Summer is wedding season, an event that can bring both joy and financial stress to couples.
As marriages become more elaborate and social media-worthy, so are the lengths that people will go to pay for them.
According to a report in The Washington Post, online lenders issue up to four times as many wedding loans as they did a year ago. The’ wedding loans’ often pay for extras such as custom calligraphy, doughnut displays and Instagrammable venues.
Earlier this year, Mary Naklicki decided to take out a $10,000 loan for her daughter’s wedding, Dianna Naklicki.
“It was easy, simple and we didn’t want her to have to pay for anything,” Mary Naklicki said, “Good Morning America.” “When I got married, my parents paid for our reception so that’s what we’re doing.” Mary Naklicki said the interest on the loan was between 10 and 12 percent, which she considered to be cheaper than a credit card. She said she pays a little more every month and in three years it should be paid off.
“I got married in 1977, so it was $10 a person back then,” she said. “Today, it’s $110[ per person], so just to give you an idea.” Mary Naklicki turned to Upstart for her loan, one of the many wedding-specific loan companies.
“Just in the last year it’s been a 144 percent growth in wedding loans,” David Girouard, co-founder and CEO of Upstart, said. “A personal loan generally is far less expensive than a credit card. Our loans generally are about 5 percentage points lower, on average.”
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