Credit Card Or Loan?

ward.russell

Hi,

I am getting married next year, and to pay for this we are having to borrow around 10 grand. Does anyone have any ideas about which is the cheapest way to borrow money, I.E a 15 month interest free credit card, or a personel loan? Any thoughts would be appreciated!

Cheers

Russell

nomoneytoday

The cheapest will depend on the APR and the time of the loan, rather than whether it's a piece of plastic or a loan.

Either way - £10k over 15 months is nearly £700 a month to budget for...

cm233lh

If you're thinking of Barclaycard's 0% over 15 months, you'll only get 5K off them. And for any so-called 0% deal you'll normally pay a 3% charge, so it's not 0% APR.

If you're paying it off in around a year then you should be able to find a good credit card deal. If you're planning to take longer, then a personal loan might be a better deal, or a "life of balance" deal on a credit card. Often you'll find an overdraft is the cheapest way to borrow, or indeed a flexible or offset mortgage.

But can I just ask one thing? Why are you spending £10k more than you own on your wedding? Surely a big unsecured loan is not the best footing for a new life together. If you're not stinking rich then why try to pretend you are? Intimate home-spun weddings are far better celebrations of a marriage than fancy attempts to emulate the rich and famous. Tell me I'm out of order if you want - it's your wedding day and your finances.