The Fixer: Paying for a wedding

The Fixer logo%VIRTUAL-SkimlinksPromo%Have you been left out of pocket due to poor service or sharp practice? Do you have a money problem that won't go away?

It can seem impossible to find a solution to a complicated or longstanding financial issue on your own. But never fear! The AOL Money Fixer is here to help.

Dear Fixer,
Despite having some savings, I need to borrow some extra money to pay for my wedding in August.

A friend has recommended taking out a 0% credit card, but I am a bit worried about getting carried away and blowing the budget if I do this.

Is a 0% credit card the best way to borrow money to fund a wedding? And do you have any other financial advice for me and my bride-to-be?

Thanks in advance for your help.

G Scroggs, Gloucester

Dear Mr Scroggs,

A wedding is a joyful occasion. However, as all recently married couples know, it is also a very expensive one.

Most weddings nowadays cost in excess of £15,000, so it is hardly surprising that you need to borrow some money to cover the cost of your nuptials.

As your friend says, one option is to use a 0% credit card to do this. Cards offering 0% on purchases include the market-leading Tesco Clubcard Credit Card, which gives you 16 months at 0% before its standard interest rate of 16.9% kicks in.

Used correctly, a card of this kind can enable you to avoid interest on your borrowing altogether. This method of borrowing can prove dangerous if you are not very disciplined, though.

Not only do you have to remember when the 0% deal comes to an end, you also need to stop yourself spending more after the wedding, while the fact that there are no fixed monthly payments means that you could end up paying interest at 16.9% if you fail to clear your balance within 16 months.

A better option may therefore be a fixed-rate loan. The Sainsbury's Bank Shopper Standard Loan has a headline rate of just 5% on amounts of between £7,500 and £15,000 over a period of one to three years.

The cost of borrowing £10,000 over three years would therefore be just £772, based on 36 fixed monthly payments of £299.21 (although you will need a Nectar card to qualify).

Other options include the Clydesdale Bank Personal Loan, which is available on the same amount over between one and five years, with a rate of 5.1%.

Once you have started spending money on dresses, rings and venues, I would also advise taking out a wedding insurance policy to protect you in case anything goes wrong.

The Fixer

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