On The Street today:
Taking out a wedding loan is one of the biggest financial mistakes a couple can make.
With the wedding season upon us, brides and grooms are going to be shelling out big money to get married. U.S. couples spend on average more than $28,000 for a wedding, with the average wedding in bigger cities costing as much as $50,000.
These numbers don't even include the honeymoon, engagement ring, bridal consultant or wedding planner, all of which can add tens of thousands more to the cost of a wedding.
In the past, families of the bride and groom typically helped out with wedding expenses, but with the prices of weddings so high and people waiting until later in life to get married, it's becoming more common for the bride and groom to pay for part or all of these expenses.
This is fueling the growing trend of couples getting wedding loans.
Both secured and unsecured wedding loans are available, and loan amounts can vary greatly, from as little as $1,000 all the way to the high five-figures.
The interest rates you qualify for will depend greatly on your credit rating and whether you choose a secured or unsecured loan.
In most cases, even couples with good credit will need to pay double-digit interest rates for a wedding loan, and many will carry interest comparable to what a couple would qualify for with a credit card.
While getting a wedding loan may seem like a good way to bridge any shortfall a couple has, it's one of the biggest financial mistakes they can make. There is nothing worse than starting off married life tens of thousands of dollars in debt, especially if student loans and other debt is also being brought into the marriage.
The entire amount paid for the wedding will disappear in a day, and if the wedding is paid for with a loan, the couple could be paying for that day years down the road.
Any couple that has to get a loan to pay for a wedding is setting itself up for money troubles in the future. Avoiding the wedding loan will force a couple to deal with financial issues before marriage, which can go a long way to eliminating money as a major marital problem.