Post # 1
I am in the early stages of planning my wedding. The other night the Fiance and I were talking about budgets and how people pay for weddings. My fiance and I are young, 24 and 23 respectively. My fiance graduated with a bachelor degree almost two years ago and has been working full-time ever since. I am currently in my last semester of graduate school and will start full-time employment in September 2013. There are a lot of details into our personal finances, but to make this short:
-we plan to pay for the majority of our wedding (65-80%)
-we don’t have much (close to nothing) in our savings that can currently be devoted to the wedding.
-once I start working as well, we will be able to save a minimum of $1,100 a month (up to $1,500 a month).
-We are getting to the point where we will need to start putting down payments on a reception venue and/or caterer, etc.
The Fiance and I talked briefly about doing a personal loan for around $5,000 (25% or less of the full budget) just to help with the down payments and stuff that will need to be paid for before I start work. Personally I hate debt and don’t love the idea of doing this. Currently we have very minimal debt, and I want to keep it that way! I am the finance person in this relationship (I’m an accountant) and I am determined to make it work.
I was curious as to people taking out personal loans to help pay for the cost of their wedding. Do people actually do this? Any of you bees out there done this? If so, what made you decide to and what % of the total wedding cost did you take the loan out for?
Post # 3
@pinksprinkles: We considered it for about a second, but we really REALLY did not want ANY debt for our wedding. The difference for us is, my parents gave us about 3k when we first got engaged, and that covered the deposit on our venue. I think, if you figure out where you want to get married, and you really really cannot afford that deposit (which is the only thing you should have to put a deposit down on early in your planning) then I would take out a loan for that amount only.
Good luck, guys!
Post # 4
My fi suggested this but there was no way I wanted to acquire debt to get married. My suggestion save the money, have a wedding you can afford. You may have to save for a while before you put deposits down but at least you won’t have unnecessary debt.
Post # 5
What would the interest rate on the loan be? $5k isn’t bad (in my opinion, but obvi depends on your income). It’s not like you’re taking out a $25k loan.
Post # 6
I wouldn’t. I don’t like debt. Especially for something with no return on investment (like student loans or mortgage). I would cut back on the wedding or push back the date before taking on debt. Especially since you said you didn’t have any real saving to fall back on if something happens.
Post # 7
What’s the rush to get married? Why not save up until you can afford it, since you’re young? Then you don’t have to get out a personal loan.
Post # 8
No, I would not take a loan out for a wedding – basically a great party where I feed lots of people. We anti debt also, and don’t even take out car loans.
Post # 9
I would LOVE to do this, but I know that we would have a lot of trouble paying it off…not to mention even getting the loan in the first place, b/c of past awful money decisions. I wish somebody had talked to me about money and debt when I was younger! If you know that you will be able to make payments on time and keep up with it, then I think it would work for you…especially since you are an accountant!
I think that a lot of people are terrified of the word ‘debt’, and rightfully so, but it doesn’t mean that you can’t be responsible about it. It’s not like you’re racking up credit card bills on shoes and electronics!
Post # 10
@MrsWBS: As a numbers person, an interest rate would make or break this. Since this was all just sparked from a conversation with the Fiance, we haven’t even researched loans or rates. Income wise, we would be able to pay back this personal loan as soon as I start working.
Regardless though, I have to agree with all you bees, I don’t want to incur debt on a wedding.
Personally, I am leaning towards not doing the personal loan, but Fiance thinks it is the only way to do it. I will just need to work some magic with our current finances and show him what is possible.
Post # 11
@peachacid: No hurry here, we have been together for a little over 5.5 years and have known for several years that we were “it” for each other. We always said we would get married after we both finished school. To be honest, doing the wedding in 2014 is a bit of a bummer because we both can’t wait to get married!
Thanks for all the responses!
Post # 12
- Wedding: October 2011 - Bed & Breakfast
Going into debt to throw a party is not the most responsible thing you could do. It costs $100 or so to go to the courthouse and get married. All of the rest is unnecessary. It’s nice to have when you can afford it, but it’s really not necessary if it requires debt.
Post # 13
@pinksprinkles: don’t go into debt to get married, scale down your wants and/or guest list, change the time of year to off peak like winter to save on money, make it work with the budget you have, or wait another year or two to get married to save up the funds.
Post # 14
i would never consider this
Post # 15
I would only take out a loan IF you could get a ridiculous low rate/0% for so many months. Taking out a loan for another other than a huge purchase is just a bad idea. My sister took out a 15K loan for her wedding in 2009 and is still paying on it. By the time she is done she will have ended up paying the bank 20K.