According to recent estimates, the average cost of an American wedding is around $33,300. It’s important to remember that you do not have to spend exorbitant amounts of money to have a memorable and meaningful ceremony. Nevertheless, many people feel compelled to spare no expense for their big day– and honestly, who can blame them?
So, if you’re planning to make your wedding and after events something to remember, then you’re probably feeling motivated to invest quite a lot of money in the experience. That’s understandable. But if you’re like most people, dropping tens of thousands of dollars is not something that can be done casually. If you’re like most people in this situation- you’re probably considering a “wedding loan.”
It’s not as uncommon as you might think. So, let’s go into some detail and get a handle on this topic.
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What is a Wedding Finance Loan?
This is a term that gets thrown around a bit. But the truth is, there really isn’t any such thing as a “wedding loan.” You take out a loan, as you might do for any other large expenditure, and you spend it on your wedding. It’s as simple as that.
If anything makes wedding loans different from other loans it is the fact that you are not investing in something that is going to return your investment in the form of capital gains. That is to say, you’re not investing in an education, building a business, or acquiring resources that are going to help you make money.
For this reason, many financial counselors will tell you not to take out a loan for your wedding. The problem with taking out a personal loan to pay for a wedding is your wedding is not going to make you any money to pay the loan back with interest- unless you’re marrying into the royal family. This means that you should take the option to access funds this way and for this purpose very seriously.
our first move should be to decide whether or not you will be able to repay the loan using your current rate of income.
What to Consider Before Taking out a Loan for a Wedding
Considering the fact that a lack of financial solvency is a ranking cause of failed marriages, spending money you don’t have is not a terrific way to start a marriage. So, when you’re shopping around for your wedding loan- look for the best terms and rates you can find, (naturally). But as you’re weighing the merits of one loan compared to another, take the time to calculate into the future and based on minimum expected earnings, determine whether or not you are going to be able to repay the loan while maintaining an amenable quality of life.
If you can pay your loan back, but have to go into full austerity mode after the wedding, your new bride might not be terribly impressed with her life choices. Talk it over with your spouse to be and decide if living like paupers for a few months to a few years is worth making your wedding into a major event.
Different Types of Loans for Wedding Expenses
Online Personal Loans
These can be obtained quickly and easily in most cases but often do not offer the best terms available. Your experience may differ, but in general, these loans are suboptimal compared to what you might get from your local bank or credit union.
A Home Equity Line of Credit
Interest rates on loans like these can be better than others since the collateral is so valuable. The key here is to not overextend yourself since a marriage without a home is not ideal.
Using a Credit Card
This is a good way to build up credit which can be quite good for your marriage over time. Compare your credit card’s APR to other loan products before going forward.
Prolonging Engagement and Saving Money
Naturally, this is probably the best option. Waiting another year can help ensure everyone is