Watch out for wedding loans

Watch out for wedding loans

(WWBT/WXIX) - The average wedding in America now costs more than $35,000, and that doesn’t include the honeymoon.

A lot of couples are now turning to personal loans to cover that.

Data shows the bride’s parents still cover a big chunk of most weddings, contributing about 44% of the budget on average. But couples now pay more than 40% of the wedding bills, too, Which is why wedding loans are booming.

But let’s work through the math: Let’s say you want to borrow $20,000 for your wedding. you and your fiancé both have student loans, and you’re saving for a house.

So you choose to pay that $20,000 back over 10 years, and get a wedding loan at 10% interest. That means locking yourself into a $264 monthly payment for 10 years, and you’ll pay $11,000 in interest charges.

That’s a decade of loan payments, and a fortune in interest, all for a four-hour event.

Instead of committing to years of debt, think about extending your engagement so you can save the money you’ll need. Scaling back the arrangements and doing a lot of the work yourself will help, too.

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