If you’re envisioning a lavish wedding with a hundred guests, posh favors, and a grand venue — you’re not alone. However, to achieve the dream wedding, most people would resort to borrowing.
The real trick lies in figuring out how to foot the bill for your dream day. This is where you might hit a roadblock. It might seem tempting to opt for a personal loan to cover those wedding expenses, but before you commit, here’s why you should think twice.
Wedding: A One-Day Affair
While you might extend the celebrations over a weekend, it’s important to remember that a dream wedding is a short-term financial commitment.
Just as it’s inadvisable to borrow money for a vacation or any non-essential expense, taking out a loan for your wedding may not be the best choice.
Starting Married Life with Financial Stress
Marriage comes with its challenges, and voluntarily adding financial stress to the mix may not be the wisest decision.
It’s smarter to save and plan for big goals while also building an emergency fund for unforeseen financial needs.
If you choose to finance a $30,000 wedding over five years at an 11.31% interest rate, you’d be paying $657 per month and ultimately cough up over $9,400 in interest alone. That’s a significant amount of money that could be better used elsewhere.
The interest on the loan itself could serve as a sturdy emergency fund. Furthermore, if you find yourself unable to meet those loan payments, the resulting damage to your credit score can add even more stress to your finances and your marriage.
Avoid Borrowing for Your Dream Wedding
Start Small – Consider scaling back the guest list and opting for a small, intimate wedding with your closest loved ones. Host a more budget-friendly backyard barbecue later to include everyone else in your celebration.
Prioritize – See if you can cut back on other expenses, such as wedding favors or the venue. Opt for a free outdoor ceremony, serve hors d’oeuvres instead of a full-course meal, or hire a DJ instead of a live band.
It’s entirely normal to desire a special wedding day, and you’re certainly not alone in that sentiment. But before you commit to a significant loan to finance a one-day event, consider all factors carefully. Your financial well-being and marital bliss may depend on it.
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