With the average cost of a wedding being in excess of $30,000 these days, the idea of a wedding loan seems more sensible than it used to. Planning and executing a wedding costs a lot, and having the cash to cover it all might take away a lot of your stress.
Or it might add to your stress.
Before you take a personal loan to cover your costs, think about what the advantages and disadvantages of a wedding loan are.
Reasons to Say “I Do”
Paying deposits and upfront costs can be overwhelming. If you have ready cash from a loan you don’t have to worry about all the little expenses along the way.
If your credit score is good, wedding loans are not hard to find! They also will normally come with much lower interest you would pay with a credit card.
Acquiring the loan and then paying it back will positively impact your credit score. A strong marriage isn’t built on credit score, but it surely does not hurt!
Reasons to Say “I Do Not”
With a wedding loan, you are starting your marriage off with a fresh debt. If you already have existing debts, then piling on another loan will not put you in a good financial starting point.
Loans are not free, no matter what they are for. While a personal loan will be cheaper than a credit card, it still costs interest! The larger the loan, and the longer it takes you to repay, the more it costs.
You can’t spend the money you don’t have. Getting a large loan may give you an artificial sense of comfort, which will encourage you to spend more money than you need to.
Neither marriage or a large loan should be approached lightly. These are both major commitments, and you need to be 100% sure before saying “I do” to either.
Before locking you and your new spouse into a wedding loan, make sure you are comfortable going into debt to pay for a day. It might prevent you from future loans, which could impact your long and happy future together.