Whitepapers

Before Wedding Payment Plan started offering wedding financing, brides, grooms & families took out personal loans, used credit cards, home equity loans, depleted cash savings, or a 401k loan to pay for their weddings. These options were not intended for this purpose and could cost you severely through "over limit" fees, early withdrawal penalties, adjustable rates, revolving debt and the potential to reduce your retirement savings exponentially. Instead, Wedding Payment Plan combines the best aspects of each to create a smart loan product specific for your wedding day!

The tough economy has today's brides and grooms turning to innovative wedding payment solutions.

Caught between shrinking disposable income and increased cost of living, today's couples are fast learning to be both financially conservative and creative in this economy. Older, wiser and more technologically savvy than their predecessors of even ten years ago, today's brides and grooms are empowered, self-sufficient, and know what they want. Research has shown that these couples are also picking up the tab for their wedding 60% of the time.

In planning their weddings, couples are seeking savings and risk mitigation at every turn, opting for Friday night and Sunday weddings, online research and shopping, amateur photography, in season flowers, and/or package discounts.

And when it comes to paying the bill, these wise consumers are seeking alternatives to risky payment solutions that may cause stress or financial hardship down the road. Brides and grooms are opting out of depleting their savings, spending their wedding money," maxing out credit cards, taking out a "traditional" bank loans, borrowing against a home or 401K, or borrowing from families and friends - for good reason.

Scott Almeida, CPA, Founder and President of Wedding Payment Plan, warns couples against making long-term, costly mistakes. He says:

  • Do not deplete your savings

    "Exhausting their savings is one of the worst things engaged or newly married couples can do," Almeida said. "Why start a marriage under financial stress rather than with a monthly payment that easily fits their budget? Couples will need that cash for a rainy day because you just never know."

  • Don't spend your money before you have it

    Another mistake couples make is to anticipate or rely on wedding gifts to pay for a wedding. Almeida says, "Don't bank on it." He added, "I've seen it before. Nothing causes greater stress than not having what you need when you need it." And when it comes down to the day of the wedding, and not having the cash in hand, how can the couple enjoy themselves?

  • Borrowing from family is a bad idea

    Another mistake couples unknowingly make is borrowing money from family members. "This almost never ends well," Almeida said. Brides and grooms enter their new family or in-law situation compromised and under stress.

  • Don't ‘max' out your credit card

    Credit cards' low introductory interest rates may seem like a great option, but in the long run, this revolving debt will cost you as it lingers on and on unpaid for months or years. Also, count on extra fees and financial penalties for being over your spending limit, late payments or not meeting minimum payment criteria.

  • Taking out a traditional bank loan or home equity loan is unwise

    Traditional bank loans may be an option of some brides and grooms. However, it will be difficult for a bride to qualify for an uncollateralized loan for an amount close to the actual average wedding spend. Additionally, interest rates for a non-specific, personal loan would most likely be relatively high in today's rate market. A home equity loan or line would, on the other hand, be collateralized and would warrant a better rate, but most banks are highly scrutinizing these days. And most lines carry an adjustable rate that will change over time or fluctuate with the market, and revolving term with only minimal payments due may allow that debt to linger for months or years.

  • Borrowing against a 401K should only be done in an emergency

    Even though most employers allow their employees to borrow against their 401K, this should only be considered in case of emergency. Also, chances are that the average 28-year-old bride has not saved enough to borrow enough to pay for the average $28,000 wedding in Massachusetts. Another consideration is that long-term implications could be costly. A wedding payment solution is not an emergency situation.

Just as couples spend on average 12 to 18 months planning a wedding, so too should they plan for how to pay for their wedding. Research has shown that the newest trend in weddings is for the couple to pay over time with terms they choose.

Wedding Payment Plan, a first-of-its-kind specialized wedding loan company, offers loans of up to $25,000 to financially qualified couples, at low fixed rates and with optional terms ranging from two to five years, for use at preferred wedding venues across the state. Testimony to the need and desire of engaged couples, Wedding Payment Plan's volume has increased by over 500% from 2007 to 2008.

Wedding Payment Plan is an idea whose time has come based on today's lifestyles and economy. The Plan affords financial freedom, reduced financial stress, lower rates and budgeting capabilities for engaged individuals, couples and their families versus traditional borrowing techniques.

Wedding Payment Plan is available to Massachusetts' residents only through 2008, with planned expansion to New Hampshire and Connecticut residents in 2009 and nationwide in 2010.

Wedding Payment Plan is based in Norwell, Massachusetts and serves the financial needs of consumers planning their weddings at distinctive area venues.