Alliance & Leicester loans advised as an option for weddings

Alliance & Leicester has suggested that one of its personal loans could be a good option for financing a wedding, revealing that many couples are unaware of how much their big day is going to cost.

Overall, British people are expected to spend £23 billion on getting married this year, with the average cost of a wedding reaching £17,000 – an increase from £15,000 last year.

Furthermore, the company estimates that many people planning to get married are underestimating the cost of their wedding by 155 per cent, as they believe their wedding will cost around £6,650 on average.

Almost eight out of ten couples plan to pay for the event themselves, while 17 per cent will borrow money to finance their day.

Alliance & Leicester advises that couples planning to do so should consider their options carefully, as substantial savings can be made with various providers.

“Making the wrong decision on a loan means you could overpay on interest by £850. But if you make the wrong decision on the relationship it could cost you even more when you separate, an average of £13,500,” said Claire Alvey, personal loans manager for Alliance & Leicester.

The company states that a customer taking out a loan for £7,500 at a rate of 5.9 per cent would pay £1,154 in interest – a possible saving of over £850 compared to other providers.