Your wedding is undoubtedly going to be one of the most memorable moments in your life. From picturesque venues to delicious catering, nobody can blame you for wanting this day to be as perfect as possible. With all of these additions, unfortunately, can come a relatively hefty price tag.

Instead of letting a tight budget come in between you and your dream wedding, many people find it useful to take out a wedding loan.

What is a wedding loan?

If someone finances their wedding, it means that they’ve taken out a personal loan to pay for their wedding. The money can be lent from either a credit union, bank, or an online lender such as QuickCash. Couples can borrow the needed cash on condition that they’ll pay it back in instalments over an agreed period, usually with interest.

How much do weddings cost?

According to New Zealand Weddings, Kiwi couples spend an average of $30,000 on their wedding. As much as everyone would like to think theirs won’t be anywhere near this much, our cost breakdown below shows how quickly wedding expenses can add up.

The costs referenced below come from My Kiwi Wedding.

Venue costs

For many New Zealand weddings, the venue will cost around $2300. While this figure usually also includes the chairs, tables, basic lighting, and linen, it’s still a large amount of money for most people. Rather than paying even more for two venues, it’s become more common to have the ceremony and reception at the same venue.

Flower and decor costs

It’s not a wedding without bouquets, centrepieces, and various decorative floral arrangements. The price of these flowers and decor for a whole wedding setup usually sits around $600.

Catering costs

It typically costs around $10,000 for a standard wedding buffet and alcohol. With this high price tag, sit-down meals are frequently being switched for cocktail-style nibbles.

Wedding attire

From the dress to the makeup to the hair, getting prepped for the big day can easily dent the budget, with the average cost of wedding attire adding to around $3,000.

Cost of the photographer

Despite the quality of mobile cameras continuing to impress, most couples still enjoy the quality of shots they get from a professional wedding photographer. With this decision comes an average bill of $3,000. This amount will often decrease or increase depending on the photographer’s experience and the amount of time they have agreed to work on the day.

For those wanting a video of the wedding, be prepared with even more cash. A videographer is likely to cost even more due to the amount of time that will need to be spent editing.

Music and dancing

Dancing at a wedding is generally a must. With bands costing between $750 to $4000 and DJ hire being around $2000, it’s evident that a boogie can come at quite the expense.

Cost of the marriage licence

At least three days before getting hitched, couples need to get a marriage licence to confirm it’s legal for them to marry. This licence will generally cost between $150-$250 depending on the location of the ceremony. For more information about getting a marriage licence, visit the official NZ Government marriage services website.

With all these costs combined, it makes sense why many people find it useful to take out a wedding loan.

Is it a good idea to get out a loan for a wedding?

Taking out a wedding loan allows couples to have the wedding of their dreams without being restricted by their current finances. By having access to these necessary funds, they can enjoy their special day to the fullest.

Therefore, as long as a couple can afford to make regular repayments, a wedding loan can a good idea for some people.

Can you finance a wedding dress?

The wedding dress is most certainly the focal part of a bride’s special day. As a result, it shouldn’t come as a surprise that wedding dresses can indeed be financed as part of a wedding loan.

What can I use a wedding loan for?

In addition to the dress, any other wedding-related expenses can usually be financed. From the wedding ring to the venue, to the catering, couples can generally borrow the necessary funds as long as they meet the lending criteria.

What do you need to apply for a wedding loan?

Before a couple can be lent the money to pay for their wedding, they’ll need to fill out an application form. Although each lender may have their own unique requirements, all forms generally require the same information. To make it easier, we’ve compiled a list below.

The cost of the wedding

With the average cost of a New Zealand wedding in mind, a customer will need to start estimating how much their wedding will cost. Having this amount is essential for the lender to know the size of the loan. As they consider the number of guests and the type of wedding they’re after, a rough figure should begin to form.

Frequency of repayments

Another critical part to structuring the loan is the frequency of repayments. A customer can generally pick between either weekly, fortnightly, or monthly instalments.

Current financial commitments

Financial information such as bank statements or payslips will need to be provided by the customer to prove to the lender they can back the loan. By showing that their income is higher than their expenses, the lender can be confident that they’ll get their money back.

Driver’s license and address

The lender will need to verify the customer’s identity before handing over the necessary funds for their wedding. The customer can do this by providing their driver’s licence and address. If two people are applying for a joint application, evidence of both identities will likely be required.

Current assets

If the wedding loan is secured, the customer will need to state which asset they can use as security, such as their car. This security simply means that if they can’t repay the loan, the lender can take ownership of this specified asset and sell it to retrieve the money owed.

For more information, read our article “Secured loans vs. unsecured loans – What’s the difference?”.

How do you pay off your wedding loan quickly?

After the wedding, couples usually want to pay off their wedding loan as soon as possible. While it may seem like a never-ending task, there are a few simple steps that can help speed up the process.

Before doing so, it’s typically a good idea for customers to check with their loan provider that there are no early repayment fees.

At QuickCash, there are no penalties for paying back your loan early. As a result, the money can be paid back in full, at any time, without any extra cost.

Tips for paying off your wedding loan

Round up your payment

Typically, couples find it easier to pay back their loan if they start rounding up their payments. For example, if they usually pay $320 each month, rounding it up to a $350 monthly payment will quickly begin to reduce the size of the loan.

Make one additional payment

If a customer can’t afford to round up repayments, they usually will try to make one extra payment at least each year. People will generally choose to do this after receiving a tax refund or bonus from work.

Set up automatic payments

Customers will usually set up an automatic amount to ensure that they never miss a payment. By doing so, they avoid receiving late payment fees.

Cut unnecessary costs

Once the wedding is over, it’s generally best for customers to cut unnecessary expenses to help them pay back their loan faster. Doing so can be as simple as packing lunch instead of buying it at work.

For more information about budgeting, read our article “Tips for Budgeting and Saving Money“.

Earn additional money

As expected, the more money someone has, the easier it is for them to pay back their loan. As a result, customers will often sell their old clothes online or pick up extra shifts at work. People also sometimes make extra money by completing online surveys, or by doing freelance work.

With the accessible option of financing your wedding, we hope you’re feeling slightly more relieved about planning your big day. If you have any questions or want to apply for a wedding loan, don’t hesitate to call us on 0800 784 252 or apply online now.

Disclaimer: This article is intended to provide general information only. It does not take into account your financial needs or personal circumstances. It is not intended to be viewed as investment or financial advice. Should you require financial advice you should always speak to an Authorised Financial Adviser.