When is a Wedding Loan the Best Option?

Many couples are considering wedding loans due to the high cost of modern wedding celebrations. The total cost of weddings may range from $20,000 to $100,000 depending on the area where you plan to get married and the number of guests you intend on having. If you have not put money aside for this extremely large purchase, you may have to opt for a small wedding or pursue a loan to have the wedding you truly want. 

You Insist on a Traditional Wedding

The first thing you need to consider is whether or not you absolutely must have a large, traditional wedding ceremony and reception. Many couples look at the huge expense as an unnecessary luxury. They feel the celebration is not as important to them as the simple act of marriage, and they are just as happy with a family party or a trip to city hall. Other couples feel they will be depriving themselves of an essential rite of passage if they do not have a wedding. They believe this is their one opportunity to share their love and promise with their friends, family and community. Essentially, ask yourself if you will regret not having a wedding ten years down the line. If the answer is "yes," you should consider wedding financing as a way to give yourself the celebration you deserve.

You Will Pay Off the Loan Soon

Just because you will treasure your wedding memories forever does not mean you want to be paying for them for years to come. Do not seek financing that you cannot pay off in short order. Remember: this loan will not help you build an asset. Once the money is spent, the day is over, and you cannot get the money back. With a home purchase, you will get the money you pay to a mortgage back when you sell the home. Because a loan for your wedding will not build your personal equity, determine a reasonable budget you can repay soon.

You Are Not Seeking Other Loans

If you and your fiancé(e) are going to be seeking a home loan soon after your wedding, wedding financing may not be the best option. Having a large amount of outstanding debt is not a good mark on your credit score when you go to apply for a mortgage. If this is your only loan, you will not suffer as much as if you already have large amounts of debt. Conversely, if it will be a few years before you seek another loan, taking out and paying off a wedding loan will build your credit for the future. 

You Cannot Cut Corners

Look at the options to make your wedding more affordable. Consider buying a used dress, having a cash bar, utilizing an ipod instead of a DJ, and inviting less guests. Having the reception at a parent's house or friends house can also cut costs. While this may not be the wedding you envisioned, remember the total cost of financing will drive up the cost of your wedding even more. Think about your priorities, and see if you can cut corners. 


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