What’s the best way to pay for your wedding?
23 Mar 2017
Don't get yourself into financial difficulty when trying to fund your dream day; here's some advice from an expert...
Your wedding is a once in a lifetime event and you want to make it as special as possible. However, the costs can quickly add up, so it’s important to choose the right way to pay for your wedding to make sure you aren’t paying more than you need to. Hannah Maundrell, editor in chief at www.money.co.uk, shares her words of wisdom.
Use your savings instead of borrowing money
If you’ve got savings think about using them rather than borrowing money. The interest you’ll be earning on the money is likely to be less than the interest you’d pay on a loan. So, by using your savings, you won’t be paying any extra interest for borrowing money.
Before you use them, make sure you think about what you were saving for and whose money it is. Are you prepared to use your savings even if your partner doesn’t have any? Or would you prefer to go 50/50?
Don’t get caught up in the moment and use savings that you were planning on using for a house deposit. You can’t use a credit card or a loan to pay your house deposit, so it’s better to find a different way to pay for your wedding in this instance.
Using a cashback credit card gives you extra protection on purchases and the bonus of money back too. If you do have savings, use them to pay off the full balance before you start getting charged interest.
Plan in advance
If you aren’t in a rush and are planning your wedding a few years in advance, begin saving now.
Set yourself a strict budget and make sure you stick to it. Break down each part of your big day and decide how much you’re willing to pay.
This means you can shop around to find the best deal - never settle for the first quote you get. Get some comparison from other companies to find out what's realistic and if it isn’t the price you’re willing to pay, haggle, there’s no harm in asking. Just remember, that wedding suppliers' costs will be reflective of their experience and expertise, so do some research before making your choices.
Getting a credit card to borrow for your wedding is only a good idea if can get a good deal.
If you get a 0% purchase credit card, you can spend without paying interest for a set number of months - make sure you get one with a long 0% deal.
This will help you spread the cost of your purchases out interest free and you won’t pay any extra as long as you pay off the balance by the time your 0% interest deal ends.
Another benefit of using a credit card is that you’ll get Section 75 protection. This means anything you buy that costs between £100 and £30,000 is covered if something goes wrong and you’ll be able to get your money back from your provider.
This is an expensive way of paying for your wedding. You should only consider getting one if you can’t pay for it any other way like using your savings or a 0% credit card.
Getting a loan for your wedding will be similar to any other personal loan; you could borrow up to £25,000 for between one and seven years.
How much it will cost you depends on the APR you get (annual percentage rate) which is the interest you pay on the total value of your loan.
Weddings can cost a fortune. If you aren’t in need of lots of new things as wedding gifts, either ask for contributions to your honeymoon or ask for favours. If you have a friend that’s a great photographer, ask them if they’d mind taking your snaps instead of a wedding present. Similar for musicians and DJs - getting live entertainment can cost a bundle, so it’s worth seeing if any talented friends wouldn’t mind taking to the mic for an hour... but be prepared to compromise on quality.