The Truth About Funding Your Wedding
If you’ve ever thought about your future and getting married, you’ve probably thought about having the perfect wedding. Everyone wants all their loved ones in attendance, an open bar, delicious food, and beautiful decorations. However, there is a high price that comes with all of those things — literally. Studies show that millennials spend more on weddings than any other generation, so it’s no secret that it can be incredibly difficult to fund your special day.
Having the perfect wedding often costs thousands of dollars, and if you’re one of the lucky ones, a portion will be paid for by family members. For most, however, the special day isn’t funded by family. Many millennials will take out loans just to fund either a portion or their entire wedding day, as they can’t upfront the money immediately. Going into debt for your wedding isn’t ideal, but many will sacrifice that to have a memorable day.
People who take out a loan to fund their wedding end up paying more than they would have up front, as it is with pretty much any loan. This is due to interest. But just how much interest would you pay if you fund your wedding? The Black Tux recently created a study of how much it costs to take out a loan to fund a wedding in each state, and the result of some states is truly shocking.
By taking the average cost of a wedding in each state and applying a personal loan, The Black Tux was able to calculate the amount of interest paid to fund 100% of a wedding by paying the loan back in a 3-year period. The most expensive state to fund a wedding in Hawaii, where the total interest paid is over $9,000 — and this is in addition to the actual cost of the wedding as well. If you plan on getting married in Hawaii and it’s just you funding the wedding, maybe try to think about getting married somewhere else. Many states in the Northeast also have extremely high payments of interest.
When taking out a loan, you aren’t expected to pay everything back right away. That’s the point of a loan. That’s why The Black Tux also included the monthly payments for each rate in a table below the graphics. The monthly payment to fund 100% of a wedding over a three year period in Hawaii is an insane $1,345.10 a MONTH. If that doesn’t scare you away from funding a wedding in Hawaii, I’m not sure what would. Essentially, for the average millennial it’s as if you’d be paying two rents each month
If you feel like you may struggle with finding a way to fund your wedding, consider using this information as a guide. Remember, having an extravagant wedding may not be worth the burden of taking out a loan. Having a low-key wedding could make the event more intimate between you and your spouse, and no matter the price, it’s a day that you, your friends, your family, and your loved one will always hold dear.