Use savings or credit???

tb1105

Other half and I have £9k in savings for our wedding this summer. We would like to move out within the next year and plan to have an extra £12k saved by July 2010.

Would you:

a) use the £9k savings to pay for the wedding and the £12k towards a deposit and stay put (with his family) for longer

OR

b) put the wedding on credit card/loan and pay off monthly and keep the £9k in the house deposit pot???

We are keen to move out a.s.a.p!xx

poppysarah

Do the wedding on the cheap and have 21k deposit.

RetroBob

Yeah you'll probably need at least £15K deposit unless buying a shed.

Zelie

Why would you want to put the wedding onto a credit card? Are you expecting for it to break and to get your money back?

Honestly, don't spend tons on one day. I'm not one of those that say have no celebration at all or be up at 5am making sandwiches and homemade lemonade but do think a little about which part of your marriage you want to spend the money on. One day having a party or decades in your home with your family?

tb1105

how much I spend on my wedding isn't up for discussion, am asking whether we are best saving the money or spending it.

We are getting married abroad with close family, the way we want it.

clairbear_3

savings will earn little
credit would cost more so use savings
hope u have a great day
CB

PasturesNew

My friend is getting married in a couple of months, this morning we were discussing the cost and she said they'd get a loan to top up the cost of the wedding ... we then had a discussion about frugality and saving ... 2 hours later she's just announced her OH has been laid off - and is in construction.

Self-employed, no kids, she's earning what will be deemed enough to keep them and I doubt there'll be any benefits for him.

Don't borrow! You don't know what will happen.

lostinrates

I'd save. Actually, no, we did save! We did our wedding very cheaply, I've not heard of any one get married for less than us,lol, but it was a very romantic and special day, extremely joyful and with a sort of rock and roll devil may care edge. And we still have lots of savings.

Zelie

tb1105 wrote: »

how much I spend on my wedding isn't up for discussion, am asking whether we are best saving the money or spending it.

We are getting married abroad with close family, the way we want it.

The thing is you ended your post saying you wanted to move out asap. If you have an expensive wedding then you're probably going to have to accept that you can't move out as quickly as if you had a moderate wedding and a bigger deposit.

The actual maths of this are simple. If you put the wedding on a credit card then you'll pay more than if you use your savings upfront. This will take longer to pay and may also have an impact on your ability to get a mortgage and move out. If you use your savings for the wedding then it will be cheaper and allow you to save more per month because you won't have the credit card repayments. But of couse you won't have a big deposit and this could impact your ability to get a mortgage and move out.

I'm not criticising your choice over what to spend your money on. Just pointing out that there is a middle way which might be more beneficial to you than the two ideas you've already thought about.

pinkshoes

Credit is practically a swear word!!


(so use your savings)