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Saying ‘I Do’ to Your Perfect Wedding: How a Personal Loan Can Make It Possible

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Your wedding is the start of a new chapter. As you write this new chapter together, you'll often find that your financial priorities change and that financial planning becomes more important than ever. Spending big on your dream wedding can jeopardize these financial goals if you don't plan carefully. Let's take a closer look at personal loans for weddings and how the right financial product can make your dream wedding a reality without setting you back financially.

Understanding the Benefits of a Credit Union Personal Loan 

A personal loan gives you the freedom to spend funds however you see fit, whether it's booking your dream venue or splurging on a gorgeous wedding dress.

While major banks primarily generate profits for investors and shareholders, credit unions follow a different model and use profits to pass on savings to their members. Loans for weddings tend to be more affordable if you go through a credit union, and you can generally find more flexible options since credit union representatives can take the time to work with each applicant.

Before applying for a personal loan, it's important to ask if borrowing makes sense for your financial situation. A credit union representative can help you figure out how loan payments will fit into your budget and assist you with financial planning.

Tailored for Weddings: Financing Your Wedding With a Personal Loan

The average cost of a wedding has reached $29,000 and keeps increasing due to inflation and other factors.

Personal loans for weddings allow you to borrow based on your individual needs. Once you have a wedding plan in place, you can figure out a budget and borrow the exact amount you need.

Not borrowing more than you need will keep the cost of financing your wedding down, and you can find a product that works for your finances by comparing loan durations, interest rates, and other fees.

With 19.1 million Americans holding an unsecured personal loan, borrowing without collateral is the most common option. However, you can explore the possibility of applying for a secured loan to benefit from a lower interest rate or a longer loan term.

Exploring Wedding Expenses: Budgeting With a Personal Loan

Wedding expenses can vary based on the size of the event you're planning. Here's what you can expect to spend money on:
  You'll also have to budget for a DJ or band, a photographer, a wedding planner, flowers, wedding favors, transportation, and more. Some couples also include engagement and wedding rings in their budgets, an expense that often exceeds $4,000.

Staying within budget can be challenging, and 54% of couples end up spending more than they had originally planned. Personal loans for weddings can help you stay within your budget by giving you access to a dedicated fund for your wedding. You can plan your wedding expenses based on this fund and avoid charging additional expenses on credit cards with high interest rates.

Flexibility in Repayment: Finding the Right Fit for Your Financial Goals

Borrowing from a credit union means you'll get to work with a representative who can put together a personalized loan that works for your needs and budget.

You can adjust the loan term based on your monthly budget, keeping in mind that the rule of thumb is to avoid spending more than a third of your income on debt payments. Borrowing based on your monthly budget will help you stay on track, and you'll get the benefit of building a history of on-time loan payments for your credit scores.

If you can afford to make larger payments, you can pay extra on the loan principal to pay your personal loan off faster and save on interest.

Choosing the Right Credit Union for Your Personal Loan

Shop around for personal loans and compare what different credit unions are offering.
  • Compare interest rates, loan terms, and monthly payments
  • Find out if the interest rate is fixed or variable
  • Pay attention to application fees and origination fees
  • Ask if there is a prepayment penalty if you pay off your loan early
  • Avoid credit unions with high late payment fees or unreasonable payment processing fees
Once you become a credit union member, you'll have access to additional financial products and can work with a representative to create a financial plan. Use these resources to achieve your long-term financial goals as a couple, such as preparing for a mortgage or saving for retirement.

Plan Your Dream Wedding With Power Financial Credit Union

Getting married is the start of a new adventure that you'll share with the person you love the most. Power Financial Credit Union is here to help you create a financial roadmap for all your short and long-term goals.

Take a look at the different financial products we recommend for newlyweds, ranging from savings accounts to investment vehicles and home loans.