- Wedding loans can help turn big-day dreams into reality, but the repayments could last long after the honeymoon ends.
- Personal loans, credit cards and lines of credit each come with different costs and risks.
- Before borrowing, weigh up the extra spending power against the cost of interest and repayments.
Getting married is one of the biggest and most exciting decisions many people make in their lifetime. And while your special day is bound to be wonderfully romantic, chances are, it will also be costly.
The average Aussie wedding comes with a price tag of $38,252, according to more than 4,000 engaged and recently married couples surveyed for Easy Weddings’ Wedding Industry Report 2026.
As everyone will tell you, mention wedding to a caterer and the price of the cake doubles. No wonder that the majority of couples in Australia choose to take out a loan to cover wedding expenses, according to ASIC’s MoneySmart.
If you’re thinking of taking out a loan, first stop to consider the benefits and drawbacks, and what type of loan you will need.
Can you get a personal loan for a wedding?
When it comes to financing a wedding, many Australian couples turn to personal loans. Personal loans allow people to borrow a certain amount of cash (often up to $100,000) for a set amount of time – generally between one and seven years.
But the amount and time frame in which you wish to borrow aren’t the only factors you might want to consider before taking out a wedding loan.
There are two big factors to consider with personal loans. Personal loans can offer fixed interest or variable interest rates. They can also be secured or unsecured.
A fixed-rate means interest rate certainty perhaps at the expense of flexibility, while variable-rate loans can fluctuate but might offer more flexibility such as extra repayments.
A secured loan sees another asset used as security against a loan. Thus, secured loans are typically less risky for lenders and can offer lower interest rates than their unsecured counterparts.
Not everyone can take out a personal loan, however. Aussie lenders will generally require a borrower to be:
- 18 years or older
- An Australian citizen, permanent resident, or have a valid visa
- Employed and/or receiving regular income
- In possession of a good credit rating
If you don’t entirely fit that brief, it could be worth chatting to a broker or lender to assess your options.
Joint personal loans
While personal loans are traditionally taken out by one person, couples might wish to apply for a joint personal loan.
That means both parties are responsible for the repayments and the debt.
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Using a credit card to pay for your wedding
Credit cards have been in Australia for nearly 50 years and have helped many couples finance their wedding days in that time.
A credit card allows you to access debt as you need it, with your lender sending a periodic bill. Often, if you pay back all you’ve spent in a period before that bill is due, you won’t face any interest on your purchases.
Some credit card products also offer rewards, allowing a person to rack up points they can spend elsewhere (honeymoon, anyone?).
However, there’s typically a limit to how much you can put on a credit card in a given period. The interest fees that credit card debt attracts are also generally higher than those offered by a personal loan.
You will also have fewer days to pay off the loan without accruing interest. Credit card interest can be significantly higher than personal loan interest.
How a line of credit works for wedding costs
If neither of those sound appealing to you and your sweetheart, you might be more enticed by a line of credit, especially if you’re using your home loan to access it.
A line of credit gives you access to a predetermined amount of money. Under this type of loan, you’re only charged interest on the money you’ve used to, say, pay the deposit on your wedding caterer.
The remaining balance remains at your disposal, free of interest charges until you need it.
Line of credit loans are often accessed through your home loan lender. As such, while the interest rate might be lower, it is stretched out over your loan term, which could mean thousands of extra dollars in interest paid.
Pros and cons of taking out a wedding loan
As with any financial decision, there are benefits and downsides to taking out a wedding loan. Here are five that might be worth considering.
Pros of taking out a wedding loan
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More spending power – Access extra funds to cover major expenses and create the wedding you want without waiting years to save.
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Spread the cost over time – Repay the expense over months or years rather than draining your savings in one hit.
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Keep your savings intact – Preserve your emergency fund or house deposit instead of using all your cash on a single day.
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Predictable repayments – Fixed-rate loans offer consistent repayments, making it easier to budget after the wedding.
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Access funds upfront – Pay deposits and suppliers as required, even if you haven't saved the full amount yet.
Cons of taking out a wedding loan
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Interest and fees – Borrowing money comes at a cost, meaning you'll likely pay more for your wedding than the original price tag.
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Starting married life with debt – Loan repayments can linger long after the celebrations are over, potentially putting pressure on your finances as a couple.
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Potential to overspend – Easy access to credit can make it tempting to stretch the budget and spend more than originally planned
How to save money when planning a wedding
There are plenty of ways betrothed couples can stretch their wedding budget.
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Trim the guest list – Fewer guests generally means lower venue, catering and drink costs. Food and beverage packages alone can add hundreds of dollars per head.
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Get married mid-week or during the off-season – Venues often charge less for weekday or off-peak weddings, potentially saving hundreds or even thousands of dollars.
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Swap expensive traditions for cheaper alternatives – Consider cost-effective substitutes, such as a champagne tower instead of a traditional wedding cake.
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Embrace DIY and upcycling – Handmade decorations and repurposed wedding items can reduce costs while adding a personal touch.
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Set a realistic budget early – Agree on a spending limit before planning begins and identify which elements matter most to both partners.
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Allow for a contingency buffer – Leave some room in your budget for unexpected costs and price increases.
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Stick to the plan – Avoid last-minute additions and impulse upgrades that can quickly blow out your budget.
First published in July 2023
