Jun 22, 2019

Debt-ridden millennials are taking out loans to pay for weddings

Young Americans, already holding record levels of debt, are increasingly taking out loans to pay for their weddings, Abha Bhattarai writes in the Washington Post.

The big picture: A majority of 18- to 37-year-olds don't know when — or if — they will ever pay down their debt, and nearly 20% of those with debt said they expect to die before they are able to pay it off.

Where it stands: "Online lenders say they are issuing up to four times as many 'wedding loans' as they did a year ago," the Post reports — and average American wedding costs are rising. Wedding loan ads are spiking on social media and financial planning sites.

  • Loans are frequently marketed "as a way to fund extras like custom calligraphy, doughnut displays and 'Instagram-worthy' venues."

The bottom line: "Credit cards and family members have funded weddings for years," per the Post, but "financial advisers say these types of online loans take lending a step further, by directly targeting 20- and 30-somethings on their computers."

Go deeper: 20% of millennials in debt expect to die without paying it off

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