Like personal loans, they have fixed terms. But because the loan is secured, interest rates are generally lower than on personal loans or credit cards. According to Bankrate, they average 5.56 percent for a home-equity loan and 5.90 percent for Heloc. There may be other fees, however, like closing costs or account maintenance. Also, the interest is no longer tax deductible; the new tax law eliminated this longstanding feature.
Other potential borrowing sources may be retirement funds, like 401(k)’s. But here again, be cautious: Failure to pay it back in a timely manner could result in penalties and taxes, not to mention reduced retirement income. (Along those same lines, you can also borrow against a whole life insurance policy, though the death benefit is reduced if you don’t repay.)
“A wedding is a depreciating asset,” Mr. Shagawat said. “You don’t want a wedding to jeopardize your retirement or long-term success.”
Friends and Family Donate Here
Some couples have successfully turned to sites like GoFundMe and Indiegogo to raise money for their weddings.
“In this day and age, why not?” Ms. O’Neill said. “Couples are already doing gift registries online, including honeymoon registries. This is an extension of that.” (Some registries, in fact, offer cash options, like the Knot’s Newlywed Fund or the WeddingWire’s NewlyWish Fund.)
The big question, however, is how do you make requests for cash without sounding, well, tacky? “I’ve seen it done tactfully,” Ms. O’Neill said, particularly for couples saving for both a wedding and a home. “I’ve seen invites that say something like, ‘Our biggest financial goal right now is to save for a house. We encourage you to help us reach our dream.’”
Article source: https://www.nytimes.com/2018/05/09/fashion/weddings/how-to-get-help-paying-for-your-wedding.html?partner=rss&emc=rss
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