicate your earnings, but as an outsider looking in you should seriously do something about those credit card balances. Does your wedding need to cost €35,000?
 

ClubMan

Registered User
Messages
44,344
We want to borrow 35,000 to cover costs of wedding and honeymoon.

...

Personal Loan (Me) :
Amt outstanding 20,400​
Personal Loan (Him):
Amt outstanding 9,500​
Credit Cards (Me):
CC 1: 7,500 limit - 2,600 spent = 4,900 credit available​
Credit Cards (Him):
CC 1: 3,500 limit - 1,900 spent = 1,600 credit available​
CC 2: 7,500 limit - 6,400 spent = 1,000 credit available​
Other Info:
Mortgage - 500k...not willing to re-mortgage for wedding.​
You seem to have c. €40K in non mortgage debt already and you want to borrow €35K more? Sounds crazy to me.

I also think that you are wrong to consider your CC as a source of borrowing witn so much of the credit limit "spent" and so much remaining available. You really should use a CC just as a cashflow management tool and not as a source of medium/long term borrowing.
 

NicG

Registered User
Messages
26
As indicate in the post:
  1. Can't add to the mortgage - already at 100% + so not an option.
  2. Combined salary 120k gross.
Just want to know the best options for financing a 35k loan.

Thanks
 

NicG

Registered User
Messages
26
Clubman,

I don't want to use the credit cards to finance the wedding. Hence looking for advice on the best way to finance a loan. The breakdown was given as - per other posts - if I hadn't given it I would have been asked for it.

Thanks
 

pc7

Registered User
Messages
593
you seem to have a lot of debts already, with your earnings would you not just work at clearing your debts, put the plans of a 35,000 wedding on hold until you save for it (or do it cheaper). Maybe you'll enjoy the day more if you save for it. Would seem ludicrious imho to get into further debt for 1 day. What happens if in the future you want kids you are the larger earner in the partnership, do you gain paid maternity leave, how will you afford childminding if you are paying out such large amounts on borrowed money besides your mortgage.
 

paddi22

Registered User
Messages
469
I agree with pc7. 35,000 loan for one day and a honeymoon seems a bit crazy. Would you not scale wedding back or wait until you have saved for it. You seem to be confident that you can pay back any loans - but the unexpected could always happen. What if one of you gets seriously ill and can't work? You don't seem to have any emergency fund built up.
 

NicG

Registered User
Messages
26
The wedding can't be postponed - as per the original post we had reasons for bringing it forward - and nothing to do with the love of meringue dresses I can assure you.

To be honest I am just looking for advice as to what type of loan to go for or whether we'll get a loan - with respect I'm not looking for approval of our wedding plans.
 
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over2u

Guest
Nicg. You are obviously not interested in the common sense advice being proferred here. €35000 is too much for a wedding you HAVE to proceed with. We are not advising you to put it off, merely consider the expense!
 

Bob_tg

Registered User
Messages
499
As a matter of clarification... can you answer the following:
- are you planning on the 35k before or after presents?
- how many guests are you planning to invite?
- will the wedding be in Ireland or abroad?
- how much are you planning to spend on honeymoon portion?
- have you already bought the engagement ring?
 

pc7

Registered User
Messages
593
NicG can you clarify is it dec 2008 or 2007 that you want to get married not sure if that's a typo in your original post, december 2007 is 5 weeks away which would be pretty hard to arrange!
I have a look at your figures, with 11,000 owed on your credit cards that would be the debt to try shift asap, try switch to 0% interest for 6 months and cut up the cards, with the earnings of your household you need to learn not to need them. Putting credit card debt onto a 5 year loan is madness .Excluding the credit card debt, if you were to borrow 60,000 (20400 +9500 outstanding) + 30,000 for the wedding, repayments over 5 years which most banks do would work out at around 1208 a month without payment protection. Or if you want to put it all in a bank loan 75,000 with no payment protection 1500 a month for 5 years. Not sure what your mortgage is costing a month from the post so don't know how much you guys have in your bank account each month to start with. Maybe have a look here for advise on various loan/bank options http://www.itsyourmoney.ie/index.jsp?1nID=93&nID=104&pID=94
 

csirl

Registered User
Messages
2,162
How much are your mortgage repayments per month?

Using back on an envelope estimates, would I be far off saying that your repayments on (i) loans, (ii) mortgage & (iii) credit cards are not far off 4k a month?

Therefore annual all loan repayments are in the 45k per annum region? (based on 2.5k/month mortgage, 1k/month loans + 500/month cc)

I dont know what your tax status is, but c.1/3 of gross income is normal, thus you have a take home pay income of c.80k?

This means that you are already paying more than 50% of net income in loan repayments - way more than recommended? And you want to add another 35k debt?

I'm really reaching in the dark for mortgage & take home pay figures, can you help out?
 
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over2u

Guest
pc7 you say Putting credit card debt onto a 5 year loan is madness, then you suggest a €70,000 loan over 5 years?????????? Clarify
 

csirl

Registered User
Messages
2,162
CC 1: 3,500 limit - 1,900 spent = 1,600 credit available​
CC 2: 7,500 limit - 6,400 spent = 1,000 credit available​


Someone with a gross income of only 35K income having credit card debts of €8,300 is madness.​
 

pc7

Registered User
Messages
593
I do think the whole thing is mad see my previous post, but poster has asked for options/advise so that was i was giving.
 

ClubMan

Registered User
Messages
44,344
I don't want to use the credit cards to finance the wedding.
And neither was I suggesting that you do that. I was pointing out that using CCs to the extent that you seem to be doing for medium/long term credit is an extremely bad idea.
 

NicG

Registered User
Messages
26
Not sure where to start with this. As I stated before - I'm not looking for approval for my plans or budget. I feel they were fairly straightforward questions I asked. If people have suggestions as to how to obtain a 35k then I'd love to hear them if not please save yourselves the bother of replying.

In reply to posters:
  • We have considered the expense.
  • We have not taken cash gifts into account as we won't borrow on the strength of what we may or may not get. Any cash gifts will go back against the loan drawdown.
  • To clarify - wedding (Ireland), honeymoon booked, invites sent, ring bought, incl flights home for siblings travelling (5,300).
  • Wedding is Dec 2007.
  • 80% credit card debt all incurred in last 6 weeks on deposits etc. We normally only use credit cards ad hoc for internet purchases. 100% cleared monthly.
  • Can clear my credit card debt this month to maintain 0% interest charge. If can't get loan he plans on changing card providers to avail of 0%.
  • Current mortgage payments 1980 pm. Current rental income 450p.m.
  • Current loan and mortgage repayments 2,960
  • Current total net pay 6,700 (after health insurance, travel pass etc)
  • Current disposable income 3,740 (before utilities)
 

ClubMan

Registered User
Messages
44,344
  • Current rental income 450p.m.
Is this income separate from the income for you and your partner mentioned in the original post? And is it gross or net of all expenses and taxes?

If you cannot/will not remortgage/topup for the required finance then the only option would seem to be to look for unsecured loans for the required €35K while perhaps also consolidating the existing unsecured loans into the best package available. To be honest I can't see too many lenders jumping at the chance of doing this given the figures involved. Have you tried applying for additional loans yet?
 

NicG

Registered User
Messages
26
Rent a room scheme - below current annual threshhold. But not really taking into account as it's a short-term let that we would rather not extend. Worst case scenario though it's a 3 bed house so could rent out a 2nd room.
 

NicG

Registered User
Messages
26
Forgot to say. No we haven't applied anywhere yet. Was looking for that advice on this website.
 
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