Weddings do not end in Spain. Traditionally, couples would swear eternal love at an altar to start a life together. Parents often took on the costs, considering the early age when connection was celebrated. In 1975, a total of 271.347 marriages were formalized in this context, but times have changed, and in recent years, this figure is around 150,000 according to INE data. Young people now marry later and incur costs more often in a crisis scenario. The photographer is 800 Euros, the gifts for the guests are 900 Euros, the bouquet is 150 Euros, the wedding dress is 1500 Euros. According to the “Basic Wedding Book” published by Bodas.net, the average cost of a wedding in Spain for around 130 guests is around 20,500 Euros. Given that the average salary in 2021 is 1,751 euros per month, for this the couple has to work for six months. Depending on the community, there are different prices. The average cost per guest in Navarra is 229.1 Euros, while in Andalusia it is 108.1 Euros.
Those who have marriage in mind sometimes have to ask for a loan to fulfill their dreams on one of the most expensive days. The proof of this is the significant increase in the number of loans requested for weddings. According to Prestalo’s data, more than 34% growth has been detected in those devoted to such celebrations so far this year. “Credits act as a bridge because the money is then expected to be returned with gifts from guests,” explains Antonio Gallardo, an expert at financial comparison firm Banqmi. Although it should be noted that wedding gifts must be declared to the Treasury in Inheritance and Gift Tax.
The disintegration of the pandemic in terms of restrictions was another factor that also restarted postponed weddings and therefore loans. “The number of unions is still recovering, although not at 2019 levels,” according to the finance expert. On the other hand, the increase in the cost of living also affects the marriage universe. “Inflation will always be reflected in the costs of getting married: food, clothing… Everything has gone up,” says Cynthia Cepeda, brand manager of Prestalo.
Experts explain that a loan to celebrate a wedding can be a solution for those who need extra liquidity, but this will eventually make the event more expensive. “The circumstances will depend on the applicant’s score, whether they are delinquent, whether they have other loans, their salary level, whether they have children, etc.” explains Cepeda. The bank will also ask for documents such as the farm or suppliers’ contract to be sure. The average price of this loan type is between 8% and 10%, which is above the general purpose loan average. According to experts, they are usually returned in about five years in installments ranging from 450 to 500 euros per month. “Normally they are allowed to cancel without problems,” says Gallardo.
Many organizations also offer “wedding accounts,” checking or savings accounts, with special guarantees and insurance for these celebrations. “Separate accounts for links are very popular to make the process more comfortable,” Gallardo says. Even those who wish can add an account number to the invitations where they can make their gifts with a deposit. In addition, these accounts can offer extra services such as wedding list organization free of charge.
Expectation, limiting guests, dates outside of summer, and avoiding extra expenses are all part of good planning. Before defining the day from Prestalo, they suggest making a budget, calculating costs, and adding an unforeseen item. Prestalo brand manager explains that if you choose to request a loan, the advice is “do not claim the loan in installments longer than 12 months, as this can create long-term dissatisfaction.” In line with this, Facua spokesperson Rubén Sánchez states that in order to achieve a healthy debt, it would be good for applicants to compare different providers and see the most suitable one and evaluate their cancellation possibilities. It also warns that there may be “disproportionate” interest rates and fees for late payment.