Unsecured loans for wedding expenses: are they a good idea?
If you’re thinking of popping the question or getting hitched soon, you might be thinking about looking into unsecured loans for wedding expenses. So, we thought we’d look into whether they’re a good idea (and some ways that can help save a bit of money).
According to a survey by Bridebook.co.uk, the cost of tying the knot has reached an all-time high.
Are you ready to know how much the average UK wedding costs now? Brace yourself!
Are you sitting down? £30,355.
That’s more than the average UK salary!
However, this isn’t entirely because we all want bigger, better weddings.
In fact, the cost of weddings has been subject to considerable inflation. Things like marquees, food and drink and venues have all increased by as much as 25% in the last couple of years, dramatically increasing the cost of getting married!
In fact, even weddings without the bells and whistles cost an average of £17,913 per couple.
As such, it’s not surprising if you’re considering an unsecured loan for wedding expenses.
But are they a good idea?
Unsecured loans for wedding expenses: are they a good idea?
It’s really hard to give advice on whether unsecured loans for wedding expenses are a good idea without knowing the ins-and-outs of your financial situation, so we hope you’ll forgive us for being a little vague here.
But let’s start with the financial stuff, shall we?
If you’re looking to have a big wedding and have no savings, it’s probably not the wisest idea to take out a loan to cover the whole thing.
For starters, most lenders won’t lend you that amount of money. But even if they could, ask yourself, is it worth taking on 5-figures of debt for one day?
That said, if you’re thinking about topping up some savings (or money from relatives) with an unsecured loan for wedding expenses, then that changes the situation slightly.
Not only will borrowing the money let you have more money to budget and negotiate with, but it allows you to spread the cost of the wedding out over a year or two, making the wedding much more affordable in the short term. (Not to mention the side effect of making regular payments and improving your credit score.)
Also, taking out a personal loan with a fixed interest rate means that you’ll know exactly how much you have to pay back each month after the wedding and you won’t get stuck with the payment plans offered by your suppliers or venue.
Finally, borrowing all of the money upfront might give you peace of mind to know that you can afford the wedding and save you lots of stress during the planning process. If that’s important to you, then an unsecured loan for wedding expenses might be worth it.
But what about the non-money stuff?
It is true that taking on debt at the start of your marriage can have knock-on effects and cause you stress during what should be your honeymoon period.
A few years ago, Melanie Taylor, a spokesperson for the Debt Advisory Centre, told Moneywise:
“The harsh reality is that money and debt is the cause of a huge amount of stress and friction in couples and starting married life with an additional, and sizeable, debt from the wedding isn’t ideal. We’d urge couple planning their wedding to take a long hard look at their budget and work out what they can really afford to spend. A more modest wedding may be the best start, financially, to married life.”
So, as with any form of debt, our advice for unsecured loans for wedding expenses is the same:
- Make sure you can comfortably afford the monthly repayments and that they’re not going to leave you stretched every month
- Make sure that you’re 100% sure you want to take on the debt. This isn’t a decision you should rush into.
- Make sure you’re borrowing the right amount of money. (Have you budgeted? Cut some costs? Asked family for help?)
But, if you’re sold on an unsecured loan for wedding expenses, here are five bits of advice to help you keep the cost of the wedding (and the amount you borrow) down:
- Avoid inviting everybody that asks to come: weddings are hard. Your parents want your third aunt Maude that you haven’t seen for 25 years to come, your friends want +1s and there’s always someone you feel obliged to invite. Instead, think about who you want there because, while it might not immediately seem like this, you do have to pay for everybody that comes to the wedding. (Plus, it’s YOUR day.)
- DIY everything: invites, table decorations, favours, flowers… you name it, if you’re crafty and love Pinterest, you’ll be able to DIY a surprising amount of stuff for your wedding, making it more personal and 10x cheaper.
- Consider a midweek wedding: a midweek wedding is far cheaper than a weekend wedding AND you all get to take some time off work and have a mini break. Just let your guests know with plenty of time to book the holiday.
- Haggle, barter and be cheeky: when it comes to weddings, don’t be afraid to barter and haggle your way to a better deal. Suppliers expect this and are allowed to negotiate, so don’t accept the first price they say. Don’t be afraid to be cheeky, either. Ask for free upgrades and extras rather than a lower price can be very effective!
- When booking, don’t mention the “w” word: if you want the best price, say you’re booking for a party. Don’t mention the wedding unless you want the price to go up.
- Make a budget and stick to it: the best way to avoid overspending is to make sure you stick to a sensible budget. (It also helps keep the whole thing stress-free!)
Looking for more wedding inspiration? Head over to our blog to read more articles to help make your wedding planning just a little less stressful.
- Author The Bamboo Team
- Posted 20 May 2019
