Uh-oh, We're Out of Money
No matter how carefully you budget, almost everyone at some point will realize that they are going to spend more than they intended on their wedding celebrations. Weddings are an expensive proposition no matter what type you plan on holding, and there are always hidden costs that take us by surprise. There are several ways in which you can get some emergency funds to cover higher than expected costs for your wedding.
Plan Ahead: Now, you may think, "Hey, they just that no matter how carefully you budget you are going to go over!". This is true, but the careful budget will not take into account extra money that is needed, as the very idea of a budget negates this possibility. When you create your budget, keep in mind that almost all weddings cost more than originally planned. If you are prepared for the fact ahead of time that your wedding will probably cost about 20% more than you had originally thought, you will be better prepared to deal with the reality. You will also find that having a little bit of grace room makes it easier to spend without getting out of control.
Family: The first place you should turn if you find that you are exceeding your planned budget for your wedding is your family. Most families will be more than willing to help out with the costs of the wedding, whether it is in the form of a gift or a loan. the key is not being afraid to ask. Don't offer subtle hints, as this can be annoying. Just ask straight out if your family can help you out.
Borrowing: Borrowing is another way of securing the extra funds to cover the costs of your wedding. The trouble with borrowing from sources outside of family, such as financial institutions, is that unlike real people they have an infinite amount of money to give away and they do not say no until an individual finds themselves in real trouble. A lot of organizations set up to loan people money make great profit doing so by the interest they charge on the principle. If you do decide to take out a loan to cover the wedding costs, make sure you look for the lowest interest rates possible.
Applying for a line of credit is probably the best thing to do to get some extra money. Banks offer these with lower interest than a lending company would charge, and you also do not have to take out the entire amount (lines of credit usually have a maximum, and borrowers can take out any amount of money up to the maximum). Banks will also make sure that the interest is paid off each month at the very least.
Other loaning institutions include companies and credit cards, but both of these options will entail very high interest rates and more stringent payback guidelines. Try to avoid them if you can.
If you do have to borrow money to pay off the costs of your wedding, make sure to budget accordingly so that you can pay off the principle as soon as possible. The second you owe money to an institution, you are in danger of paying a lot more than what you took out due to interest.
Running out of money as you plan your wedding is a very common problem, and one that can be dealt with without creating a total emergency. Always keep in mind that you are starting out a new life, and that this is stressful enough without the added worry of debt. If you do have to borrow money, keep it low and pay it off right away!
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