Loan News Sainsbury’s Bank Weddings Can Lead To Bad Credit
11 July 2005
Sainsbury’s Bank says this year alone £467 million will be taken out in personal loans to pay for weddings.
With wedding costs rising, and couples increasingly seeking to create their dream day, many people are overstretching themselves and risking the possibility of bad credit.
Taking out excessive loans can easily lead to a situation where the borrower misses repayments and begins to stack up a bad credit rating.
Many, so-called “sub-prime” lenders are often willing to lend to people with bad credit at higher rates of interest, but additional loans, even to pay off existing debts often do little more perpetuate the cycle.
And, according to Sainsbury’s Bank, things are only likely to get worse with it predicting the cost of weddings are set to rise by around ten per cent a year.
The loans manager at Sainsbury’s Bank, Rachel Brereton, explained people should shop around when looking to borrow for a wedding.
“It is widely noted that the cost of an average wedding is around £17,000. A loan can therefore be a sensible way of spreading the cost.
“However,” she added, “it is important to shop around for the best loan deals available, especially when you consider the dramatic difference in rates currently on the market.”