Who says beautiful days says weddings season. The broker Purtyue therefore wondered about the profile of the French who are planning to get married this year and their means of financing.
Which modes of financing are favored?
For starters, how many French people plan to get married in 2017? According to the Purtyue survey conducted by the CSA Institute, 5% of respondents plan to use credit. The proportion of young people is necessarily greater: they represent 12% among 18-24 year olds and 9% among 24-35 year olds.
To finance their project, 49% of them consider taking out a marriage loan. For 31% of respondents, the funding will even cover the full costs of the event.
” This beautiful project of life and future is also financially binding! It can be a significant cost for couples, especially for those who are in the process of building life or who combine other personal projects, says Bella Roger, Director of Communication and Loan Studies. Solutions exist to achieve its project serenely, among them, credit is a real lever.
Credit aside, what “solutions” are possible? 78% of French plan to use their personal savings and 29% to ask for help from relatives.
What do we finance with a marriage loan?
All. This ranges from the rental of the room to the honeymoon through the realization of announcements, the holding of the bride and groom, the wedding rings, the meals, the play, the photographer and the DJ!
All these benefits can indeed be financed by a marriage credit, and for good reason… Behind the name of marriage credit, the lending organizations offer – for the sake of simplicity – a personal loan. However, the particularity of this credit is that the borrower does not need to provide proof to the lender. The advantage? You can include several types of expenses in a single funding envelope.
Purtyue advises the rest to use only one funding envelope once you have established your budget. ” [Multiplying] credit lines is not a good thing for future projects (new credit request) but in addition it has an impact on the cost of credit, ” warns the broker.
An ” impact ” ? In fact, the larger the amount of your loan, the lower the interest rate. ” With a credit of € 5,000 or more, partner rates start from 2% while for a lower amount, they start at 3.90% “.
And if I finance my marriage with my savings?
For Purtyue, ” it’s not always the right solution. ” The proof by the example. Say you want to borrow € 8,000 at a 2% interest rate over 24 months. The cost of interest is € 174, or € 7.25 per month. In comparison, the amount placed on Livret A will bring back 120 € over 2 years (60 € / year).
” So for an effort of 54 €, we do not use his savings, and we smooth the expense over 2 years. ” While making sure not to increase its debt ratio too much. ” Especially that another event might happen requiring borrowing again or just a fall in unplanned revenue. It is therefore important to keep a bit of post-credit budget flexibility. “