Tuesday, April 19, 2011
Category:
Consolidation
With the Royal Wedding just around the corner, many engaged couples will currently be planning their own big day, which could potentially cost them tens of thousands of pounds. Therefore, moneysupermarket.com has been looking at how couples can ‘generate some extra bang for their buck by paying for their special day with the right credit card’.
The comparison site has pointed out that ‘reward cards offer a huge range of financial benefits for spending’ – for example, couples may appreciate products that offer air miles to help with honeymoon costs.
Head of banking at moneysupermarket.com, Kevin Mountford, commented: "While the majority of the population will be rolling out the bunting for the royal wedding, those couples planning their own big day will no doubt be shuddering at the thought of shelling out thousands of pounds in wedding costs. Budgeting brides should be looking for ways to offset these costs and a little research can uncover some serious savings.
"For those funding the cost of their wedding gradually, a product that offers rewards such as air miles, cash back or reward points is a great way to generate some extra value from their spending. However this approach will only work for those able to pay off the balance each month as any interest charged on the card will always negate the value of the rewards, even on the most generous schemes."
According to moneysupermarket.com, for those who are looking to spread out the cost of their wedding, ‘cards that offer interest free purchases might also be a good option’. For instance, a couple could reportedly save themselves £3,922.01 in interest payments over 15 months if they were to spend £20,000 on a zero percent purchase card as opposed to a credit card at an average rate of 18.32 per cent.
Kevin Mountford added: "An interest free product is a great way to spread the cost of large purchases but consumers must be extremely disciplined about payments and realistically plan their budget for repaying the debts they owe, before the promotional period expires. Missing a payment or paying late can mean forfeiting the interest free benefits of the card and land people with a hefty bill, so setting up a direct debit to avoid missing the minimum repayment is crucial.
"Ultimately, getting married can be a hugely expensive business, but with some forward planning and the right products in their wallets, couples can ease the pressure of funding the event or even earn themselves some money towards honeymoon flights in the process."
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Recently married homeowners who may have accumulated several credit cards during the run up to their big day could consider tying these debts up into one manageable monthly repayment with a secured loan. One of many finance options available, a secured loan for
consolidation could leave borrowers with lower monthly outgoings – and therefore more money at their disposal. 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.
