Instagram and Pinterest are convincing more couples than ever before to go into debt for their perfect wedding
- Couples are taking out expensive loans to fund "Instagram-worthy" weddings, according to a new report from The Washington Post.
- Online lenders told the Post that they are issuing up to four times as many "wedding loans" as they did a year ago.
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Young couples are taking out loans to fund "Instagram-worthy" weddings, according to a new report from The Washington Post.
Online lenders told the Post that they are issuing up to four times as many "wedding loans" as they did a year ago as millennial couples drop thousands of dollars to have their dream wedding. Many are spending more on additional services such as custom calligraphy invitations or doughnut displays.
"People are carrying more debt, they want to get married but don't have the funds to do so," David Green, chief product officer at online lender Earnest, told the Post.
Read more: Millennials' preferences are leading to major changes in the wedding industry
Green added that, on average, couples borrow $16,000 for their weddings and pay it off within three years. According to the Post, interest rates range from around 7% to 18%, which is less than for some credit cards. However, other companies can charge as much as 30%, it reported.
It's evident from Earnest's website that it's preying on the Instagram generation. The grainy, vintage-looking photos of couples walking hand in hand along a rugged coastline or in the woods are exactly what you might be saving on your Pinterest board while daydreaming about your wedding. Earnest's tagline even makes a direct reference to the Pinterest-inspired wedding.
"Inspired by Pinterest? Make it happen with low interest," it says.
"Whether it's invitations with custom calligraphy or simply an Instagram-worthy setting, wedding costs add up quickly - and even the most frugal couples sometimes need some extra cash. Using a low-rate personal loan for some or all of your wedding expenses lets you afford your dream day without stressing over every dollar."
And it seems to be resonating, as wedding loans are now the company's fastest growing line of business, Green told the Post.