What are the best ways to pay for your wedding?

It's no secret that everyone wants their wedding day to be memorable. Unfortunately, often that can mean that weddings are expensive affairs and it’s easy to spend more than you intended.  

There are many ways to finance a wedding, which is why you need to have a clear plan on how much your wedding might cost and how you can pay for it.

Use your savings

If you've got a tidy sum set aside, using this is usually the cheapest option because you won't be charged interest for borrowing.

But before you decide to use your savings, ask yourself these questions:

• Are you saving for a house deposit? If you're saving for a new home, consider holding onto your money because you can't use a loan or credit card to pay for a deposit.

• What savings rate are you getting? If you can borrow interest-free, you might be better off leaving your savings to earn some interest.

If you're planning your wedding day a few years in advance, you might have time to set a budget and save enough to pay for it without borrowing a penny.

If you don't have any money saved up, there are other ways you can pay for your wedding.

Use a credit card

A credit card can be an affordable way to borrow the money you need to pay for your wedding if you're sensible.

Spread the cost and pay no interest

0% purchase credit cards let you spend without paying interest for a set number of months.

For example, a card with a 22-month interest-free period means you will not be charged any interest on anything you buy during that time as long as you meet the terms of the card.

This means you can spread the cost over the interest-free term. If you pay off the balance before the term is over, you can borrow interest-free.

However, you may only be accepted for this type of card if you have a good credit record, and the credit limit you're offered may not cover all your wedding costs.

Here's how to use a credit card to pay interest-free

Earn rewards

If you've managed to save the money, you need to pay for your wedding, buying everything with a rewards credit card could be a great way to gain some extra perks which you could use towards the cost of your wedding.

As long as you clear the balance in full each month with your savings, you could earn cashback, Airmiles or other rewards without paying any interest.

However, if you can't pay off the balance, the interest you get charged could cost you more than the perks you get in return.

Here's how reward credit cards work

Credit card spending is protected

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

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

Even if you just pay for the deposit using your credit card and the rest with cash, the credit card provider will cover the total amount under Section 75.

For example, if you paid a deposit of £100 on your credit card for your venue, and you pay off the balance of £2,500 with your savings, the credit card provider would cover the total of £2,600.

Here's how Section 75 can protect your credit card spending

Get a personal loan

A personal loan can be an expensive way to pay for your wedding, but it could cover all your costs and let you pay it back in monthly instalments. It may also be cheaper than a credit card unless you’re able to get an interest-free card and pay it off on time.

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

The annual percentage rate (APR) is the interest you pay on the total value of your loan. So, the lower your APR, the less interest you'll pay on what you borrow.

You should only get a loan if you don't have enough savings to cover the costs, or you can't get a 0% purchase credit card with a large enough balance.

Should you get a credit card or loan?

Get help from friends and family

If you're lucky enough to have family and friends willing to help with the cost of your wedding, it can ease the strain.

Traditionally, the bride's family foots the bill, but it's usually down to you to cover most of the costs nowadays. Here's more about lending money to friends and family.

Protect what you spend

Before you spend anything, think about getting a wedding insurance policy.

Insurance could cover you if something goes wrong and you have to cancel, like your venue goes out of business or one of the wedding party is ill. However, it won’t cover every scenario, so check the small print before buying. 

Here's how wedding insurance works and what it covers