As time goes on, the fancier and more extravagant weddings get. With platforms like Pinterest and Instagram, we are surrounded with photos of dream weddings for every type of couple. You are exposed aesthetically pleasing photos of wedding decor and party favors making it easy to rack up your budget.
With access to anything and everything you could ever want for your big day, people are spending an average of $33,391 on their wedding according to The Knot’s 2017 Real Weddings Study.
That’s why more and more couples are taking out loans to pay for their wedding. Instead of budgeting down or dipping into savings, they’d prefer the option to get a wedding loan. Couples borrow, on average, $16,000 for their big day. They usually pay this off within 3 years. While this is helping couples accomplish the day of their dreams, this is a big commitment for a one day affair.
So what exactly is a “wedding loan”?
No, it isn’t a specialty loan that only couples tying the knot. It is actually just a standard personal loan that you can acquire for your wedding. Online lenders say they are issuing up to four times as many “wedding loans” as they did a year ago. This high demand for wedding loans has become a fast-growing line of business for these lenders.
Should you get one?
Paying for your wedding with money you don’t have is always a risk. Anytime you are taking out a loan, you are putting yourself in debt. While it may be worth it for things like cars or homes, you will have to decide if your wedding day is a good enough reason to put yourself in this financial situation.
Again, keep in mind that it takes most couples at least 3 years to pay off. Many people see cars and homes as a worthy loan investment because you continue to utilize these in your daily life. However, your wedding day is a one-time deal. This causes many people to reconsider their wedding loans.
Some couples have an expensive by default by the number of guests they have. Maybe you and your partner both have large families making it hard to avoid dropping serious cash on your big day. This might call for some outside help from a loan.
Ways to Cut Wedding Costs
If you don’t want to go the loan route, there are plenty of ways you can cut costs on your wedding. As you and your partner are trying to start a life together, the last thing you need is to be left in a tough financial place post-wedding. It is possible to have a frugal wedding that still fits your big day expectation. Here are some easy ways you can cut your wedding budget in half!