• Seven out of ten couples (70%) now pay for their own weddings
• A quarter of couples take out a personal loan to pay for their big day
• 17% of people are worried about entering married life in debt

New research from Alliance & Leicester reveals that the rising cost of weddings1 is putting more pressure on couples to find alternative ways of financing their big day. Gone are the days when it was left up to the bride’s family to foot the bill – nowadays, seven out of ten weddings (70%) are paid for by the couples themselves.

With the estimated cost of a wedding now averaging over £15,0002 it is hardly surprising that one in five couples (20%) admit to needing to borrow money to pay for the expenses associated with getting married. However, 17% are worried about entering married life in debt caused by borrowing to fund their big day, with women worrying more (23%) compared to men (11%).

In fact, 38% of couples questioned have, or will have to, cut back on some of their dream wedding plans due to money worries, whilst 61% said that they wouldn’t let money get in the way of their plans. Furthermore, wedding finance worries prove a strain on many couple’s relationships with 15% arguing more about money. A third (33%) have found that they have had to cut back on their general spending and even had to change their lifestyle, whilst 40% have had to go without holidays, weekends away and nights out to help them save for the big day.

The survey carried out by an independent research agency, reveals that of those couples that borrow to pay for their wedding (20%), over half (54%) rely on friends and family and 16% on a store or credit card.

However, a quarter of couples (25%) have or intend to use, a personal loan to cover the costs of the wedding and of those, 80% borrowed, or will borrow, from one of the Big Four banks (ie Barclays, HSBC, Lloyds TSB and RBS NatWest).

With dozens of different loans on offer, it is important that consumers shop around to get the best deals. Unfortunately, many people tend to make their own banks their first port of call, and this could end up costing hundreds of pounds more. For example, a loan of £7,500 with HSBC, paying a typical rate of 11.9% APR will cost £9,851.40 over a five year term, compared to just £8,654.40 with the same loan from Alliance & Leicester at 5.9% APR – a saving of £1,197.00

Andy Bayes, Head of Personal Loans, Alliance & Leicester, said: “With all the effort and energy that goes into organising a wedding, it would be a shame not to do the same when it comes to choosing the most competitive finance package to pay for it. Shopping around to get a good deal could ultimately impact your overall wedding plans - and whether you can afford a honeymoon in Skegness or the Seychelles!

“Getting married is an expensive and busy time. By not making the time to look for a competitive loan, couples risk ending up with a loan from one of the bigger High Street banks that can cost hundreds of pounds in additional interest – money that most newly-wed couples can ill afford to lose.”

For couples considering applying for a loan or switching providers, Alliance & Leicester's website, www.alliance-leicester.co.uk, provides access to many useful tools to help and guide them with their financial decisions. There is a handy calculator that enables future newly-weds to work out how much they can afford to borrow, decide over what period they wish to spread their repayments.