13 Jan

Is It Worth Taking Out a Loan to Pay for My Wedding?

Is It Worth Taking Out a Loan to Pay for My Wedding?

Wedding costs are skyrocketing in Australia and across the globe, with the average Australian wedding now reaching an eye-popping $65,482. While many wedding couples never come close to that sum, paying for a wedding can be a real struggle for families. A wedding loan is an increasingly popular solution, but many people wonder if it is truly a good idea.

What Is a Wedding Loan?

A “wedding loan” is actually a personal loan that you borrow either from a bank or a peer to peer lending club. Wedding loans generally have fairly low interest rates, depending on how good your credit rating is, and payments typically stretch for three to five years. If your overall debt load is low, you might qualify for tens of thousands of dollars. You might even be able to roll the cost of the honeymoon into the loan. Just because you can, though, does not necessarily mean that you should.

Alternative Ways to Pay for a Wedding

Many people have savings accounts that they can tap to pay for their wedding. Even if you are starting out with little or no savings, a year-long engagement allows you to save up a reasonable amount towards your wedding. Cut out unnecessary expenses such as a daily coffee stop or lunches out. Find other ways to trim your budget, perhaps by shopping sales or preparing your meals from scratch. Consider taking on a second job. Open a savings account that is specifically earmarked for your wedding, and put every extra dollar into it.

Find out if your parents or other relatives are willing to pay for a portion of your wedding. Crowd sourcing for wedding costs can feel like a money grab, but many parents and grandparents are eager to help out. Approach them diplomatically, make specific suggestions (such as the dress or the reception), and be willing to take “no” for an answer.

Some people use credit cards to pay for their wedding, but this is usually a bad idea. If you must use credit to finance all or part of your wedding, a wedding loan is generally a better option, because interest rates are usually much lower. The exception is if you need to book vendors while you are actively saving money. It might make sense to pay deposits on a credit card and then pay them off as soon as you have saved enough cash.

Conserving Costs

The most responsible option is to scale back the wedding to something you can afford without going into debt. Hold a backyard wedding at home rather than paying for an expensive venue. Serve hors d’oeuvres rather than a full meal, or do the catering yourself. Look for a vintage wedding gown rather than a brand new one. Figure out what elements are truly meaningful and important to you, and which ones you can easily let go of. Shop around and be sure you are spending your money wisely rather than getting caught up in the sales pitches of high end wedding vendors.

The Bottom Line

Your wedding is your big day, and you deserve to create memories that will last a lifetime. However, many bridal couples forget that the day is all about their wishes, and let themselves become overwhelmed by what friends, relatives, and bridal magazines tell them they “should” do. Take a deep breath, walk away from the planning, and tune in to what you actually want from the day. You might find that it is not nearly as extravagant and overblown as you originally thought.

If you can pay for a wedding that you genuinely love without going into debt at all, it will be for the best in the long run. Ultimately, a wedding is a half-day event, while the marriage will hopefully last a lifetime. Therefore, it is better to save the money toward beginning your life together.

Still, if you simply do not have the cash in hand to pay for a wedding that makes you happy, there is nothing wrong with borrowing some money. Be careful not to overextend your budget, taking on only as much debt as you are certain that you can repay. Paying for a wedding is a careful balancing act, and only you can decide what is right for you.

At Betta Party Hire, we are here to help. If you desire personalised assistance, please phone us on 1300 472 793. Our dedicated wedding team (Jan and Damian) will be delighted to share our knowledge and recommendations for trusted professionals who can help you ensure that each aspect of your special day is perfect.