Disadvantages of Wedding Loans

Wedding loans make it possible for people to have the wedding of their dreams, however they are not without their disadvantages. If you are wondering whether or not to get a wedding loan, consider the following.

  • Most loans taken to pay for a wedding are unsecured. Terms are usually shorter, 12-48 months, so monthly payments will be higher.

  • Some lenders will charge very high interest rates on unsecured personal loans like wedding loans. This can reach nearly 30%.

  • Your loan will only add to any other debt you currently carry. Beginning a marriage in high debt can cause martial problems.

  • Monthly payments on your wedding loan can reduce the amount you can afford to pay on a mortgage. If you plan to buy a home, you may be approved for less than you would if you did not have debt from the wedding.

  • Your wedding may go over budget. If you do not plan for all of the details, you may overspend your loan, which will make it difficult to find the money to repay.

  • If you are taking out a loan because you cannot afford the extravagant wedding of your dreams, you are without a doubt spending money that you don't have. It is easy to become emotional and borrow more than you can afford to repay.

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