(Closed) Taking out a wedding loan?

posted 10 years ago in Money
Post # 3
Member
754 posts
Busy bee
  • Wedding: May 2008

We "made it work".  My husband and I would have eloped before taking out a loan for the wedding.  It never would have crossed our minds.

Post # 4
Member
112 posts
Blushing bee
  • Wedding: September 2009

So, based upon your title, I assume that your "plan" includes getting a loan?  If so, I would be curious to know (in general terms) the size of the loan?  What are your circumstances, etc.?

On first blush, I would probably say not a good idea, but maybe a little more info would help explain your situation.   

Post # 5
Member
146 posts
Blushing bee
  • Wedding: September 2008

With the economic situation it may not be the wisest and actually may be really hard to get a loan. I would recommend against it because it’s not worth being in debt after your wedding. There are so many other things to think about after the wedding like furniture, place, etc (unless you’re already settled in), that it would be better to work within your budget. You can always negotiate with vendors.

Post # 6
Member
2004 posts
Buzzing bee
  • Wedding: November 2008

My parents are paying for our wedding (we’re really lucky). I think taking a loan out for your wedding is generally a bad idea. Especially in this economic climate getting a good interest rate will be difficult. What interest rate would you be getting on the loan and how much would you be borrowing?

I took out a personal loan from Bank of America a few years ago in extenuating circumstances and the total APR was 49%. Yes, I typed that right, 49%. However if you belong to a credit union you might have access to a much better rate. Nevertheless, borrowing money at such a high APR may be like trying to climb out of quicksand–you just end up sinking in deeper. I don’t think it would be worth it to get your "dream wedding" at the cost of a potential financial nightmare.

Instead of getting a loan it might be possible to make cuts elsewhere in your budget. Do you have recent student loan debt? Student loans often offer variable repayment plans. You may be able to pay less on your student loans now (with the anticipation of paying more later) and thus save a little more cash for the wedding.

Otherwise, lots of brides have been able to have spectacular weddings on very little money. Even a few thousand dollars can make an excellent "traditional" wedding—complete with wedding dress, flowers, reception, etc. 

Post # 7
Member
1813 posts
Buzzing bee

We are not taking out a loan.  My parents are giving $6k & his are (only, not being rude but just explaining) doing the rehearsal dinner.  We are just cutting back on other spending.  Our "worst case" plan was to do a 0% interest credit card & pay it back before the interest started. 

A lot of the finance terms (especially credit cards) mislead you with the percentage they show.  I’m taking econ right now, and it is explaining how you actually pay much more than they show you, based on the way interest is calculated (monthly, not yearly, etc.).  

With the economy as is, do you have enough to live on for 6-8 mos if you lose your jobs?  If not, do not get a loan for the wedding.  Either wait longer, or cut back, possibly by having a cake/cocktail only reception.  Even though we both make good $, we are actually only doing a minimoon until we can save for a bigger trip after wedding expenses.

Post # 8
Member
293 posts
Helper bee
  • Wedding: November 2008

I would like to address your actual question about getting a loan.

OBVIOUSLY no one would think it a good idea to get a loan for anything that is non-essential but that is not your question.  I think wedding loans are much more common than you would believe.  I can tell you in a certain culture (I wont say) but I know because I have many friends–they almost always get a loan or someone to float it because they know they will recoup a lot of it in gifts,

 There could be many other reasons why it might make good sense- you are expecting a settlement or promotion.  Even if your reasons are not sound to a banker (or Suze Ormond for that matter) I am not about judging your reasons.  Some people get loans to adopt babies or to have in-vitro or to buy a house or a million other things that others would disagree with.  I could also imagine if you just finished a long academic career and you knew you would be making money soon–or even if you didnt.  I have to assume you want this wedding, so I say how is it any different from wanting a car you cant pay cash for?

 It is true that some brides can manage on just a few thousand dollars but I wont assume that you dont only need a few thousand dollars.   I dont have any sound advice for you on HOW to finance your wedding but if someone does, please weigh in, because I am sure others would want to know are are afraid to ask!   

Post # 9
Member
62 posts
Worker bee

Our parents didn’t help at all in paying for our wedding.  We took out a loan- $4000.  That covered everything but our rings, and we are having a beautiful country club wedding+reception for 115 people. With the economy this bad, I’m not sure I’d do it again, but it worked for us.  My advice would be to DIY everything [invites, flowers, etc], search for a discount dress and suit, and borrow as little as possible, if you must.  The only reason we went up to $4000 was that we knew we’d be getting that much back in January as our tax refund.

Hope This Helps :]

Post # 10
Member
235 posts
Helper bee
  • Wedding: December 1969

The former Miss Flip-Flop had a post on her blog talking about this yesterday, which is an interesting take on why going into debt for your wedding isn’t so bad.

I think a lot more people go into debt for their weddings than we know of, but a lot of them do it with credit cards.  I think depending on the terms of the loan versus the terms on your credit cards, it is better to take out a loan than put everything on credit cards.  Plus, taking out a loan will force you to stick to that amount, instead of simply letting the costs pile up.  

 

Post # 11
Member
1061 posts
Bumble bee
  • Wedding: September 2008

No, we didn’t take out a loan. I did want to tell you to *please* not spend money thinking that you’ll get it all back in gifts (like ju referred to above). We received $4000 (just 10% of our wedding) last month — all of the other gifts were from our registry and a substantial number of people (~30) didn’t give anything. You could risk not registering anywhere, but some people just won’t give cash and you’ll end up with crap. With the economy the way it is, I just don’t think people can afford to be as generous now.

Post # 13
Member
443 posts
Helper bee
  • Wedding: August 2009

We’re not taking out a loan to pay for our wedding either. Even before we were engaged I knew I wanted an intimate no frills wedding, so that just makes planning this shindig a lot easier. We have our own money saved, my parents simply dont have any extra money to give, and his parents have said they can help towards the wedding, or give us a gift that we can put towards a future downpayment on a house. We chose the house. We’re planning on having a small outdoor wedding of 60 people, on my Aunt’s property right on the river, and we’ll wait to take our honeymoon on our 1 year anniversary.

 Always try to do what’s best for you, and your current situation. You never know what may happen down the road. Weddings aren’t about keeping up with the Jones’, its about declaring your love and devotion to each other in front of the people that mean the most to you. When you have that, your wedding will be beautiful no matter what.

Post # 14
Member
350 posts
Helper bee
  • Wedding: July 2009

I have to be honest: hearing about "wedding loans" or people putting weddings on their credit cards makes me cringe.  I’ve known couples who put a smallish chunk of their budget on a new no-interest card in order to pay it off more slowly, which I think is reasonable, but why on earth would anyone want to start a marriage with $20,000 in credit card debt and no chance of qualifying for a decent mortgage?  With the looming credit crunch, I really think it pays to be conservative about how much debt you carry.

I think people often feel a lot of pressure to "go big" with a wedding, even if they can’t afford it, because more and more their guests will have to lay down cash for airfare and hotels to get to the event.  This is something my Fiance and I have argued a bit over.  I suggested a Sunday brunch wedding in order to scale our costs down, but my Fiance was almost in tears as he insisted that we couldn’t possibly ask our nearest and dearest to come all that way "just for brunch." 

I eventually agreed to the Saturday night wedding he really wanted, but I really believe the people you love will come if they can, even if it is "just brunch" or "just lunch" or "just a buffet." They will want to share that special moment with you even if you can’t afford to go all out on the party. MissCamera said it best:"Weddings aren’t about keeping up with the Jones’, its about declaring your love and devotion to each other in front of the people that mean the most to you. When you have that, your wedding will be beautiful no matter what."

Post # 15
Member
275 posts
Helper bee
  • Wedding: May 2009

I think it is all dependent on your situation.  We are putting most of what we need to pay for now on a credit card.  People can think that’s a bad idea or whatever, but that’s what we’re doing.  I don’t think it’s that great of idea either, but I’m working with what I have.  My parents are contributing and my Fiance still needs to figure out what his parents are willing to contribute. 

I don’t think it’s fair to the originial poster to judge.  I agree with ju1244 said – I don’t know anyone who has paid for a car or house completely with cash.  Why is it bad to finance your wedding when we finance almost everything else?

It’s not a question I can answer!  

Post # 16
Member
508 posts
Busy bee
  • Wedding: December 1969

it is a highly personal decision with tons of ramifications.  i’ve got old credit card debt i’m still climbing out of along with school loan debt.  thankfully, we were both clear at the outset that we wanted a very small wedding, but were still surprised at how much that can cost in our area (San Francisco).  we looked at budgets, looked at our finances and then adjusted and tweaked to get something we could afford.  we were very, very lucky in that his parents and mine stepped in and paid for some things, which allowed us to splurge on food a bit (one of our high priority items).  even so, we did a lot of the work ourselves and many of our friends donated their time and talents as friendors.  not only did it make sense on our budget, but it made the entire experience more meaningful for us and for the people who participated (or at least that is what they’ve said).

the idea of a loan doesn’t sound like a great idea to me, but it depends on a lot of things including the size of the loan, the intent behind it and the circumstances.  for example, a small loan to cover deposit payments in advance of a tax refund or bonus would be one thing.  taking out a huge loan to throw a super fancy party you couldn’t otherwise afford is perhaps a tad less responsible.  on the other hand, at least you’d be contributing to the economy!  all joking aside, i’m sure most situations are somewhere in between and in the end, you need to do what you and your Fiance are comfortable with.  Come up with a plan and make sure it’s what you want and it makes sense.  If not, revise.

The topic ‘Taking out a wedding loan?’ is closed to new replies.

Find Amazing Vendors