Hear wedding bells? It may be time to consider a personal loan for your big day

Polly Fleeting

Wednesday 11 March 2020

It’s wedding season lovebirds, or wedding month for that matter, so get ready for all things flowers, champagne, canapes and all the bills that come with them. 

Happy couple took out a personal loan to help fund their wedding  

According to Easy Weddings’ 2019 Australian Wedding Industry Report, 37% of couples got married in Autumn, with March standing out as the most popular month with 19% choosing to tie the knot this time of year.  

It also revealed that nation-wide, the average original wedding budget sits at $22,055, and while couples expect to spend just shy of $27K, the actual average cost of a wedding jumps up to $32,333 once the day is done. 

The report also revealed that where you intend to get married can make a sizable difference to that final bill. Here’s a breakdown of the cost of getting hitched in Australia from state-to-state: 

StateAverage Cost% of Weddings Australia-wide
New South Wales$36,08233%
Victoria$33,89127%
Western Australia$29,02410%
Tasmania$28,9482%
South Australia$28,6067%
Queensland$24,75918%
Northern Territory$24,6001%
Australian Capital Territory$23,3392%

Never fear, if the growing cost of your fast-approaching Autumn wedding is stressing you out, there could be a few options available to help you pay for what you need to and give you the financial safety blanket you need, like a personal loan. 

While it may feel natural to whip out your plastic to cover your wedding costs, if you end up paying interest on your spending it could leave you more out of pocket. 

According to the Mozo database the average unsecured personal loan rate is 10.84%, while the average credit card interest rate is 17.04%. That’s a massive 6.20% difference. 

Look at it this way...

If you took out a $10,000 personal loan with a 10.84% interest rate, over a two year term, you’d end up making monthly repayments of $465 and paying $1,168 in total interest. 

Whereas with a credit card that has a 17.04% interest rate, if you spent the same amount ($10,000) and paid it off in 2 years, you’d end up paying $500 a month, plus you’d also be forking out $1,847 in interest. 

So with a personal loan, you’d end up saving $679!

Just bear in mind though, a personal loan may only be the right option for people who are economically equipped to pay it back later on. Because while a Cinderella-inspired, white, horse-drawn carriage may be your dream, if it will cause you financial stress for a long while down the track, it may be worth reconsidering it. 

Is it too late to take out a personal loan for a wedding in March? 

The short answer is no, it just depends on which lender you go to. 

Generally speaking, personal loan approval times range anywhere from a few minutes to a few weeks. Bigger banks and credit unions tend to have slower processing times whereas online and peer-to-peer lenders usually have quicker turnaround times - sometimes same-day. 

However, that’s not to say the money will be in your pocket as soon as you apply. It often takes a few business days from approval before you see the funds in your account. So it’s really worth comparing lenders to find a competitive rate and approval timeframe that suits you. 

RELATED ARTICLE: The best personal loans in Australia for 2020

So if you want to start your personal loan search, take a look at the table below or jump over to our personal loan comparison tool.

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