"I got caught up in the moment and proposed. I then realized it was a hasty thing to do and I am not ready for marriage quite yet," Carter, 18, told Us Weekly.
A source told the magazine, "They are just going to be friends now. She still wants to keep dating him but Aaron is not quite sure. He was trying to appease her but came to his senses and realized it was the wrong thing to do."
Carter proposed to Peniche onstage in Las Vegas on Sept. 16.