Planning a 2021 wedding? A loan could help you cover your costs
Weddings can be very expensive. Should you borrow money to pay for one?
Getting married can be expensive. The average cost of a wedding in 2019 was $ 33,900 – that’s enough money for a down payment on a house in some parts of the country!
Of course, the amount you spend on a wedding will depend on several factors:
- The number of guests you have
- The moment of your wedding
- The professionals you hire
- The place you choose
Unless you are planning a business on a very low budget, you can expect to spend a considerable amount of money. And if you don’t have that cash on hand, borrowing might seem like your next best bet.
You have several choices if you want to borrow to finance a wedding. You could put some of your expenses on a credit card and pay them off over time. Or, you can take out a personal loan and do the same. Here’s why this last option really makes the most sense.
Ascent’s choices for the best personal loans
Why a personal loan might be a good choice for your marriage
Let’s be clear: in an ideal world, you wouldn’t have to borrow money to pay for your wedding. When you borrow money, you sign up to pay interest and run the risk of falling behind on your debt, which could hurt your credit score. But if you really can’t rock the cost of a wedding and you don’t have a family member who can give you a loan (which, let’s face it, a lot of us don’t. ), then a personal loan is usually your best option.
A personal loan allows you to borrow money for any reason. And unlike, for example, a home equity loan, which uses your home as collateral, personal loans are generally unsecured. This means that you will need a reasonably high credit score to qualify. There are also personal loans for borrowers with poor credit who charge higher interest rates.
Personal loans are repaid in equal installments over time, and you are usually not penalized if you want to pay off one sooner than expected. The predictable nature of these payments, coupled with more reasonable interest rates, make personal loans a good option. Better than financing a marriage with credit cards, the interest of which can be variable, even scandalous.
That said, before you apply for a personal loan for your marriage, see how much you can cut your costs. You may be able to limit the amount you need or even avoid having to borrow money. Some options to consider:
- Cut your guest list. You don’t need to invite second cousins you barely talk to.
- Consider a weekday wedding. Your guests might be tired the next day, but you could really save a bundle.
- Hire friends to replace salespeople. You don’t have to hire a professional photographer if you have a buddy with a great eye for photography. It could save you thousands.
- Make your own centerpieces. It will be much cheaper than paying for flowers.
- Avoid the chic wedding cake. These cakes are often not as good as they look, and you can save money and offer more variety with a small dessert buffet.
If you’ve spent half your life dreaming about your wedding day, surely you want to make it happen, even if it means spending more money than you have to. If so, a personal loan could be a good bet. Just make sure you understand the terms of this loan so you don’t get lost in your head.