Photo: Flickr / Mjnh Nguyen
Not all of us can afford a lavish wedding, but the thought of going into debt to finance one sounds like a terrible idea. Yet Canadian brides now have the option of signing up for Royal Bank of Canada’s MyProject MasterCard, which Globe and Mail’s Rob Carrick is calling “a novel borrowing alternative to conventional credit cards” and “a sign of how debt has become the great facilitator in our lives.”
Carrick explains how it works: “You can spend up to $40,000 on it and pay nothing for the first six months. At the end of that period, your card debt converts into a loan that you repay over a period of five to 15 years.
Currently, there’s a variable-rate option on the loan at 7.99 per cent (prime plus 4.99 percentage points) and a fixed rate option at 8.99 per cent. Conventional credit cards charge in the range of 20 per cent these days.”
This sounds well and good on the surface, but as Carrick points out, it could do a number on your finances, leaving you in debt for quite some time.
Not only is Gen Y is facing exorbitant college debt, inspiring countless reporters to dub them the “Boomerang Generation,” but a number of factors—notably the jobs market—have put them behind the retirement planning 8 Ball.
Not only did the recession scare them away from investing in stocks, many don’t understand what it means to be truly self-sufficient and can barely afford their rent let alone a thousand dollar wedding tab.
Planning a wedding of your own? Learn about marriage and finance here >