A wedding is a joyous occasion…and for many people, an expensive time as well. From photographers and venue fees to a cake and an open bar, an average wedding can cost well over $30,000 — and that amount does not include an engagement ring or a honeymoon! For many couples or their parents, that amount is simply out of reach. If you are planning a wedding, consider a personal loan as an option for paying for your big day.
A personal loan can help you finance the wedding of your dreams. Personal loans can be used for almost anything, including wedding expenses. While you may see these loans advertised as “wedding loans,” they are really just personal loans used for a wedding. These loans can be secured — using personal property, like a vehicle, as collateral — or unsecured. Secured loans will typically have lower interest rates. Depending on the lender, a wedding loan can be made in amounts up to $35,000. Once approved, a lump sum will be released to the borrowers. The amount is repaid in installments over a set period of time (usually three to five years).
Paying for your wedding with a personal loan can help you have the wedding that you want, without draining your savings or using high interest credit cards. It can also help ease the financial strain on your parents, by covering at least a portion of the costs. A personal loan can be used for any of your wedding expenses, from favors to a wedding dress to a honeymoon.
But before you apply for a personal loan, take a close look at your wedding budget. Starting a marriage in debt can put an enormous strain on your relationship, and can make it more difficult to achieve other goals like buying a house or starting college funds for your children. Be realistic about what you can actually afford, and get creative to have a fantastic wedding without breaking the bank. You may consider having heavy appetizers or a buffet instead of a more expensive sit-down dinner, for example, or finding less expensive centerpieces for the tables. Forego wedding favors or a limo, find a less expensive wedding dress, or set up your iPhone with speakers instead of hiring a DJ or band. By making smart choices, you can go into your marriage on secure financial footing.
Once you have a sensible wedding budget set, consider applying for a personal loan for the costs you cannot cover out of pocket. A fixed interest rate — typically lower than most credit cards — can help you pay for your wedding over an extended period of time with monthly installment payments. Review these interest rates and the monthly payment amount to figure out if you can really afford the wedding that you want — and revise your budget to land at an amount that is reasonable for you.
Using a personal loan to pay for a wedding may not be the right choice for every couple, but it can help you make sure that your big day is special. Contact us today to find out if you qualify for a personal loan!