Do most people get loans to pay for the wedding?

Do most people get loans to pay for the wedding?

Posted 6 March 2020. Categories: Personal Finance.

Weddings are notoriously expensive, but as a day celebrating the love of your life, they're widely considered to be worth it. 

But when you see the numbers thrown around for your big day, it can be alarming. Just how do people afford it? The answer is, there are many ways to get the money you need, including taking out a wedding loan

Do most Australians get wedding loans?

Although it's not something that most people talk about, research shows that more than half of Australian couples get a wedding loan to help create their dream day. 

According to government research, 60% of couples take out a personal loan to pay for their wedding. 

Other forms of funding include taking out savings, getting help from parents and using credit cards. 

Why get a wedding loan?

It's no secret that weddings are expensive, but not many people realise quite how much they cost until they start planning their own. 

When you add together all the ingredients of your special day, research shows that the average wedding in Australia costs $36,200. Since most people don't have that level of savings to hand, it's no wonder that wedding loans are so common. 

Another benefit is that you can take your time paying off a loan. Most wedding loans have three or five year terms, so rather than having to find the money to pay for all your wedding bills in a short space of time, you can give yourself a bit of breathing space. 

Other options, such as using a credit card, can get expensive if you don’t pay down the amount owing quickly. Although you may get an initial interest-free period, once this is up, your debt may switch to a high interest rate. 

Credit card debts are one of the leading causes of money problems in Australia, although getting a personal loan to pay off credit card debt is one way to help with that. 

How to save money on your wedding day

A big factor in the huge costs of a wedding is that many couples don't budget properly. They either don't have a budget (18%) or, if they do, they don’t stick to it (35%). One of the best ways to restrict spending is to make a plan – and stick to it. 

The most expensive parts of a wedding tend to be the venue, the food/drink and the clothes (for the bride, groom and wedding party). Some of the more surprisingly expensive items are photography, food and flowers.

Often, the word 'wedding' adds on a special tax to prices – a wedding venue is more than a standard venue, a wedding band costs more than a covers band, and wedding photography is more expensive than other forms of photography. 

If you can avoid telling people what you want something for (that might be hard for a photographer or a celebrant, but easier for flowers or decorations), you could save yourself a bit of cash.

Also, don't accept the first quote you get. For almost all aspects of the wedding, you'll find a wide range of prices available. Shop around to get the best deal you can. 

Calling in help from friends – asking them to provide a service as a gift – is a good way to save cash too.

There are also two slightly more drastic options to cut costs. One is to slash the guest list – the fewer people you have to feed, the cheaper your bill. Alternatively, you can push back the wedding date to give yourself more time to save up.  

Getting the financial help you need with your wedding [definitely needs rewording - we dont offer financial advice]

If you don't want to cut corners or the size of the guest list, the best way to fund your wedding may well be with a wedding loan. Find out how Harmoney can help you get the money you need – up to ⚠, depending on your credit history – at an affordable rate.

The best part? Almost all Harmoney customers get their funds within 24 hours of accepting their loan terms. You'll be able to start putting down deposits and securing the best parts of your wedding for a truly memorable day.