Consumers plan to use personal loans to finance weddings

Tuesday, March 04, 2008

Consumers plan to use personal loans to finance weddings

A new report has estimated that nearly 125,000 people will need a personal loan to pay for a wedding in 2008.

Sainsbury's Finance said that it believes that 123,500 personal loans worth an estimated £1.16 billion will be needed to cover the costs of peoples' weddings.

It added that the average amount borrowed via a loan to cover a wedding was £9,363.

A recent study by Alliance & Leicester found that many people were drastically underestimating the true cost of a wedding.

The lender found that people typically think their wedding will cost them £15,927, but that the actual average cost of the event in the UK is 22 per cent higher, at £19,400.

Richard Al-Dabbagh, head of personal loans at Alliance & Leicester, commented: "Getting the finances right is probably just as important as the choice of reception venue, entertainment or even the rings.

"That is why it is essential that you budget well, and if you are borrowing money for part of it, a low-rate personal loan is a sensible way to finance your special day."

Source: http://www.moneyhighstreet.com/news/