The Best Ways to Pay for Your Wedding

Your wedding will be a marvellous day, but an expensive one also. Picking the right way to pay for your big day could help you come in on budget.

Use your savings

Using your savings could be the option that is cheapest since you would not be charged with interest for borrowing.

Before you choose to empty your account, ask yourself these questions:

  • Are you saving for a house deposit? If you are saving for a new home, consider keeping your money since you cannot use credit cards or avail a loan to pay for a deposit.
  • What savings rate are you receiving? If you can borrow money interest-free, you might be better off leaving your savings to earn some interest.

If you are planning your wedding day years in advance, you might have the time to establish a budget and save enough to pay for it without borrowing a cent.

If you do not have any money saved up, there are other ways that you can pay for your wedding.

Get a new credit card

A credit card can be an affordable method to borrow the money that you need to pay for your wedding.

Spread the cost and pay no interest

0% purchase credit cards allow you to spend without paying interest for a fixed number of months.

For example, a card with 28 months interest-free means that you will not be charged any interest on things you buy for that period as long as you satisfy the terms of the card.

This means that you can spread the cost over the interest-free free term, and if you repay off the balance before the term is over, you can borrow interest-free.

However, you may only be accepted for this kind of card if you possess a good credit record, and the credit limit that you are offered may not cover all your wedding costs.

Earn rewards

If you have managed to save the money that you need to spend for your wedding, buying everything using a rewards credit card could be a great way to receive some additional perks.

As long as you pay for the balance in full every month with your savings, you could earn air miles, cashback, or other rewards without paying any interest.

However, if you are not able to pay off the balance, the interest that you receive charged could cost you higher than the perks that you receive in return.

Credit card spending is protected

One benefit of spending on your credit card is that it comes with protection under Section 75 of the Consumer Credit Act.

Any purchase that you make between £100 and £30,000 is covered, and you could refund your money from the card provider if something goes wrong.

Even if you only pay for the deposit with the use of your credit card, the total amount paid will be covered under Section 75.

For example, if you paid a deposit of £100 using your credit card for your venue, and you pay off the balance of £2,500 using your savings, the total amount of £2,600 would be covered.

Get a personal loan

Getting a personal loan can be an expensive way to pay for your wedding. However, it could satisfy all your costs and allow you to pay it back in monthly instalments.

You could borrow up to £25,000 over one to seven years using a personal loan, with some available at interest rates below 3 percent.

The annual percentage rate (APR) is the interest that you need to pay on the total value of your loan. Which means that the lower your APR, the less interest you will pay on what you borrow.

You should only avail of a loan if you do not have enough savings to satisfy the costs, or you cannot get a 0% purchase credit card with a large enough balance.

Ask help from family and friends

If you are lucky to have friends and family that are willing to assist with the price of your wedding, it can ease the strain.

Normally, the family of the bride takes charge of the bill. However, nowadays it is usually down to you to cover most of the costs. (See also: Family or Friends, Who Should You Borrow From? )

Protect what you spend

Before you spend on anything, consider getting a wedding insurance policy.

This could cover you if something goes wrong and you are forced to cancel, like if your venue goes out of business or if one of your wedding party falls ill.

See: Do You Need Wedding Insurance?

Do You Need Wedding Insurance?

Planning for your wedding day is a lot of fun. However, it can be very expensive too. Having an insurance can give you a financial safety net if things go wrong, but do you really need one?

Why get a wedding insurance?

There are many unforeseen things that could happen that can cause your wedding day to be cancelled, reschedules, or rearranged.

For example, the venue of the reception could go out of business, or a member of your entourage or one of your close relatives could become sick and be not be able to attend the wedding.

Without insurance, you could lose all of the money that you have spent for your wedding. You might have some protection if you used your credit card for payments. However, this will not cover everything that a wedding insurance can.

Section 75 can protect payments that you make by credit card that is ranging between £100 and £30,000. However, it only covers certain scenarios including if your reception venue goes out of business.

You should also consider whether the peace of mind of making sure that you are protected if things went wrong is worth the cost of purchasing a policy.

What kind of cover do you require?

Wedding insurance policies extend fixed amounts of protection, so you need to work out how much your wedding will cost by making use of a budget tool and then looking for a policy that provides you enough cover.

For example, if the entire cost of your wedding is £20,000, look for a policy that grants at least the same amount of cover for rearrangement or cancellation.

The lower the limits of coverage offered, the cheaper the policy will cost you. Many insurers offer several various policies, and each one of these policies has different limits of coverage, for example:

CoverBasic PolicyMid-level PolicyPremium Policy
Wedding Rings£1,500£10,000£15,000
Supplier's Failure£2,000£15,000£50,000

How much does a wedding insurance cost?

You could pay anything from a range of £20 to £300 for a policy. It will depend on the insurer and the level of cover that you choose.

You pay for your wedding insurance with a single payment and policies start from when the cover is carried out and ends once your wedding ceremonies and/or activities are finished.

Many insurers let consumers take out an insurance policy two years before their wedding so that you can enjoy coverage well in advance of your wedding day.