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The Real Cost Of A Wedding Loan

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There is no denying that most weddings are expensive and the average cost is now looking near the region of $30,000, which is a huge amount of money.

With that more and more couples are looking to take out a loan to cover their expenses and for some couples it can work really well. However, there is a huge cost involved in paying back a wedding loan and if you are thinking of doing this I just wanted to show you what the real costs could be.

Most wedding loans are taken out as personal loans which normally means that they are not secured on your property. Great news! Until you realize that means your interest rate is quite likey to be fairly high.

Having had a good look around I have found interest rates on $10,000 vary from 5.5% to 21% the last one is crazy!! (however this is the kind of rate you are paying on your credit card)

  • If you borrowed the $10,000 at 21% and were able to pay it back over 3 years at over $300 a month you would eventually pay back $13,235 - the cost is over $3,000 to you.
  • That same 21% loan taking 10 years to pay back will mean you will end up paying back over $12,500 at a rate of just under $200 a month.

It sounds more affordable but do you really still want to be paying for your wedding on your 10th wedding anniversary?

The lower the rate of interest the less cost to you, so if you are thinking of taking out a loan please make sure you shop around.

Don't take out a wedding loan

Of course you don't have to take out a loan.

There are a ton of ideas on this site and round the web where you can swap expensive wedding items for those that will cost a lot less. 

Make your wedding unique to you without any expensive price tags and you will have a much happier start to married life.

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