Large events come with big expectations — and big expenses. Whether you’re planning a wedding, hosting a family celebration, or organizing another major milestone, and starting to tally up the costs, a personal loan might be a helpful solution to make your dream event a reality without derailing your finances.
A personal loan is a type of installment loan where you borrow a lump sum of money from a lender, like a bank or online lender, and repay it with fixed interest and regular payments over a set period. Unlike mortgages or student loans, which are often used for specific purposes, personal loans can be used for almost any legal purpose. A personal loan can be a practical way to cover large, one-time expenses, especially when you want to bring your vision to life without compromising on quality. With fixed interest rates and predictable monthly payments, personal loans offer more control and stability compared to high-interest credit cards. But before you commit, it’s important to assess your total event budget, understand the loan terms from your lender, and make sure the repayment plan fits comfortably within your finances. The goal is to create lasting memories from your dream wedding or other event without adding long-term financial stress or unnecessary debt.
The first step in determining how much you may want to borrow for your event would be to map out the budget and begin a list of what each element costs. From there, you can then calculate how you'll use the loan funds. It is important to talk to vendors before signing contracts to see if they can provide an itemized list of what goes into the cost, to see if all items apply to your event..
Here are some common charges to watch for and ask about upfront:
It’s also important to consider contingency plans for unexpected situations like bad weather, illness, or last-minute venue issues — all of which could lead to extra costs. They say it’s good luck if it rains on your wedding day, but it might also mean moving the event indoors or rescheduling entirely. Ask vendors upfront whether deposits are refundable and what their policies are in the event of cancellations or changes. Make sure these details are clearly outlined in your contract so you understand any potential financial impact from things beyond your control.
Before taking out a personal loan, it’s essential to look at your current financial situation and determine how much you can realistically afford to pay each month. Start by reviewing your income and fixed monthly expenses—like rent or mortgage, utilities, groceries, insurance, and any other debt payments. What’s left over is your discretionary income, and a portion of that can go toward your loan payment.
A good rule of thumb is to keep all your debt payments, including your new loan, within 36% or less of your gross monthly income. However, your comfort level matters more than the math. Ask yourself: Will this payment leave enough room for emergencies, savings, and everyday spending? If the loan stretches your budget too thin, consider borrowing a smaller amount, extending your repayment term (if that reduces your rate), or finding ways to reduce your event costs. Planning ahead ensures that your dream event doesn't turn into a financial burden after the celebration is over.
Secured and unsecured loans are two different types of personal loans that you could explore with a lender, each with its pros and cons.
A personal loan can be a more structured way to host an event without putting large sums of money on your credit card. At Addition Financial Credit Union, we offer personal loans that can fit your needs, and we provide extra perks like payment protection and skip-a-pay for your convenience.
By adding payment protection to your new loan, you’ll have one less thing to worry about during a period of reduced income due to disability, illness, or death, and skip-a-pay gives you some breathing room if you need to put money elsewhere for a month. Our goal is to make borrowing feel empowering, not overwhelming. Visit one of our branch locations or give us a call to explore personal loan options tailored to your needs before you apply.