Why Borrowing Money for Your Wedding Might Not Be Wise

During your wedding day, persistent thoughts about repaying the borrowed money may overshadow your joy. Instead of focusing on your special moment, you might find yourself preoccupied with looming debt. Additionally, the cost usually excludes honeymoon expenses, further adding to financial stress. A wedding loan is essentially an unsecured personal loan where the interest rate depends on the couple’s creditworthiness. Starting your marriage in debt can create unnecessary pressure and hardships from the outset.

If you're considering a wedding loan, weigh the following points beforehand.

Opportunity cost of your money
Each dollar spent has an opportunity cost — other valuable things you could have invested in, like a home or a business. Taking a loan limits your financial freedom by reducing these options and may lead you to miss out on more meaningful financial goals.

It raises your overall wedding expenses
Financing an extravagant wedding through a loan can be costly. For example, borrowing $20,000 at a 10% annual interest rate over 10 years results in monthly payments of around $264, with over $11,000 paid in interest. Ultimately, the total cost of your wedding can climb to $32,000, a significant sum that could instead be put toward a home or savings.

Financial strain leads to material desires
Spending heavily on a wedding can foster a mindset of constant entitlement and increased spending. This often leads to accumulating more debt to support lavish lifestyles, which, if left unchecked, may trap you in long-term debt. Instead, a meaningful, intimate wedding within your means can help set a responsible financial tone, emphasizing quality over extravagance.