Getting married in 2021: what are my options to fund a wedding?

By Polly Fleeting · · 3 min read
Fact Checked
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happy couple dancing at their wedding

Spring wedding season is around the corner, and despite tying the knot in 2021 may look a little different than before.  

Many Aussies have been forced to change their wedding plans throughout 2020 and this year, with multiple lockdowns and different levels of restrictions.

However, for many couples the expense of a wedding was and is still a tricky cost to cover. Whether mum and dad are pitching in, you take out a personal loan or reach into your wallet for your credit card, the truth is that your savings may not be enough.  

In fact, according to moneysmart the average cost of a wedding in Australia currently sits at $36,000. Their stats found that while 82% of couples relied on their savings to cover wedding costs, another 60% took out a loan and 18% used their plastic. 

So, should I take out a wedding loan or use my credit card?

The choice of taking out a wedding loan or using a credit card to fund your big day all comes down to how much you need to borrow and how you’ll pay it back.

If you have a big expense to pay, like the venue, a personal loan may be a more worthwhile option … and here’s why: 

Currently on the Mozo database the average unsecured personal loan rate sits at 9.72%. That’s compared to the average credit card rate of 16.93%. 

Take this scenario for example. 

Let’s say you needed to borrow $10,000 to put towards your dream wedding. 

You opt for a three-year personal loan at the average rate of 9.72% p.a. By making only your required repayments of $321 per month, you’d end up paying $1,569 in interest over the life of the loan. 

On the other hand, if you chose to use a credit card with a rate of 16.93% p.a. with no annual fee and kept the same monthly repayment of $321, it would take three and a half years to pay off your debt. Plus, you’d end up forking out $3,266 in interest that’s $1,697 more than the personal loan option.  

What about for small costs? 

If you only need to cover smaller costs, say something that is under $2,000, a credit card may be a better option. In the case that you need to pay off your debt over a period of time, and can’t pay the balance in full before the month is up, you may want to consider a low rate credit card. 

It’s important to remember that you do need to apply for both a personal loan or credit card. Providers will require you to include information about your earnings, savings, credit health and more. So make sure you give yourself time to be approved as well as know how your credit rating is looking - it may influence the rate you are offered or your ability to take out a loan or credit card at all. 

Also, avoid payday or instant personal loans. These loans might seem attractive with their fast approval times and lower borrowing amounts, but they can come with extremely high interest rates or require you to make balloon repayments once the loan term is up. 

Thinking of a personal loan to fund your wedding? Check out these top options below!

Compare personal loans - last updated 28 November 2023

Search promoted personal loans below or do a full Mozo database search . Advertiser disclosure
  • Featured Product
    Low Rate Personal Loan

    Excellent Credit

    interest rate
    comparison rate
    Monthly repayment
    6.57% p.a.to 8.48% p.a.
    7.19% p.a.to 8.84% p.a.based on $30,000
    over 5 years

    OurMoneyMarket offer competitive low rates for borrowers with excellent credit on loans up to $75,000, plus free extra repayments and fee-free redraw facility. Winner of Mozo's Experts Choice Unsecured Personal Loan 2021 award^.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 6.57% would cost $35,528.12 including fees.

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  • Unsecured Personal Loan

    Fixed

    interest rate
    comparison rate
    Monthly repayment
    6.75% p.a.to 26.95% p.a.
    6.75% p.a.to 26.95% p.a.based on $30,000
    over 5 years

    Borrow up to $50,000 unsecured. Perfect if you earn more than $22,100 p.a. and have good to excellent credit. Multi-year winner of Mozo’s Experts Choice Unsecured Personal Loan Award, 2021, 2022 & 2023^'

    Repayment terms from 2 years to 7 years. Representative example: a 5 year $30,000 loan at 6.75% would cost $35,430.23 including fees.

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  • Unsecured Personal Loan

    Fixed

    interest rate
    comparison rate
    Monthly repayment
    5.76% p.a.to 24.03% p.a.
    6.55% p.a.to 24.98% p.a.based on $30,000
    over 5 years

    Fast, easy and 100% online, this is a low cost loan with no ongoing fees or extra repayment penalties. It's perfect for savvy borrowers with great credit. If you’re over 18 and earn above $30,000, you could qualify (other eligibility criteria may apply).

    Repayment terms from 3 years to 7 years. Representative example: a 5 year $30,000 loan at 5.76% would cost $35,173.52 including fees.

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    Details
  • Standard Personal Loan

    Fixed, Unsecured

    interest rate
    comparison rate
    Monthly repayment
    8.99% p.a.
    9.35% p.a.based on $30,000
    over 5 years

    Heritage Bank discounted rates for borrowers with excellent credit. Available loans starting from $5,000 to $50,000. Your choice of loan terms up to five years. Extra repayments allowed, but may incur fees.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 8.99% would cost $37,606.30 including fees.

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    Details
  • Personal Loan

    Unsecured, Fixed, Exceptional Credit

    interest rate
    comparison rate
    Monthly repayment
    6.57% p.a.
    6.57% p.a.based on $10,000
    over 3 years

    Borrow from $5,000 to $50,000 with a Plenti Unsecured Personal Loan. Flexible loan terms of 1 - 7 years. $0 Monthly, $0 Early Repayment Fees and $0 Exit Fees. Get a rate estimate without impacting your credit score. Once approved, you could receive your funds in as little as 24hrs.

    Repayment terms from 3 years to 7 years. Representative example: a 3 year $10,000 loan at 6.57% would cost $11,340.11 including fees.

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    Details
  • Debt Consolidation Loan

    interest rate
    comparison rate
    Monthly repayment
    5.86% p.a.
    6.67% p.a.based on $30,000
    over 5 years

    Roll multiple debts into one loan to streamline your finances with one set of repayments and one interest rate. Competitive fixed interest rates with no monthly or early repayment fees and flexible repayment options. Easy online application and funding in as little as 24 hours (subject to approval).

    Repayment terms from 3 years to 7 years. Representative example: a 5 year $30,000 loan at 5.86% would cost $35,256.99 including fees.

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    Details

* WARNING: The Comparison Rate combines the lender's interest rate, fees and charges into a single rate to show the true cost of a personal loan. The comparison rates displayed are calculated based on a loan of $30,000 for a term of 5 years or a loan of $10,000 for a term of 3 years as indicated, based on monthly principal and interest repayments, on a secured basis for secured loans and an unsecured basis for unsecured loans. This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

^See information about the Mozo Experts Choice Personal Loan Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

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