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Not much better than Margarita, which I actually prefer. Margaretha isn’t bad though, it has a nice, delicate, and youthful sound Margaret doesn’t have.

Risks being pronounced mar-ga-RETH-a.

I prefer Margarita

I like Margaret very much and would use it as a mn; it's very hard to avoid nicknames for Margaret and I don't much like any of them, so I would avoid it as a fn.

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Margaretha is long, and I dislike the rhythm. MAR-ga-RET-a, like Isabella, works much better without that final -a. Where I live, nobody would say it as if the -reth- rhymed with 'breath', so that's OK, but in other parts of the world I imagine they might.