Using a loan to help finance your wedding24 October 2017
Using a wedding loan to help finance your big day
If you’re one of the roughly 250,000 couples getting married in the UK this year then you’re probably busy viewing venues, trying on dresses and picking your ideal wedding cake filling. But have you worked out how you’re going to pay for it all?
According to Brides Magazine, the average cost of a wedding in the UK is now as much as £30,000, so it hardly comes as a surprise that those looking to tie the knot in the near future may have to borrow to cover the cost of their big day, even though, according to TheKnot.com, a reported 44 per cent of wedding costs are paid for by the bride’s parents.
What is a wedding loan?
A wedding loan is a personal loan that can be used to help increase the money you have to put towards the cost of your wedding. We’ve pulled together some helpful tips on budgeting and wedding loans to help you decide whether using a personal loan to help finance your wedding is right for you.
Creating a wedding budget
Start by creating a wish list of everything you’d like to have at your wedding and attach a price to it. It’s not the most romantic task, but you’ll soon see just what it might cost to hold one of the biggest events in your life. The better you understand your budget, the better you’ll be able to cut it back. Don’t worry about the total for now, the next task is finding ways to make savings.
Costs will come from everything, from the number of guests and size of your venue, to the time of year, with weddings held between May and September being the most costly. Then there’s catering and entertainment, plus extras such as wedding photographers, right down to stationary and gifts for your guests. Be prepared to cut anything you can do without.
Ways to save on your wedding costs
Switch up the venue – popular wedding venues are always booked up well in advance, not to mention the cost to hire some of them. Think outside the box (or the stately home), from quirky non-traditional venues, to country inns and even campsites, and you might find a more unique, and cheaper alternative that suits your style.
Make your own entertainment – the cost of entertaining your guests at the reception could surprise you, with wedding bands charging potentially several thousands of pounds for a set. If you’re a big music fan, why not make your own party playlist – you can even get your guests to add their requests.
Cutting down catering costs – you can end up spending a lot of time eating on your wedding day, with wedding breakfasts, a big meal at the reception, plus the wedding cake too! There are cheaper and more fun options than the three course dinner, try an elaborate buffet, or even a BBQ menu.
Advantages of a wedding loan
With a solid idea of what your wedding might cost, it’s time to work out where the money is going to come from. You might have already started saving hard for your big day. The downside to saving of course is that it takes a long time to do. If you’re not keen on hanging around then a personal loan might be a way to bridge the gap in your finances and have you walking down the aisle sooner rather than later.
Personal loans also have an advantage over some other kinds of borrowing in that they come with a fixed repayment schedule, meaning that you’ll know when you will start repaying the loan and finish. This will help you budget your finances in the long run.
Alternatives to a wedding loan
You might be tempted to pay for your wedding expenses by using a credit card. Introductory offers on credit cards can make this kind of finance seem tempting. But failure to repay what you borrow during the offer period could mean that you begin racking up debt with high interest charges sooner than you think.
Also with no fixed repayments on credit cards, you may find yourself taking longer to pay back the amount than you anticipated, leaving you in debt for longer. Not a great start to your life as newlyweds.
Is a wedding loan right for you?
There are many reasons why you might need to consider borrowing money to help pay for your wedding. A wedding loan can help you cover the essential costs of venues, rings and more, in a way that may be faster than saving and more manageable than other types of borrowing.
A loan shouldn’t be used to cover the whole cost of a wedding. It’s important to take the time to save up and pay for what you can before considering a loan. Choosing the right loan provider is also important. You may consider going to your own bank if they are advertising low interest rates, but bear in mind not all applicants are offered the advertised rates. There is a risk you may you may find out that you have to pay a higher rate than you expected after you applied for the loan. Shawbrook is completely transparent, we provide a personalised quote with a guaranteed rate upfront before you apply, without impacting your credit score. It takes the worry out of wedding planning so you can get back to the good parts.