(FOX NEWS) – Weddings are already a huge financial burden on couples and families, but the coronavirus pandemic has added to the frustration of couples planning to get married this year.
Hundreds of thousands of couples are repaying loans for weddings that haven’t even taken place yet, according to a new report.
Last week, online loan platform Declared loan that 225,000 couples who have postponed their marriage collectively repay $ 3.7 billion in loans they have taken out to finance these celebrations.
That’s an average of $ 16,500 per couple.
“This past year has been devastating for many couples,” Loanry founder Ethan Taub said in the report. “Especially for the percentage of loan repayments for weddings that did not take place.”
“However, we can take a positive assessment of this situation. Perhaps this has highlighted that an exuberant marriage is not always the best option, ”Taub added. “The occasion will be memorable no matter how much you spend on it.”
For his report, Loanry used data that shows approximately how many weddings take place each year, how many weddings have been postponed this year, how many personal loans are taken out to pay for weddings, and the average cost of a wedding.
The platform reported that an average of 2 million weddings take place each year in the United States, with the majority of those weddings taking place between March and October.
According to data from The Knot published in May, 93% of couples in the United States have decided to postpone their wedding celebrations.
Of the 20 million personal loans taken out in the United States last year, 1.5% were specifically intended to help couples pay for weddings, Loanry reported.
The lending platform previously found that couples take an average of $ 16,500 in loans for their weddings, which is just under half the average cost of a $ 33,900 wedding, according to data from February. of The knot.
“You should take financing a wedding using a loan very seriously, and we don’t recommend it,” Taub said. “In fact, finding ways to cut the costs of your wedding expenses is a much more effective alternative. This way, you can avoid unnecessary debt while still enjoying your big day.
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