Planning - Budget Section

Is It OK to Get New Credit Cards to Cover Wedding Costs?

As I’ve been planning my wedding, so many little things are adding up. Is it okay to max out our credit cards or take out a new one where you don’t pay interest for a few months?

You probably won’t be surprised to learn that most money experts will tell you to set up a realistic, detailed wedding budget and stick to it. Ideally this spending plan would not involve going into debt to pull off your big day.

Of course, once you start shopping for the perfect dress or begin reviewing menus for the reception, temptations abound. Consider that the typical wedding these days costs around £15,000. Obviously your wedding could cost considerably more or less than that, depending on where you live and the kind of wedding you want. Still, “I’ve seen so many people go overboard and end up in credit-card hell.

Interest Rates

What to do? If you’re considering using a credit card you already have or obtaining a new one, do so carefully. Obviously you could use one of your existing cards if the terms are favorable. If not, and you’re shopping for a new card, find out about the interest rate. Then add the rate to your total wedding cost.

For instance, MBNA is currently offering a card called MBNA Wedding Plan. If you were to borrow £15,000 on the card (with an APR of 17.99%) and pay it back in two years, you would end up adding another £3,000 to the cost of your wedding in interest alone! So if you’re selecting a new card, choose one with a low interest rate and be sure to make payments on time. If you’re late even once, you’ll be charged a hefty late fee (£15 to £35) and could find that your interest has been jacked up. If you want to find a card that lets you delay payments for a few months, check store credit cards—some have this feature.

Paying It Off

Finally, you need to come up with a plan for paying off the card within a reasonable period of time. If the card offers a grace period with no interest, be sure to pay the balance within that time frame. Otherwise, “make a plan to get those expenses paid off in under a year,” advises Gianola. “If you fail to do that, you may have to postpone making important financial moves, like buying a house, because you’re still paying for the wedding.” Good planning should help you avoid that scenario.