Getting married can be one of the best days of your life… it can also be one of the most expensive! Running off to the courthouse is still an options, but to having a big wedding ceremony costs thousands of dollars – or more! It’s no wonder why wedding loans have been made available to provide enough funds for the ceremony of your dreams.
But is it worth it?
What are wedding loans, and should you consider getting one?
Wedding Loans Defined
With the average American wedding costing in excess of $33,000 it’s no wonder people turn to lenders for funding.
A wedding loan is actually a personal loan, and nothing more complicated than that. Some lenders have re-branded their products as wedding loans, but they are just personal loans with a fancier name.
As with any other personal loan, you can technically spend it on whatever you want!
The benefit of a wedding loan is getting all the money you need in one lump sum, to spend as you see fit. This can reduce a lot of the stress for everything up to and including the wedding itself.
But then what happens?
Why Financial Advisers Are Against Them
There are several reasons why financial advisers warn against these loans.
First, you start off your new union in a lot of debt. It might take you years, and cost you thousands of extra dollars in interest, to fund your special day.
Debt adds stress to a relationship. Moreover, having a large outstanding debt could disqualify you from other loans, like a mortgage for a new home.
Also, having all that money in your pocket will make you more prone to spending it. Why bother being frugal when you have an extra few thousands bucks in your pocket? Frivolous spending will only cost you more in the long run.