Let’s be real, weddings are expensive. Between the venue, entertainment, outfits and rings, the average Australian wedding costs around $36,000, which is exactly why wedding loans have become increasingly common. According to MoneySmart, more than 82 per cent of couples dip into their savings to pay for the big day.
Say ‘I Do’ To A Perfect Eco-Wedding And beyond the financial pressure, traditional weddings can generate a surprising amount of waste, from single-use décor to fast-fashion outfits often worn once. When you want everything to be more than perfect, expenses (and impact) quickly add up.
Borrowing money can seem like the only option, but is it a good idea? And what are the downsides? Here’s a closer look at the pros and cons of taking out a wedding loan so you can make an informed, and mindful, decision:
Pros of Wedding Loans
Wedding loans are a type of personal loan designed to cover wedding expenses. One major benefit is enhanced financial flexibility. If the day you’re dreaming of isn’t possible with your current savings, a wedding loan can offer some stability. You receive upfront funds that can be used wherever needed, from your venue to your honeymoon, allowing you to choose suppliers, experiences, and even décor that align with your values. The process is straightforward, and some lenders release funds within 24 hours.
Another advantage is protecting your savings. Many couples drain their savings accounts to fund their celebration, but financial experts suggest keeping savings intact for emergencies and longer-term goals. A loan allows you to plan your wedding, sustainably or otherwise, without wiping out your safety net.
Wedding loans also tend to come with lower interest rates than credit cards, making them a more manageable option. If you make repayments on time, a wedding loan can even help improve your credit score, which may be useful for future plans like buying a home or making eco-friendly upgrades.
Cons of Wedding Loans
However, there are drawbacks. Taking out a wedding loan still means taking on debt, so consider your future financial goals before signing anything. Loans can also make overspending easier, and weddings already come with enough societal pressure to go big.
If you’re trying to plan a more conscious celebration, a large lump sum may tempt you into unnecessary extras. And starting married life with repayments can create strain, especially if expectations or budgets aren’t aligned.
Ultimately, taking out a wedding loan isn’t inherently wrong. It simply requires responsible planning. Borrow only what you can comfortably repay, talk openly with your partner, and consider where your budget can be used meaningfully, whether that’s choosing local suppliers, skipping wasteful gimmicks, or investing in elements you’ll remember long after the day is over.
A thoughtful approach can make your celebration feel special, personal, and kinder to your financial future.
