My daughter got married last year and we paid for everything. We had a year to plan and if we could not pay cash for something, it was cut from the list. We are in the middle of the “year of weddings.” A number of our daughter’s friends, as well as our friend’s kids, are getting married. We have been to two weddings already this summer, with two more to go. The most recent wedding we went to was paid for by the bride and groom. It was a very nice DIY wedding with all of the important aspects part of the evening. Some engaged couples want it all, but do not have the means to pay for it. I just read about Upstart, a so-called fintech lender.
The average wedding loan Upstart approves is $11,000 for either a three, five or seven-year term. The annual percentage rate, which is the rate charged for borrowing and represents the yearly cost of the loan, can fluctuate between 5 percent all the way up to nearly 36 percent, depending on the applicant.
That is just crazy! If you think it is ok to borrow money and make payments over many years to pay for your wedding, I hate to know what your ideas are for such things as buying a house, having kids, or retirement. In my opinion, this is not a sound money attitude to have toward life. Taking a loan for college, a car, or a home is one thing. If you are willing to accept that it is ok to take a loan for a wedding or vacation, you may never have cash reserves, and may never be able to retire.