Tuesday, May 3, 2011
Category:
Consolidation
According to R3, it takes an average period of 33 months for newlyweds to pay off their wedding bills. The insolvency body’s new research also uncovered that young couples are most likely to spend the greatest sum of money on their big day. In fact, it was found that 20 percent of respondents between 18 and 24 years of age spent in excess of £10,000 on their wedding. In contrast, just 7 percent of those between 45 and 54 years of age reportedly spent over £10,000, and no newly wedded respondents over the age of 65 spent in excess of £2,500 on their big day.
It has been revealed that many couples borrow money from family members or take out additional credit cards or loans to pay for their wedding. R3’s research revealed that 36 percent of respondents had borrowed money from family and friends to meet wedding costs, while this was the case for 45 percent of 18 to 24 year olds.
In terms of the amount of money borrowed, findings have shown that the average sum stands at £5,000. However, 17 percent of respondents who took out a loan to finance their wedding had reportedly borrowed more than £10,000. R3 have revealed that one couple surveyed admitted to taking out a loan ‘with a policy that would run the length of their mortgage’. The couple in question reportedly stated that this was the only way that they would be able to afford the repayments, but they were ‘happy’ with their decision as they wanted the ‘best’ day.
Frances Coulson said: "At the moment consumers are tightening their purse strings, but it seems that weddings are the one event where people don't rein in their spending. As we've seen with the atmosphere surrounding the royal wedding, the British love wedding celebrations, it seems regardless of the costs. William and Kate have left nothing out of their ceremony, with special details and arrangements and so do other couples up and down the country. Many people say they want the best day money can buy, but unfortunately most don't have the money and can't afford it.
"The length of time it will take for many couples to pay off their wedding bills is alarming as it means these newly-weds enter married life saddled with large debt that last longer than the wedding cake - leaving them unable to plan for their future. Regrettably, many couples feel pressured by family and society into spending more on their wedding than they can easily afford. It is important to remember that your wedding day should be about making a life-long commitment to your partner, not creditors."
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Homeowners who may have turned to credit cards or unsecured loans to finance their wedding could consider taking out a secured loan to consolidate any outstanding debts. One of many finance options available, a secured loan for
consolidation could allow borrowers to replace multiple monthly repayments with a single monthly repayment. What’s more, this new monthly repayment could even be lower than the sum of current outgoings – thereby leaving borrowers with more money each month. However, if opting for a secured loan to consolidate debt, it should be remembered that consolidating your debt may increase the amount you pay back overall and extend the repayment periods of your debts.
