Are Wedding Loans a Good Way to Cover Your Wedding Costs?
Are Wedding Loans A Right Choice For You?
Weddings are expensive. If you're like me, from the time you were little you were planning your wedding. You probably even knew who you were going to marry before you were 7. Even though those marriages didn't come to pass, your dream wedding can.
But is it worth taking on debt over? Are wedding loans right for you?
There is no hard and fast rule here. It depends on your personal situation. The average wedding costs around $30,000. As with all loans, your ability to pay back the loan should be the focus.
Think realistically about a wedding loan
Don't cover your eyes with lace and string lights hoping for the best. Be strategic because money problems are the number 1 relationship killer. You don't want to start your relationship out with the stress of money problems.
If you can pay back the wedding loan without struggling, then taking out a loan might be a good choice for you.
Do both of you have a job? If not, is one of the incomes great enough not to struggle with the wedding loan repayment?
Sit down and figure this out before you even begin to plan your wedding or look at Pinterest and Instagram for wedding ideas. You want reason over emotion.
Who is giving you the wedding loan?
If you have some blemishes on your credit, be aware that this will cost you in high finance fees. There are plenty of predator loan companies that will entice you into taking out a loan even when they know it is not in your best interest.
If you really need a loan, consider going to family first. Loans and families can end badly. Please commit that no matter what, you will pay back the loan in the agreed upon terms. Write up a document stating the terms of the loan and both of your sign it.
Make two copies, one for each party and keep it some place safe. Money is not ever worth ruining a relationship over.
There are other ways to be able to have your dream wedding:
Figure out your wedding budget. You can use Mint (a free budgeting tool) to track and plan your spending.
Get married a little later than you want. Push back the date in order to save more money. Be really tight with your daily spending and look at where you can cut excess expenses for 6 months or so.
Hire a wedding planner. Seriously. We have connections to make the best deals. Not only that, we can help you make a budget and stick to it by cutting out unnecessary items you wouldn't know to cut out.
Find areas where you can reduce wedding expenses. Have your invitations printed on lesser quality paper. Have an open bar for certain hours only. Consider buying a used wedding dress. This is where the skills and creative nature of a wedding planner really shine.
You may find you don't even need to consider a wedding loan after doing these three things.
Every wedding is unique and every decision is based on give and take. The decision to take out a wedding loan is personal. Just make sure you examine all the angles before making a decision.
If you have any questions, feel free to contact me.
Davy Ramsey is hard core about not overspending. wedding planning questions and answers