The dress, the flowers, the venue, plus food and drinks for every single one of your wedding guests can easily overdraw your bank account in no time. That’s why so many couples consider paying for their big day using a personal loan. Once you start adding and subtracting numbers, it’ll be hard to stay on a budget. You will soon realize the endless and expensive items you must consider for that day.
The average cost of a U.S wedding is around $34,000 and this doesn’t include an average honeymoon! So, if you’re considering paying your wedding by taking out a personal loan, here are the pros and cons. After all, this is the big day you’ve dreamed and waited for your whole life. You better do it right.
- A great advantage with a personal loan is that you pay a set amount every month for a specific amount of time. It allows you to have a clear beginning and a clear end. No unfortunate surprises along the way.
- Interest rates are usually lower on a personal loan than the average rate on a credit card.
- The application process is often fast and easy. Typically, if you are approved, the money will show up in your bank account in just a couple of days.
- Paperwork is usually straightforward. They will request items like proof of income, bank statements, and information on any other debt you have.
- With money in the bank, you can relax and focus more on planning what is supposed to be the happiest day of your life.
- A good way to describe a personal loan is: it can dig yourself out of a hole, but it can also become a bigger hole. Make sure you know exactly how much you need and for what. It is easy to be seduced by the ease of the process.
- Make sure that the monthly installments fit within your budget. Do good previous research and compare the different loan rates being offered.
- You’ll probably be paying off that personal loan for several years.
- You’re starting off your new married life in debt. This might not be the best idea considering the other financial obligations you had before, and those about to come (student loan, mortgage, car, etc).
Before you take a personal loan for your wedding, consider other options or ways to reduce the expenses. The best way to minimize the debt (or the idea of going for a loan) is to minimize spending. This can be done with proper planning and preparation. Remember that your day will be special no matter what. What is important is to share this moment with all of your friends and family.