Couples Choose Wedding Loans Despite Financial Advice

Some couples still choose to take a wedding loan, despite the double-digit interest rates that come with these loans. The average cost of a traditional wedding is hovering around $40,000, and the figure can be significantly higher in large cities.

Couples who are considering marriage should think twice about taking a loan to cover the cost of the wedding. In years past, the bride’s family paid for the wedding, but weddings were much simpler events. Couples who paid for their own weddings normally invited family members and a few close friends.

With larger ceremonies, couples have not only taken on the responsibility of planning the wedding, but also the responsibility of paying for the event. Paying for a large wedding sometimes flies in the face of sensible financial planning, but experts almost universally agree that borrowing to pay for a wedding is a bad idea. Aside from starting out married life in debt, couples can end up paying significantly more for their wedding ceremonies if they also pay high interest rates on top of the cost. If couples also have other debts, such as student loans, mortgage debts or credit card debts, paying for a wedding loan on top of these other obligations can seriously strain a couple’s finances.

As alternatives to paying for a large wedding, couples may consider eloping. This may be the most financially responsible alternative, especially if they take the money they would have spent on the wedding and reception, and invest it instead. Other couples who have their hearts set on a larger wedding may choose to delay marriage until they have amassed the needed capital to pay for the ceremony. A significant number of couples choose this route, although a recent study by ING Direct of UK couples showed that as many as 15 percent of engaged couples had indefinitely postponed their weddings due to costs.

A third alternative is to have a simple, small ceremony. By scaling down on the guest list, couples can reduce the largest expense associated with a wedding – food costs for the reception. Holding the wedding and reception on a Friday evening, or having a daytime ceremony and lunch reception can also significantly reduce costs.

Keywords: Wedding Planning, Weddingblog, Wedding

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