The major events in our lives, such as milestone birthdays, weddings, anniversaries, or cultural festivals, deserve major celebrations. Whether you’re organising a major event in advance, or need to get one ready at the last minute, there are options available to help finance your event without a hitch.
Why do people use personal loans for major events?
It’s easy to get swept up in the moment when planning a major event, and forget that at the end of the day, a lot of what makes your event special, from the venue to the decorations, the music and the catering, will need to be paid for.
Support from family and friends can be a big help when organising a major event, but a personal loan may provide the extra financial help you need to get your event off the ground while keeping your budget under control.
What are the main features of personal loans for major events?
Personal loans for major events can be for a couple of thousand dollars, or tens of thousands, to be repaid over a term of one or more years. The longer your personal loan term, the lower the repayments will cost from month to month, though you may pay more in interest and fees over the long run.
Unsecured personal loans offer flexibility, though a secured personal loan uses a deposit, or equity in your home or car, to guarantee your loan and help lower your interest rate. To keep your budgeting simple, a fixed interest rate keeps your repayments consistent, though variable rate personal loans are also available.
A personal loan that allows extra repayments can help you clear your debt faster and pay less interest by paying a bit more when you can afford it, such as when you get a bonus or tax refund. If your personal loan has no exit fees, you can keep paying extra until it’s time to exit the loan ahead of schedule. And a personal loan with a redraw facility can let you withdraw some of these extra repayments if you need them, such as when another surprise major event comes up.
If you have bad credit, you may find it more difficult to get a personal loan, but it’s not impossible. Just remember that bad credit personal loans from specialist lenders may have higher interest rates and more limitations than other loans.
What are the pros and cons of personal loans for major events?
Using a personal loan to pay for a major event can help you quickly get the event’s finances under control, so you can concentrate on the finer details, like rearranging the seating plan, or picking a caterer that fits the dietary requirements. Covering your event’s costs with a personal loan also means you won’t be dipping into your own savings, and a low rate personal loan can help minimise the impact on your household budget in the future.
Whenever you borrow money, it’s important to remember that the longer you take to pay it back, the more you’ll ultimately pay in fees and interest charges. Also, while some lenders can process personal loan applications quickly, you still may not get the money in time if you’re organising an unexpected major event at the last minute.