Is a Personal Loan a Good Way to Pay for a Wedding?

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Tying the knot? Read on to see if a personal loan is a good way to finance a wedding. 

If you’re in the process of planning a wedding, you may be overwhelmed and excited at the same time. But you may also be wondering how on earth you’re going to pay for the big event.

In 2022, the average wedding cost $30,000, according to The Knot. And even if you’re willing to trim some costs, you might still be looking at a five-figure bill by the time all is said and done.

When it comes to throwing a wedding, your best bet is really to keep your costs down enough to cover them in full and avoid debt completely. But that may not be realistic.

If you have a large family, for example, then cutting your guest list might be tough. And if you’ve always dreamed of having a certain type of wedding dress or venue for your wedding, then you may not want to compromise on one of the most significant days of your life.

As such, it’s fairly common for people who are getting married to borrow money in some shape or form. If you’re going to go this route, a personal loan is generally a far better option than a credit card. With the latter, you might end up getting stuck paying a huge amount of interest. But just because personal loans are a more affordable option for borrowing doesn’t mean you should go overboard, either.

Aim to keep your wedding expenses in check

It may be that even if you’re willing to compromise on some of your wedding-related must-haves, you’re still looking at a $15,000 tab. If you only have $8,000 in your savings account to cover your wedding, you might have to borrow the rest.

A personal loan lets you borrow money for any purpose, so taking out one of these loans to pay for a wedding is doable. And if you have great credit, you might snag a relatively competitive interest rate on your personal loan, making it more affordable to pay off.

But if you’re going to go this route, do your best to really set priorities when it comes to wedding costs and try to keep the amount you borrow to a minimum. The more money you borrow via personal loan, the more interest you’ll end up accumulating, and the higher your monthly payments for that loan will be.

What’s more, if you borrow too much money to finance your wedding, it might easily put a strain on your budget once you and your spouse start your life together. And if you’re worried about money constantly, it might put a strain on your marriage.

Set priorities and go from there

You may not want to compromise on your dream wedding dress or cake. But if money is tight and you’re already looking at borrowing to pull off your wedding, order your expenses by priority and consider cutting those that aren’t as important to you as others.

If you’re not someone who loves flowers, for example, skip them. You can enlist the help of a crafty friend to make centerpiece arrangements that don’t cost a whole bunch of money. And if you’re not all that picky about your band, hire your cousin and their college friends who like to jam in their garage for $500 rather than pay a local band five times that much or more.

You deserve a wedding you cherish and remember forever. But you don’t want to end up loaded with debt in the course of pulling it off. And even though personal loans tend to be an affordable way to borrow, you want to be careful not to get in over your head.

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