Weddings can be expensive affairs, as many will tell you. From hiring wedding catering in Sydney, to getting the right dress, and other things, there’s a lot of costs that need to be covered. Weddings are also notable for their trends, which range from the eccentric to the economical.
Peer-to-peer (P2P) lender, RateSetter, did some digging on the latest wedding trend, and noted that low rate personal loans are now becoming more and more popular for wedding couples in the AU. According to the site’s data, about 40% of their customers admitted to having taken out a personal loan during the big day.
The P2P site says that this is due to Aussie couples wanting to minimise credit card debt, explaining that couples don’t really want to worry about financing during their big day, but with the costs of the wedding, from hiring wedding catering in Sydney to getting the right photographer, costs can blindside them, which puts them at risk of making hasty decisions and getting caught in debt.
Contrary to the popular belief that men aren’t as involved with the planning the wedding, RateSetter’s data shows that men were 66% more likely to take out personal loans compared to women, at 34%. Notably, the data also showed that wedding loans were about three times more likely to go towards food, beverages and catering, rather than the money going to the rings or the attire.
RateSetter’s data also noted that quite a few Aussie couples don’t have as much control over their wedding budget as they think, with about 45% of their customers admitting that they underestimated the cost of the wedding.
Wedding loans, financially savvy as they are, are also noted to be more common as a last minute decision, with 43% of their customers saying that they took out the loan less than six months before the big day, with RateSetter CEO Daniel Foggo predicting that it’ll only go up.
He says that demand for personal loans for wedding expenses is on the rise as Aussies are becoming more concerned and savvy on how to finance the big day.