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Love and Money

Love and Money

Category: Loans

Updated: 31/10/2008
First Published: 09/02/2006

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Thousands of people will receive a proposal this Valentine’s Day. But whilst dreaming of the perfect wedding and life together, couples should bear in mind that the average wedding now costs in the region of £15,000 to £20,000. Unless this cash is ready at hand or can be saved, couples need to start planning their borrowing - however unromantic this may seem.

Moneyfacts researches virtually all personal loans on the market. Looking at loans of £15,000 over 5 years, monthly repayments without insurance range from around £190 to £215 per month. Although this may not seem like a vast difference per month, over the 5-year term this difference amounts to £1,500. Loans with payments insurance vary from around £330 to over £425 per month. This is almost £100 difference in repayments per month - amounting to £5,700 over 5 years.

A joint bank account may also be on the cards. Moneyfacts researches virtually all current accounts and overdrafts on the market. Some current accounts pay a paltry 0.1% interest. However, best buy charts on show that rates of almost 5% can be earned on these accounts.

Moneyfacts research of overdrafts shows that some providers are charging EARs (Effective Annual Rates) on authorised overdrafts of over 20% and for unauthorised overdrafts over 30%. Again, best buy charts on show that better deals are available with rates on authorised overdrafts as low as 0% (introductory) and unauthorised at 5.9%.

Emma Butler, Editor comments: “These figures show the importance of shopping around for a good deal. Once the knot is tied, there are other financial matters that may need to be addressed - the mortgage, the savings account. Again, can help.”

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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