So you’re planning your wedding and you suddenly realize that you don’t have anywhere near enough money to pay for the wedding you want. Should you take out a loan to pay for your wedding day? These days, more couples are paying for their own weddings and often the wedding budget is smaller than would be desired. Taking out a wedding loan might seem like a good idea to help you cover your wedding expenses, but financing your nuptials may be more trouble than it’s worth.
Weddings are a multi-million dollar business, but that doesn’t mean you need to empty your bank account to have a nice one. Your wedding day should be special, and it’s ok to spend a little money on it, but make sure you don’t over extend yourself. You can have a nice wedding on a small budget. It is easy to get into the mind-set that this is a once in a lifetime event and no expense should be spared. This is the same mind-set that can get you in over your head. It’s all too easy to spend money you don’t have when you’re in an excited state. This is why so many Americans buy houses that are too big, cars that are too expensive, and end up deep in debt. When you buy what you want rather than what you can afford, you’re living above your means. Be careful and thoughtful about how much you can afford to spend on your wedding. Think about what will be important to you after the wedding. Nobody wants to begin their marriage with a huge debt hanging over their head.
Some couples know that they want a big wedding, but don’t currently have the cash on hand to pay for one. If you have good credit and steady income, you’ll likely be able to secure a wedding loan with a good interest rate. Just remember that you’ll be making those payments for the next few years. If you decide you absolutely need to have an expensive wedding, consider postponing the wedding until you can save enough to pay for it. If you decide to go ahead and take out a wedding loan, limit the amount that you borrow. Just because you qualify to borrow $25,000 doesn’t mean you need to throw a $25,000 wedding. Come up with a plan for your wedding, estimate your expenses, and set a budget BEFORE you go and apply for a loan. This will help you ensure that you’re only asking for the amount you need, rather than the maximum you can get. Wedding loans may offer better interest rates than credit cards, so if you plan to finance your wedding on a credit card, consider getting a loan instead. As with any loan, borrow from a reputable lender, be sure to carefully read the terms and conditions of the wedding loan, and ensure that the monthly payment is an amount that you feel comfortable with. Make sure that you and your future spouse are in agreement on this financial decision. Money is the number one topic of argument between married couples. Do you want to spend the next five to ten years arguing about your wedding debt?
If you have a poor credit history, unsteady income, or other financial burdens such as student loans or other pre-existing debt, a wedding loan is not for you, in fact it could be the biggest financial mistake you’ll ever make. While there are many lenders who will give you a loan (even with poor credit) you’ll likely pay higher interest rates and you’ll have to put any assets you own up for collateral. You’ll also have the added stress of making the loan payments hanging over your head. A better alternative is to elope, or to hold a small ceremony that you can pay for out of pocket. If money is tight now but you want a big wedding, consider getting married at the courthouse and then hold a reception when you have saved enough money to pay for it. Don’t put yourself in a bad financial situation when you’re starting your new life as
When planning a wedding, people tend to look to the wedding day, but they don’t pay much attention to what will happen after the wedding. When it is all said and done, you’ll have some great memories, awesome wedding gifts, and a piece of paper saying that you are legally bound to your spouse. That’s about it. A wedding is a major event in your life, but it is just one day of your life. Do you want be paying for that day over the next 5 years? I don’t care how much fun I had at my wedding, I wouldn’t want to still be paying for it years later.