Weddings do not stop falling in Spain. Traditionally, couples swore eternal love at an altar to start a life together. The parents, taking into account the early ages at which the link was celebrated, often assumed the expenses. In 1975, in this context, a total of 271,347 marriages were formalized, but times have changed and, in recent years, the figure is around 150,000 according to INE data. Now, young people marry later and bear the costs more often in a crisis scenario. Photographer for 800 euros, gifts for guests for 900 euros, bouquet for 150 euros, bride’s dress for 1,500. The average cost of a wedding in Spain for about 130 guests is around 20,500 euros, according to the ‘Essential Wedding Book’ published by Bodas.net. Taking into account that the average salary stood at 1,751 euros per month in 2021, six months of work for the couple are necessary to pay for it. Depending on the community, there are disparate prices. While in Navarra the average cost per guest is 229.1 euros, in Andalusia it stands at 108.1 euros.
Those who have marriage in mind are sometimes forced to ask for a loan to fulfill their dreams on one of the most expensive days. Proof of this is the notable increase in the number of credits requested for weddings. So far this year, a growth of more than 34% has been detected in those dedicated to this type of celebration, according to data from Prestalo. “The loans act as a bridge because later the money is expected to be recovered with gifts from the guests,” he explains. Antonio Gallardo, expert of the financial comparator Banqmi. Although, it must be taken into account that wedding gifts must be declared to the Treasury in the Inheritance and Donation Tax.
The dissipation of the pandemic in terms of restrictions has been another factor that has made postponed weddings resume and, therefore, also loans. “The number of unions is recovering, although it is still not at the same levels as in 2019,” according to the financial expert. On the other hand, the increase in the cost of living also affects the nuptial universe. “Inflation is always going to be reflected in the costs to get married: food, clothes,… Everything has increased,” he says. Cynthia CepedaPrestalo brand manager.
Experts explain that a credit to celebrate a wedding can be a solution for those who need extra liquidity, but that it will ultimately make the event more expensive. “The conditions will depend on the applicant’s score, depending on whether he is delinquent, if he has other loans, salary level, if he has children, etc.”, he explains. Cepeda. In addition, the bank will request documents such as the contract of the farm or the suppliers to make sure. The average price of this type of credit is between 8% and 10%, above the average for consumer loans. According to experts, they are usually returned in about five years with monthly installments of between 450 and 500 euros. “Normally they are allowed to be canceled without problem,” he says. Gallardo.
Many entities also offer ‘wedding accounts’, current or savings accounts for these celebrations, with specific guarantees and insurance. “Separate accounts for links are very much in style to make the process more comfortable,” he says. Gallardo. In fact, an account number can be attached to the invitations in which those who want can make their gift with a deposit. In addition, these accounts can offer extra services, such as the organization of the wedding list at no cost.
Anticipation, limiting the guests, dates outside of summer and avoiding extra expenses are part of good planning. From Prestalo they recommend making a budget before defining the day, calculate the costs and add an unforeseen item. If you choose to request a loan, the recommendation is “not to demand the credit in a number of installments greater than 12 months because it can create long-term dissatisfaction,” explains the Prestalo brand manager. In parallel, to reach a healthy debt, it would be good for applicants to have compared different providers and see the one that is most suitable, evaluating the possibilities of cancellation, indicates Ruben Sanchez, spokesperson for Facua. He also warns that there may be “disproportionate” interest rates and commissions for late payment.