Amidst the chaos of rising household bills and increased interest rates, engaged couples planning their weddings may be finding that their budget isn't stretching as far as they expected.
After years of delays thanks to the coronavirus pandemic, you may not be open to the idea of postponing your big day in order to save more money – especially if you've already put down deposits for your venue or suppliers. So what are your financial options when planning a wedding during the cost of living crisis?
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Fear not, we turned to Brean Horne, personal finance expert on behalf of NerdWallet UK, for help. "The average cost of a wedding in the UK rose a staggering 90% to £17,300 in 2021, compared to the previous year, according to a recent survey of newlyweds," he explained, adding that all elements of a wedding – from the bridal gown to the photographer – don't come cheap.
"Relying on cash gifts from elder family members may no longer be an option in the current climate, and personal savings or nest eggs may also have taken a dent in order to cover necessary expenses elsewhere," Brean continued.
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Here are Brean's four top tips to finance your wedding, and the pros and cons you need to know before making any rash decisions.
Take out a wedding loan
Pro: Spend the money however you want
Con: Could be paying back money for several years
"One option is to take out a personal loan that can be used to pay for all, or part of, the big day. This type of loan is unsecured and borrowers are generally able to spend the loaned money in whichever way they see fit.
Planning your dream wedding in the cost of living crisis can be expensive
"It will allow couples to borrow a fixed sum of money over a pre-determined period of time, and at a fixed rate of interest that will be paid back over a time that suits a couple's budget (typically between one-seven years). If financial circumstances change over the coming years, there may also be an option to increase repayment amounts to reduce the loan term.
"With certain lenders, couples can apply online and – if deemed eligible – could see the loan arrive in their accounts within a day or two," he explained.
Look into a 0 per cent credit card
Pro: Only pay the minimum monthly amount
Con: Harder to stick to a budget
"Another option to consider to fund a wedding is with a credit card. If your credit score allows, an introductory or promotional rate could offer 0 per cent interest on card purchases, so long as the outstanding balance is paid off in full before offers expire and higher levels of interest kick in," Brean advised.
Wedding loans and credit cards are potential options for couples
However, he went on to note the downsides to this option. "It's worth noting that, unlike a personal loan, taking out a credit card to help pay for a wedding comes with less structure surrounding monthly repayments.
"While beneficial in terms of having the option to only pay the minimum monthly sum during particularly expensive periods, it could also prove harder to stick to a predetermined wedding budget. This is due to the possible temptation to make further transactions on your credit card." So perhaps you need to assess how disciplined you plan to be!
Assess your existing wedding budget
Pro: Handmade, sentimental wedding features
Con: May have to cut certain elements
If you're not open to loans or credit cards, then reassessing what you already have available is your best option, Bream said, and this may mean altering or cutting things out of your dream wedding day.
"There are many ways to cut back on the amount spent on a wedding day, from making or asking friends or family members to make the cake and canapes, to cutting out extras, like a wedding car or immediate honeymoon.
"Couples should sit down together, assess their monetary budget in light of the current financial climate, and prioritise where they want to allocate their funds, as well as where they can afford to cut costs or rule certain elements of the day out," he continued.
Borrow from family members
Pro: Don't have to worry about interest rates
Con: Can become awkward if the terms aren't clear
Contracts may help if you borrow money from family members
The bride's parents funding the entire wedding is an outdated tradition, with many couples saving up for their own big days. However, if you are lucky enough to share the costs with your loved ones, the most important takeaway is making sure everyone is clear about the terms of the loan.
Bream explained the easy way to get clarity is with a contract. He concluded: "Despite the potential issues that could arise from borrowing money in this manner, as long as all parties are involved about the clear terms and repayment structure of this casual loan, and that everything is written down in an informal contract, it could help in terms of financial flexibility and reducing the interest."
Before making any big financial decisions, make sure you do your research about the best option for your situation.
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