Should I Take Out a Personal Loan to Pay for My Wedding?

A wedding is a wonderful celebration of love, family and friendship, but it can also be a headache. Without careful planning, the perfect venue, dress, flowers, décor, and food and drink for your friends and family can break the bank. According to The Knot Real Weddings Study, the average cost of a U.S. wedding in 2023 was $35,000, a $5,000 increase from the previous year’s national average (and that doesn’t include the honeymoon!). With prices rising due to inflation, weddings just keep getting more expensive. 

So, what makes a wedding so expensive? According to The Knot, the most expensive wedding costs in 2020 included:

• Venue: $12,800
• Engagement ring: $5,500
• Reception band: $4,300
• Photographer: $2,900
• Florist/décor: $2,800
• Rehearsal dinner: $2,700
• Videographer: $2,300
• Wedding dress: $2,000
• Event rentals: $2,000
• Catering (per person): $85 (If your guest list includes 100 people, that’s a whopping $8,500!)

And this doesn’t include some of the hidden, easy-to-forget charges like gratuities and service fees, all of which can substantially increase the cost of your wedding. 

Plenty of people don’t have that kind of cash on hand to finance their dream wedding. If that’s you, then you may be thinking you need to take out a personal loan to pay for your wedding. But are wedding loans a good idea? Here are some of the pros and cons to consider when you’re thinking about taking out a personal loan to cover your wedding. 

Pros of Getting a Personal Loan to Pay for Your Wedding

• If your credit score is in good shape, and you have a steady, good income, then you’re in luck: Wedding loan lenders will take your income and credit score into account when deciding whether to extend the loan to you. In these cases, a wedding loan is generally easy to secure. 
• If you’re torn between taking out a personal loan and financing your wedding with a credit card, it’s worth knowing that interest rates on your loan will usually be lower than on a credit card — especially if your credit score is good. 
• It’s relatively straightforward to get a personal loan to pay for your wedding — the application process typically only involves a little bit of paperwork. 

Cons of Taking Out a Loan for a Wedding

• Many people begin a marriage with outstanding debt such as student loans, car loans, a mortgage and more. If you or your partner (or both!) are already carrying debt, then you’re just adding to the pile, leaving you with extra payments to make for several years or more. Beginning your marriage with extra debt could add extra pressure to your relationship.
• Loans incur interest, which means that you’ll be paying off the loan for years — and the total amount that you pay out may end up being far more than what you borrowed. 
• If your credit score isn’t good, beware: taking out a loan for a wedding with bad credit can mean paying high interest rates.

Other Wedding Payment Options

Maybe taking out a loan for your wedding doesn’t seem like the right option. There are plenty of ways to have a beautiful, memorable wedding that you’ll treasure for a lifetime without breaking the bank or getting into more debt.

Consider a Longer Engagement

Slowing down can mean extra time to put money away for your wedding during your engagement.

Ask Your Community to Pitch In

It’s not everyone’s style but consider whether it’s worth rethinking the “must-haves” of the standard wedding. Perhaps a friend or family member possesses a skill like cake-baking or photography that they’d be willing to give you to celebrate your marriage. Or maybe you’d like to have a potluck at your wedding or ask friends to compile a wedding playlist for the dance floor. Not only will you be reducing expenses, but you might just discover the event is even more memorable because of it. 

Create a Wedding Budget and Stick to It

It’s easy to inflate your budget as you go through the planning process. Instead of booking an expensive outdoor venue, you could go with a quiet backyard wedding, or instead of a live band for the reception, you could consider a DJ. 

• Downsize your guest list. It’s always hard to cut people from your guest list but opting for a smaller wedding may be one way to have the day you’ll cherish while saving some cash. A more intimate wedding could be followed with a large picnic or party in the future so you can celebrate with all your friends. 
• Shop around for the best deals. Time is key. Securing a vendor farther out from your wedding day can mean more choices and more opportunity to compare prices. 

Being flexible can go a long way toward creating a wedding that reflects your individual tastes and is memorable to all of those in attendance. And remember: your wedding day will be special no matter what you choose because you are surrounded by people you love, and you’re beginning a lifetime of memories with your special person. 

Fund Your Future

Planning a wedding can be a good exercise in making tough financial decisions as a couple. As you think more about your finances as a married couple, it’s a good idea to connect with a Farm Bureau agent to discuss your future and ways we can work together to protect it.