Out of all events in our lives, weddings hold a special place. Most people want to celebrate a brand new chapter of their life in a grand way. But a grand wedding comes with a hefty price tag. If you are planning to tie the knot soon, then finances must be on the top of your list of concerns. A lot of people in the UK take personal loans for a wedding to cover the expenses. Let us understand whether borrowing a loan is a good idea.
What is a wedding loan?
A wedding loan is an unsecured personal loan that you may borrow for utilizing the funds for your nuptials. You do not have to provide any security or collateral. That means your assets are not at any risk of being possessed by the lender for non-repayment. Also, you can spread the cost of the repayment over several months. It will ease down the financial burden that you may have to face after getting hitched.
How much does the average wedding cost in the UK – 2020?
The average cost of a wedding in the UK is £30,000. However, couples can also get married by paying a mere amount of £50 at a register office. The overall cost of a wedding largely depends on the type of wedding the couple wants. Some may want to say “I Do” in a grand and luxurious way with all their friends, and families. While some may want to keep it private and well-within their closed ones. Here’s the breakup of the costs associated with a wedding spread over different ranges.
|Wedding Costs||Lower Range||Median||Upper Range|
|Wedding & Reception Venue||£500||£5,500||£10,000|
|Photography & Video||£500||£2,500||£4,000|
|Engagement & Wedding Rings||£250||£3,000||£10,000|
|Hair and Makeup||£80||£500||£1,00|
|Headdress and/or Veil||£30||£150||£250|
|Other Wedding Jewelry||£40||£150||£500|
|Total Wedding Cost UK||£6,275||£29,870||£67,600|
What is the best way to pay for a wedding?
Wedding is a once in a lifetime event and thus, we strive it to make it perfect and memorable. Here are a few ways to pay for a wedding:
1. Use your savings
Consider using your savings for the event rather than borrowing money. This will lower your burden to a great extent. But before you jump in to utilise your saving pot – it is important to understand what were you saving this money for? Were you saving it for a deposit for your new home? If yes, then consider other ways to finance your big day.
2. Credit cards
Using a credit card to pay for your wedding expenses is another good financing method as long as you pay them off in full and on time. It will be much better if you have a 0% interest credit card. With such cards, you will get a period to repay the amount you have used without any added interest. But remember, if you miss that certain timeframe, you will have to repay the credit card company the amount you owe along with the interest and other charges.
3. Personal loans
Unsecured personal loans for a wedding are a great way to cover the shortfall. You could borrow the money that you need at a certain rate of interest. You do not have to worry about your home or assets as a personal loan doesn’t require any collateral. The total cost of a wedding loan depends on the APR that you get.
4. Friends & family
It is obvious that your loved ones will gift something on your special day. But if you think you can do without those gifts, ask your friends and family to crowdfund your wedding. What can be a more memorable gift than this?
How much can you borrow for your wedding?
The amount that you can borrow for your wedding depends on the following factors:
- The relationship you share with your credit i.e., your credit score
- How much you earn every month and also your expenses
- Your current employment status
These are the basic things that lenders consider while assessing your profile to fix an amount that you can borrow. Do not borrow an amount that you cannot afford to repay. Discuss your “loan borrowing plan” with your partner as some people never give in to the idea of starting their new life under debt.
How do I apply for a wedding loan?
Follow these 2 simple steps to apply for a wedding loan in the UK:
1. Prepare your budget
Calculate the amount that you need. List down everything that comes to your mind and determine how much amount will be enough for covering the costs. If you are looking for ways to control your wedding budget, then cut down on spendings that you can easily do without.
2. Compare Loans
Once you know how much you want to borrow, it will become easier for you to compare loans. Start by comparing the APRs and interest rates that you receive from various lenders. Make a list and skim through it. Choose the lender that offers you the lowest APR. Explore and shop around before you make your decision to get the best rate available.
Undoubtedly, a wedding is a special occasion that gets etched in our memories for the lifetime. However, do not get caught up too much with the emotions. Plan a wedding according to your financial capabilities to have a debt-free life after you say “I DO” under the altar.