Planning a post-pandemic wedding? Here’s what you need to know before borrowing to pay
The COVID-19 pandemic has made it very difficult, if not impossible, to hold public weddings for people for much of 2020. Now, however, with vaccines widely available and lockdowns lifted across the country, celebrations of marriage resumed.
If you are planning a post-pandemic marriage, you may be considering taking out a loan to fund it. But before you decide to borrow, there are a few things you need to consider first.
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Weddings can get very expensive
According to research from The Ascent, the average cost of a wedding in 2019 was $ 33,900. That’s a lot of money – enough to buy a new car. If you don’t have a lot of money set aside for your wedding, going all out could mean borrowing a large amount – and that could be a challenge to pay off.
Before you decide to borrow, get an idea of your total costs by putting together a detailed wedding budget. Then, to determine how much personal loan you can afford, research the cost of borrowing to see how much your monthly loan payments will be and how much interest you might end up paying over time.
Once you understand the full Picture of how much a loan will cost you, including the interest paid over the life of the loan, you will be able to decide how much money you are comfortable spending on a big party.
Different borrowing options are available
Many people refuse to get “wedding loans” when borrowing for their wedding. This is a specific type of personal loan intended for couples who are getting married. But there is no reason to only apply for a marriage loan. Any personal loan should cover your costs because lenders allow you to use the money for anything you want.
You can also look for other borrowing alternatives. For example, if you plan to borrow a smaller amount and pay it off in about a year, you can use a 0% APR rate credit card. This gives you the flexibility to charge for your wedding items and refund them while the 0% rate is in effect so that you pay no interest.
Make sure you compare all of the different sources of wedding finance available so that you can choose the most affordable loan for your situation.
Loans can affect other financial goals
Finally, it’s important to consider what your monthly payments will be after the wedding and think about how your personal finances might be affected. Marriage is only the beginning of a shared life with your partner. You might want to buy a house together or start a family, which can get expensive.
If your wedding loan payments are affecting your ability to do other things, then you may decide to borrow less, even if it means having a smaller marriage. You could set yourself up for a lot more success moving forward as a couple if you make sure that you don’t borrow more than you can comfortably afford.