The Cost of Not saying ‘I do’ – $3.7 billion owed by couples

A couple’s wedding day can be the most special and memorable day in any relationship. It is unforgettable not only for the couple themselves but for friends and family as well. Some weddings involve months and even years of planning. Couples spend all this time getting everything ready for the big day. They work out the budget carefully to the last cent and boutonnière. Some of them even opt for financing their perfect day with loans for weddings.

However, no amount of wedding planning could have prepared for the impact of a global pandemic this year, which put most of the United States into lockdown. And is still having a serious impact on the health and livelihoods of people all around the country (and the world).

The Cost of Not Saying ‘I do’


$3.7 billion owed by couples for weddings that haven’t happened

We wanted to find out how the pandemic has impacted the wedding industry in the United States. And more specifically how it has impacted people who had taken out a loan to help cover the cost of their big day.

The Cost of Loans for Weddings – Research Results

When the number of canceled weddings this year was correlated with the average number of weddings paid for with loans, it was discovered that 11% of people due to get married this year (225,000 couples) are paying back loans for weddings that haven’t yet happened.

This was calculated by correlating key facts about the wedding industry in the United States of America:

  • Each year, over two million weddings* take place in the United States, with 81% occurring between March and October**
  • The Knot Worldwide discovered that an estimated 93% of weddings planned during this period have been rescheduled for a later date***
  • There were 20 million personal loan debts in the US last year and 1.5% of all personal loans are taken out to help finance weddings****
  • The average wedding costs over $30,000, despite the average budget of $23,000**
  • Our internal data shows that couples take out an average of $16,500 to pay for a wedding
A shocked bride

When these figures were combined, we discovered that 11% of weddings due to take place in 2020 have been postponed or canceled and were funded by the couple taking out a loan. The average wedding is $16,500. So the total amount of debt for weddings that haven’t yet happened is estimated at $3.7 billion!

Tips for Saving on Your Wedding

If you are in the process of planning your wedding and looking to cut costs then head over to our page for Everything You Need to Know to Save Money on your Wedding or take a look at our handy infographic below.

Wedding Savings Loanry

If you still are considering taking out a loan to finance your wedding then we recommend you head to our page on Wedding Loans for more information about the different types of loans available and whether any of them would be right for you.


Ethan Taub, founder of Loanry.com, said,

“You should take financing a wedding using a loan very seriously and we don’t recommend it. In fact, finding ways to cut costs on your wedding expenses is a far more effective alternative. In this way, you can avoid unnecessary debt yet still enjoy your big day.

“This last year will have been devastating for many couples. Especially for the percentage paying off loans for weddings that haven’t happened. However, we can take a positive from this situation. It may have highlighted that an exuberant wedding isn’t always the best option. The occasion will be memorable no matter how much you spend on it.”

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7 Money Mistakes to Avoid When Planning your Wedding Day

Financing a wedding is not really plain sailing. The average American wedding costs about $39,000. This has seen a good number of wedding couples borrowing $11,000 on average to finance the perfect day. Unlike in the past, weddings today can cost an arm and a leg. Although modern life brings with it great financial demands, many people still dream of having the perfect wedding. One that will remain the memories of their guests. As such, people are increasingly turning to lenders to find the money they need to make their big day a success.

Just like with any other type of loan, borrowers must have the right information in order to make conscious and informed decisions. While getting a loan for a wedding is not a problem in itself, taking out the loan without taking important factors into account can get you into financial trouble. Whether you plan to pay for the wedding from your pocket or take out a loan, here are a few things to know about financing a wedding.

1. Not Having a Budget

Just like with planning any other event, it is critical that you have a budget that will help you in knowing how much is required and how it will be spent. However, a good number of couples go through the process without coming up with a budget. Failure to create a budget may see you spending too much in one area and skimping through important things that you care about. You may also end up spending much more than you can afford, a factor that could get you into debt. Creating a budget will help to ensure that you are happy on your wedding day and the period afterward.

2. Underestimating the Cost of an Outdoor Venue

A good number of people choose to have an outdoor wedding since they consider this to be the less-expensive option. However, this is not necessarily true. It is important to factor in all the costs that you are likely to have if you settle on this option. These will include paying to use the property, renting chairs, bathrooms, tents, lights and maybe heaters or fans. The most critical thing is to ensure that any additional items that you will need are accounted for. This will help to minimize the chances of your budget being caught off-guard.

3. Waiting Too Long to Have the Money Talk 

Proper financial planning for a wedding requires the input of both parties. This means that the couple should strive to ensure constant and effective communication, especially when it comes to money matters. Waiting too long before having the money talk may result in a wastage of money or spending in non-priority areas. In the end, a couple may end up looking for money to ensure that everything is paid for. This is one of the reasons why couples that had not intended to take out a wedding loan end up in debt after the wedding.

4. Spending Too Much Money on the Dress

This is a common issue when it comes to brides. Part of financing a wedding successfully involves balancing expenditure to ensure that all areas are allocated enough resources. This means that while the bride may want to look their best on their special day, they have to be realistic when it comes to the dress they want to buy. Besides the cost of purchasing the dress, couples should factor in the extra costs that come with it.

Wedding Budget

5. Inviting Too Many Guests 

Weddings are meant to be happy and festive events, making it understandable when couples want to share their happiness with a large number of people. While there is no problem in inviting loved ones to come and celebrate with you, you should always have your budget in mind. The larger the number of guests, the more you will have to spend to keep them happy and entertained.

6. Trying to Go it Alone

Today, weddings have become expensive affairs, with couples requiring a substantial amount of money to organize the perfect event. One of the mistakes that people make is trying to go it alone, without help from family and friends. Instead of spending so much only to end up in debt or financial struggles after the wedding, it would be wise to accept any help that your loved ones offer.

7. Forgetting to Focus on What Is Important

While this may not have an impact immediately, it is a mistake that could seriously affect relationships for years to come. People who are looking to get married should remember that beyond the wedding, they will be starting a life together. There is no doubt that the sticky topics that weddings stir up are bound to create tension between different parties. However, rather than focusing too much on money issues, it is important to be nice to each other to ensure the health of the marriage.

While you may have the money to finance a wedding, the importance of working with a financial advisor cannot be denied. It is important for couples to remember that there is life after a wedding and honeymoon. This means that there is always a need for long-term financial planning to ensure that the union does not suffer under the weight of a loan for marriage

What Is a Wedding Loan?

Figuring out how to finance a wedding is one of the most stressful parts of planning the event. The good news is that starting early can help to reduce the frustration associated with the process. While taking out a loan for a wedding will ensure a successful day and let you repay the money over time, it is important to understand what these loans are.

A wedding loan is simply a personal installment loan that is used to pay for wedding expenses. As a personal loan, it has a specific term and is designed to be paid back in equal monthly installments. The interest rates on these loans can either be fixed or variable, depending on the terms of the loan.

In case you have already budgeted for various wedding expenses but do not have the cash to make immediate deposits or bills upfront, a loan can help you in financing a wedding. Today, consumers have numerous options to choose from when it comes to wedding loans. However, this also requires that one takes their time before taking on the related financial responsibility. This is particularly important for people with bad credit looking for wedding loans for bad credit since some lenders have predatory practices.

Conclusion

Weddings are happy occasions and everyone dreams of a perfect wedding. While there are many different options for consumers looking for loans for a wedding, starting early will see you coming up with more creative ways of financing a wedding. However, if you find yourself in a situation where getting a loan for a wedding is inevitable, you choose the one that works best for you. We make it easy for consumers to find lenders easily and quickly when they need a loan. If you are looking for a wedding loan, kindly consider working with us for a hassle-free borrowing experience

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