Summer Wedding Loans
Now that we’re into July and
summer proper, wedding season is upon us. Getting married during
the summer months is popular for a variety of reasons, not least
because the chances of good weather are higher. Tying the note during
the summer isn’t the only thing that’s popular, many
more couples are using unsecured personal loans to fund their big
day, unsurprising when according to Sainsbury’s Bank the average
cost of a wedding is £17,000 and this is due to rise 10% per
cent each year.
Sainsbury’s research indicates
that approximately 50,000 couples will borrow to fund their wedding
day and pay for those little, and not so little, extras that make
it a once in a lifetime experience. As with using a personal loan
for any purpose, it’s important to not only be sure of your
reasons for doing it and your ability to repay the loan but also
to shop around and ensure you get the best value for money available.
However Sainsbury’s research indicates that while many people
are willing to take out a loan for their wedding a great many of
them aren’t getting the best value deals available.
While it’s nothing new that
many people take out loans for their wedding or that some consumers
who take out loans pay over the odds sometimes when you consider
how much extra it can cost you and what that money could be spent
on the picture can become a lot clearer. Of the 50,000 estimated
by Sainsbury’s Bank to take out a personal loan to fund their
wedding a large proportion, 34,700, are likely to use a high street
bank or building society. This could cost consumers up to 5.4% more
in interest charges than the best value deals on the market. Not
only does that sound like a lot, it is a lot, possibly as much as
£1,100, which can go a long way to helping a newly married
couple. Nationwide the figure is even more damning, according to
Sainsbury’s £467 million will be taken out in wedding
loans, excess interest payments could cost £13 million.
It’s understandable that
during a stressful period such as organising a wedding, many consumers
will feel they don’t have the time to shop around for the
best deal. However a wedding is just the start of a marriage and
financial security is not to be underestimated especially for a
couple starting out. When choosing a unsecured personal loan, shopping
around and considering non-traditional loan vendors can sometimes
reap rewards for the wily consumer.
21/7//05
More information on wedding loans can be found here,
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