The Washington Post reports that “Couples are taking out loans to pay for their weddings.” And while one person interviewed found that it wasn’t all that difficult to get a personal loan to pay for an engagement ring (adding that it might not be the only loan he takes out for his upcoming nuptials), he doesn’t question this decision because the loan meant he didn’t take away from his savings or investments. In his mind, a loan makes sense because it leaves his savings intact.
While that interviewee felt okay, “Financial planners say they’ve seen an uptick in clients who are tempted to take out loans to cover wedding costs. But, they say, they try to steer clients toward less expensive options, or to encourage them to put off the reception while they save.”
More people are getting married later in life and couples necessarily don’t expect their parents to pay for a wedding but the article gives examples of people and their families taking out loans for weddings and related expenses.
No one is saying you can’t have a wedding at all. However, you may want to think about ways to have a wedding or a celebration that does not involve taking out a loan. One couple who says they have no regrets has fond memories of their big day and told the Post that they are making monthly payments and want to pay off their loan before the two-year time period ends.
This increase in wedding loans comes a time when “The average cost of an American wedding is rising, according to financial advisers. At the same time, Americans have more student loan debt than ever before — nearly $1.5 trillion of it. They are saving less and spending more on basics such as housing, food and transportation.”
Whether you have plenty of money to spend on a wedding or if you are just throwing caution to the wind because you really want the wedding of your dreams, talk to a financial planner. A financial planner is not trying to put a damper on the joy of your big day but rather help to make sure you and your future spouse have the financial foundation to build the life you want together.