Weddings are expensive. The average couple paid roughly $29,000 in wedding costs in 2022. The costs of weddings have increased ever since due to inflation. This kind of money isn't accessible to many people, but does that mean that you shouldn't have your dream wedding?
Not really, no.
You might just have to work on a different way to pay.
People take out loans for all kinds of things and weddings are no exception. Is seeking out a loan for a wedding the right choice for you and your future spouse?
Keep reading to learn all about wedding loans and why you might be the perfect candidate to get one.
What is a Wedding Loan?
Wedding loans are basically just personal loans with the intent of being used for a wedding or wedding-associated costs.
A personal loan is one of the most popular ways to get the extra funds that you need in the short term. They're fixed-rate, meaning that your interest shouldn't go up during the duration of the loan.
The bill every month should never change, and paying it off should be predictable and relatively easy, similar to any other household bill.
That said, a personal loan isn't a free-for-all. You should know that you're able to pay the money back and you shouldn't take out an excessive amount of money. Remember, loans aren't forever. That money has to get back to the lender one way or another.
That said, there are some good reasons that you'd want to take out a loan for a wedding.
1. Personal Loan Debt is Better Than Credit Card Debt
Personal loans are, overall, better for your credit score than excessive credit card debt.
Debt is a scary word. Roughly 300 million Americans are in debt of some kind. Not all debt is created equal, though.
Credit card debt is often extremely high-interest, meaning that you'll end up paying far more over time than you actually needed for the wedding. For a short-term plan, this might not seem like a big deal, but this is a large expense that will require a lot of return payment.
You need to think about the long-term effects of the debt that you're accumulating. As mentioned before, the interest from a personal loan is consistent and generally lower than the interest from a credit card.
This means that you'll have less to pay off throughout your payback process. You'll also be less likely to spend frivolously as you'll have the set amount in front of you. You know how much money you're getting so you'll be less inclined to overspend.
2. You Don't Have to Wait for a Wedding
Are you in a rush to get married? There are a few reasons that you might be jumping the gun to tie the knot, but those reasons won't matter if you can't afford it.
People save up for years for the perfect wedding, but we don't all have the benefit of that much time (or even the ability to save that much money all at once).
A personal loan gives you all of that money in one big chunk. While you will be spending time later to pay it off (meaning that the "saving up" time will happen either way), you can do it in increments and the wedding won't be far off on the horizon.
Just remember that you will have to pay. You're putting that problem on future you, but future you might be more financially stable in a two-income household.
3. You'll Actively Improve Your Credit Score
Have you ever wondered how amazing it would be if the first chapter of your happily ever after also included a significantly improved credit score? Imagine starting your journey as a married couple with the confidence of knowing that you've successfully tackled your loans and debts, setting the foundation for a financially secure future.
Regardless of whether you've had a bumpy credit history or you're already in a relatively stable position, taking steps to enhance your credit can never go amiss. So why not turn this opportunity into a reality and pave the way for a stronger financial footing as you embark on this incredible new chapter in life?
If you want to buy a house or a car, or you want to be able to take out other safe loans in the future, a good credit score is essential. A newly married couple is likely looking at a house in the future. Wouldn't you like to make that process easier from the time you get married?
Just make sure that you're able to pay the loan back in time. You'll be raising your credit score in no time.
4. Vendors Require Deposits
A wedding is nothing without the various vendors and artists that make it come together. These people and businesses generally need a deposit ahead of time, though. That means that you need to have a pretty big chunk of change sitting around that you can access.
Photographers can require hundreds of dollars in deposit alone, if not the full payment upfront (which can be in the thousands). Venues need deposits to hold the space for you. Caterers often need deposits to know that their work isn't going to waste before the wedding actually happens.
If you have 10 different people or businesses to give deposits to all around the same time, you might need a wedding loan.
5. You're Paying On Your Own
Traditionally, the bride's family has shouldered the financial burden of the common wedding expenses, upholding a long-standing tradition that has been passed down through generations. However, in the ever-evolving landscape of modern times, this age-old custom has gradually become less prevalent. With increasing independence and financial stability, many couples are now taking it upon themselves to fund their own weddings, thereby reshaping the dynamics of wedding finances.
In this new era, individuals are not only organizing their dream weddings but also harboring the hope of recouping some of the expenses through generous wedding gifts from their loved ones. By embracing this shift, couples are able to weave together their personal stories, aspirations, and dreams, all while forging new traditions and celebrating love in their own unique way.
Whether you're paying for your own wedding, or you're a family paying for the wedding of a loved one, you won't need to reach out or crowdfund in order to have the ideal event.
Do You Need a Loan For a Wedding?
A wedding is a special day and you should be able to have everything that you want (within reason). Getting a loan for a wedding is quick, easy, and a great way to plan the event that you really want.
If you're in need of a wedding loan, visit our site and contact us. We want to help you pay for your special day.