It’s no secret that weddings are an expensive business. Venue hire, cars, bridal gowns, photos, video and the honeymoon can add up.
In fact, according to research analysts IBISWorld, the average cost of a wedding in 2011 was $36,200, and the Australian wedding industry is worth $4.3 billion and is expected to reach $4.7 billion over the next four years. That’s a lot of confetti.
While there are many couples who may have parental support to pay for their big day, there are many out there who have to save for the event themselves. They may already have a mortgage, and perhaps a child or two which makes it hard to put enough away for a wedding.
Aussie’s executive chairman and founder John Symond said taking out a personal loan may be a smart alternative to saving for years for the big day, or using a credit card for some of the expenses.
“Taking out a personal loan can be a smart thing,” he said
“The fundamental problem with credit cards is you never pay off the principle. They’ve got a minimum repayment and it barely covers your interest, so you never actually pay the debt off.”
Mr Symond strongly encouraged couples to save as much as possible, but said a personal loan was a good option to meet the shortfall.
“You’re better off being disciplined and taking out a loan over a shorter period of time and every month making regular payments bringing down the principle and interest,” he said.
*“Even borrowing extra on your mortgage, may be a mistake as while the interest rate is lower you maybe tempted to take a lot longer to pay it off and therefore you get charged a lot more interest in the long run.”
Owner of Northern Beaches Wedding Expo and experienced wedding photographer and videographer Richard Alaba said it was common for couples to meet all wedding costs themselves, particularly if they were a little older and more established.
“Different regions in Sydney have different trends when it comes to weddings, and it can depend on the culture,” he said.
“In the western suburbs, weddings tend to be larger and there is strong parental support, but here on the Beaches it is a bit more laidback and casual.”
IBISWorld senior analyst Craig Shulman said couples were looking for value for money, but that it was most likely savings would be found on the groom’s side, rather than the bride.
“The secondary clothing would most likely be diminished in expenditure, getting groomsmen to wear their own suits, that type of thing,” he said.
“People are spending less on photography, taking advantage of cheaper, digital technologies, but what they save there is simply shifted into other parts of the wedding budget.”
“You find around 60 per cent of people actually go over budget with their weddings,” Mr Shulman said.
If you walked down the aisle recently and have any cost cutting tips to share please be sure to post a comment below!
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