card guide
Wedding Loans

To Have and to Hold

Potentially, your wedding day is the best day of your life. Whether you are going for an elaborate set up with all the relatives and friends you can muster or a quiet, simple ceremony, getting married can be very expensive. And that’s not counting the honeymoon! The average wedding in the UK today costs £15,000.

So, are there such things as loans designed to ease the financial burden of the Best Day of Your Life?

Where the burden lies

Traditionally, it was the bride’s parents who were expected to pay for the wedding. These days not only do the groom’s parents often help out but the couple themselves like to be independent and recognise the financial burden the wedding can place on their parents, so they often opt to pay for it themselves.

Today, about seventy five percent of couples pay for their own wedding and about 25% of those choose to take out a loan to pay for the Big Day.

The answer is yes, what’s the question?

There are a huge number of companies falling over themselves to lend you money. Whether you are a home owner who can take out a secured loan or somebody with a poor credit history, just shop around and you will find a lender that is right for you. Remember that a secured loan, one in which your house (for example) is put up as collateral in case you fail to meet the monthly repayments, will offer a lower interest rate than an unsecured loan.

A loan is a loan is a loan

The names of the products in the loans market may differ, but looking around one gets the distinct impression that the companies are basically labelling the loans a “wedding loan” or a “personal loan” just to attract customers who have these particular events to finance. It’s like a branding exercise in many ways. So it would seem it doesn’t really matter whether you apply for a ‘personal loan’ or a ‘wedding loan’.

What does matter is whether you are intending to take out a secured loan to help pay for the Special Day, or an unsecured loan. The APR interest rate will vary according to your personal circumstances and the term of the loan.

The Bride wore… what?

What is clear is that wedding loans can start very low. Some companies are willing to lend as little and £250! Quite what £250 will enable the bride to wear at the altar is anybody’s guess.

Most companies will offer unsecured wedding loans, so even if you are renting a property and have a low credit rating or CCJ’s you will still be able to find a suitable lender. Most commonly the length of the loan will tend to vary from three to ten years.

Every silver lining has a cloud

A word of warning, as with all borrowing you must judge how much you want to borrow sensibly in the light of your income. Weddings are particularly emotional occasions. Because of this, some people feel that in order to guarantee the day is so very special for everybody who attends that they have to spend, spend, spend to make it happen. This is simply not true. Yes, you want a photographer, yes, you want a cake, yes, you want to look fantastic, but the fact that you and your partner are in love and are (hopefully) intending to spend many years together will actually count for far more to the guests than any amount of money spent on the frills and impression of the day created by just throwing money at it.

Be wise: for richer and for poorer, think sensibly about all your borrowing needs.

Posted on: [ November 03, 2017 ]       Add to   Digg it   Add to Blinklist   Add to FUrl   StumbleUpon