From eco friendly decor to cupcake tiers, there’s always a new wedding trend on the rise. But according to recent research by peer-to-peer lender (P2P), RateSetter, low rate personal loans are also becoming many couples’ wedding essential.
A big reason loved up couples are opting for personal loans to help pay for their big day is to minimise credit card debt - 40% of RateSetter customers admitted to have taken out a personal loan to avoid using their plastic.
“For Aussie couples planning their wedding, the last thing they want to be worrying about is their finances, but with many Aussies underestimating the costs involved, they risk making hasty financial decisions and falling into debt,” said RateSetter CEO, Daniel Foggo.
Contrary to the popular belief that men are not as involved in wedding planning, the data revealed that men were 66% more likely to take out a personal loan, compared to women (34%).
Wedding loans issued by the P2P lender were almost three times as likely to be put towards food, beverages and catering, rather than rings or attire.
But although personal loans may be the more financially savvy decision for many Aussie couples, it seems they don’t have a handle on their wedding budget as they initially thought, with 45% of RateSetter customers underestimating the cost of their wedding.
Wedding loans were also recorded as a last minute decision with a further 43% admitting to have taken out a loan less than six months before their big day, which according to Foggo, is only set to increase.
“Demand for personal loans for wedding expenses is growing as Aussies become more savvy with how to finance their big day. By offering a better, smarter choice for navigating personal finance through a low-rate personal loan, we want to help couples avoid high-interest debt,” he said.
And with the average RateSetter wedding loan amount hitting $15,190, we thought it might be worth jotting down a few tips and tricks on how you can make every dollar count on your big day.
- Go digital - It’s no secret that wedding invitations can cost a bundle, so why not save some cash (and paper) by sending out evites instead!
- Think preloved - Even if you've been dreaming of your wedding dress for years, the reality is wedding gowns can set you back thousands of dollars. Since you’ll only be planning to wear it for one day anyway, a preloved wedding dress can help you save big in the long run.
- Ditch the cake - Ironically, while the wedding cake is one of the more symbolic parts of the day, it usually gets forgotten about once everyone hits the dancefloor. So if you aren’t too bent on following tradition, having a cupcake tower instead might be just the ticket.
Ready to find the perfect personal loan for you? Well just like finding a partner, you’re going to have to do some shopping around. So make your next stop our personal loan comparison tool.