Taking out a Loan for a Wedding: Diamonds to Debt

While weddings can be done at reasonable costs, many are extremely expensive. Since the day of marriage is one of the – if not THE – biggest days of your life, it’s no wonder that you want it to have all of the trappings. A great dress or suit, the perfect venue, top-tier decorations and catering…it all adds up to a significant sum. If long-distance travel is involved, costs go even higher. Because of this, it’s no wonder if you’ve considered taking out a loan for a wedding or for travel finance.

Before taking out any loan, you should always consider whether it’s a good idea in the long term. Many say that you actually should not get loans for wedding expenses. The Balance explains that the biggest issue of contention in a relationship is money, and that starting out your new life with a pile of debt can bring unnecessary friction. They suggest having a smaller wedding celebration and using the money that would have gone to loan payments for other options. The loan payment money could go to things like saving up for your first house, retirement, or investments.

What is a Wedding Loan?

In almost all cases, a wedding loan is just a personal loan that you’ve decided to use to pay for wedding expenses. It is unsecured, so you can’t lose your house if you don’t pay it back. Legally speaking, the term “wedding loan” is just a colloquialism.

As with other personal loans, your credit score is the main determining factor for approval. Your employment history will typically factor in, as well. If you’re unemployed, lenders are unlikely to be interested in financing your plans.

Should You Take Out a Personal Loan for Your Wedding?

Though some advisers are against the idea, others say that there are pros and cons to the idea of wedding finance. The goal is always to find ways to save money on your wedding rather then borrow it for the big day. Pros of taking out a loan for a wedding include:

  • It’s easy to get a loan if you have a good credit score and stable income
  • Interest rates are typically lower than that of credit cards
  • It usually just takes a bit of paperwork to get the loan
  • You’ll be able to pay for a bigger or more extravagant wedding

There are, however, some cons to keep in mind:

  • It can be hard to start a marriage with more debt
  • If you already have a lot of debt, the new payments can seriously pinch your finances
  • Interest makes it so you have to pay back much more than you borrowed
  • Those with bad credit will have to pay much more interest

Other Options to Consider

Farm Bureau Financial Services says that there are several other options to consider. These include saving up over a longer engagement, creating a wedding budget to stop feature creep, downsizing your guest list, and shopping around. It's always a good idea to shop around anyway, but if you're trying to avoid taking out a loan for a wedding, you may need to do more of it.

Are Wedding Loans Worth It?

Only you know if taking out a loan for a wedding will be worth it. That’s because you know your finances, employment status, and your own tolerance to debt. For a wedding, be sure to talk to your partner as well. Even if you’re fine with the debt, there’ll be problems if he or she is against it.

With that in mind, the answer is, as they say, a definite maybe. If you’ve spent your life dreaming of a big, flashy wedding, you’ll be disappointed with a small one. You surely intend on your wedding to be a one-time event, so it can be worth it to make it extravagant.

On the other hand, if you loathe having to pay bills, it makes sense to avoid adding one to the pile. The same is true if you know that you’re likely to have periods of unemployment or underemployment. Then, it’ll be worth it to save up so you can avoid the stress.

Wedding decoration

Can You get a Personal Loan for an Engagement Ring?

Engagement rings are typically more affordable than wedding rings, but they can still be expensive. Because of this, the idea of taking out a loan for one may come to mind.

The short answer to this is “yes.” You can take out a personal loan for pretty much any legal purchase. As with a wedding loan, the approval will depend on your credit history and employment status.

In 2021, the average cost of an engagement ring was between $4,700 – $5,600

Whether you should borrow money for an engagement ring depends on the same factors as taking out a loan for a wedding. It’s always a good idea to consider alternatives to loans. Note that you should also look for ways to keep the cost of your engagement ring down, such as shopping online.

Most popular diamond shapes

Banks that Offer Wedding Loans

Since a wedding loan is a personal loan, you can get one at almost any full-service bank. Banks often do not advertise them as “wedding loans,” but if their underlying product is a personal loan with no real limitation on use, you can get one for your wedding.

According to Student Loan Hero, there are several online banks that can provide the needed funding. These include Prosper, Earnest, and LightStream. Loanry is another excellent source for all types of funding needs that include helping you find a lender.


Taking out a loan for a wedding is quite common, to the point that some financial institutions specifically list this purpose in their “reason for loan” drop-downs. As we have discussed, there are benefits and drawbacks to this solution. They can allow you to have a bigger or more extravagant wedding without the need to save up. On the other hand, they are debt, and debt of any sort involves interest and repayment.

Whether taking out a loan for a wedding is right for you depends on whether you are more attracted to the idea of the fancy wedding or to being debt-free. Think wisely before making your choice, and you should be satisfied with the results either way.


Everything You Need to Know to Save Money on Your Wedding

You can have the wedding of your dreams without breaking the budget. But you’re going to have to plan ahead to do so. The strategies below can help you save money on your wedding without sacrificing everything you’ve dreamed of. You can shop around, compare costs, and downsize these things to stretch your budget further, though.

How Much Money Do You Need to Save for a Wedding?

The Knot Real Wedding Study for 2021 revealed telling information about the costs of weddings with the average wedding ringing in at nearly $22,500 (without the honeymoon) and the average “per guest” spend coming in at $307. The good news is that your wedding doesn’t need to be nearly as extravagant as these weddings for you to have an amazing experience your friends and family (not to mention the two of you) will cherish for many years to come.

The key is to decide on a budget and create the best possible wedding within those budgetary constraints. The last thing you want to do is create the wedding of your dreams that becomes a financial albatross as you are beginning your new lives as husband and wife.

How to Save for a Wedding in a Year?

It’s quite possible to save for a wedding in one year’s time – as long as you’ve created a budget that works with your goals and expectations. Obviously, if your dream wedding costs more than your annual income, you’re going to have to make some adjustments.

The Knot recommends using simple math to plan your wedding budget. If your goal is to spend $20,000 for your wedding and you plan to get married in one year, then you need to save $1,700 per month to make it work.

If you can’t manage to save that much, look for big ticket items you can eliminate from the budget or extend the amount of time you plan to save for your wedding.

What kinds of things can you eliminate from your budget? Consider the following:

  • Switch wedding venues
  • Create a smaller guest list
  • Reduce the size of your bridal party
  • Slim down the menu

Any of these things can help you save more effectively for your wedding by reducing the overall costs of it.

Wedding Budget

How do I Save Money on My Wedding Cake?

While you are working out ways to cut costs on your wedding, the last thing you want to do is go broke on your wedding cake. Consider these recommendations from Wedding Wire to keep the costs of your wedding cake under control:

  • Ditch elaborate cake designs. The bride should be the prettiest thing in the building after all. Plus, something simple is sometimes supremely elegant
  • Go with slimmer slices. This helps stretch your cake and your budget further without stretching as many waistlines in the process
  • Choose a small, tiered display cake and a larger sheet cake to serve your guests. The best part is they’ll never know the difference

Little tricks like these can help you save big on your big day. This will either leave more money in your budget for a honeymoon or help you develop life-long habits for saving money and stretching dollars.


is the average honeymoon costs.

How do I Save Money on My Wedding Dress?

There are plenty of things you can do to save huge amounts of money when buying a wedding dress. These are just a few options available to you from low costs (as low as the costs of slight alterations) to moderate costs:

  • Borrow from a family member of similar size. It might not be your first choice, though in some families it’s a tradition. With the average costs of a wedding dress above the $1,500 mark, it’s a good tradition to start
  • Shop vintage and second hand. There are some wedding shops that specialize in second-hand wedding gowns. Not only is it budget-friendly, it is also planet-friendly
  • Buy last year’s designs. This is one of the more expensive options for cutting costs, but it is highly effective and can save you hundreds of dollars, if not more

There is always the option of borrowing money for your dress or asking for your mother to help pay for it as a wedding gift to you since wedding finance is no laughing matter.

Wedding setup.

How Can I Save Money on My Wedding Venue?

There are many ways you can save on your wedding venue. One thing to consider is whether you need a specific venue hot spot or if you have a friend or relative that will allow you to celebrate your big day on their property. This eliminates the venue fees freeing up precious funds for other things.

However, you can save big on your venue by thinking outside the box. For instance, The Knot Real Wedding Study reports that fall and summer are the most common times of year for weddings, accounting for 37 percent each, of all weddings Saturday is the most popular day of the week for weddings. This means you can save money on your favorite venues by getting married in winter or spring and planning your wedding for a day other than Saturday.

Wedding Photographer Cost

An average wedding photography prices vary from $2,500 to $5,000.

How to Pay for a Wedding with No Money?

For starters, keep your wedding small. It’s hard to plan a big event when you have little to no extra money in the budget. This might be a case where you opt for a small civil or religious ceremony, and then consider a less formal party or event to celebrate with your friends and family. Offbeat Bride suggests you can have a low budget wedding with as little as $100. It might not be the day of your dream, but the important thing is that you’re marrying the spouse of your dreams.

Another thing you can do to is to ask for help. Explain to friends and family members that you’re trying to save for your wedding. Ask that they consider donating to your wedding fund in lieu of Christmas, birthday, and other annual gifts.

Thinking about taking out a loan for a wedding? You’re not alone. Many couples consider getting wedding finance help in the form of personal loans and other finance options. Some opt to pay for weddings out of pocket and seek travel finance help to fund dream honeymoons once the main event is over.


Financing a wedding is hard work. Our goal is to help you understand your loan options ahead of your big day. Contact us to learn more about the services we provide and the many ways we can help you manage credit, taxes, and more to get your financial affairs in order as you begin your new lives together.