The impending threat of insolvency that is omnipresent over those in debt across the UK hasn’t stopped many from dreaming of a white wedding. Many will pay for their wedding on credit but may not be aware of the repercussions.
Getting married is not only a big emotional commitment; it is also a substantial financial commitment as well. Insolvency is set to reach record levels in 2008 and many will be forced to postpone their wedding plans until their finances are back on track. Others, however, will make the particularly risky manoeuvre of paying for the extravagancies of their wedding on credit card. This is far from an astute financial move for those in debt and debt management experts will point to the heightened risk of insolvency that would result from such a move.
Insolvency – Risky Business
Weddings are notoriously expensive affairs and by adding this cost to already over-extended finances may just spell financial disaster. Insolvency or bankruptcy are becoming increasingly likely for those experiencing debt problems and by adding the cost of a wedding into the equation, couples are walking a financial tightrope with a pit of insolvency loitering beneath them. A report carried out by Sainsbury's Bank discovered that around 125,000 couples will finance a wedding on credit this year and in the current economic slowdown, this may well be a particularly precarious move.
Insolvency – Counting the cost of a wedding
With insolvency set to reach record levels in 2008, it may seem like a bad time to plan for the expensive outlay of a wedding and this is something that is borne out by the research conducted by Sainsbury's bank. They have estimated that in excess of £1 billion in debt will be accrued to finance this years weddings and the average size of the debt accrued will be £9,000. With debt management professionals urging us to tighten our belts and insolvency seemingly lurking around every corner, a wedding may be the straw that breaks the financial camel's back. But, as they say, ‘love is blind'. And, it would seem, financially naïve.
Speak to Varden Nuttall About Insolvency
Varden Nuttall has been established for over 15 years and is dedicated to helping people in financial difficulty find a debt management solution through an Individual Voluntary Arrangement (IVA). Employing 90 people, including trained and skilled IVA administrators, we are one of the largest IVA companies in the UK and handle over 3% of all IVA applications. To find out more about the company, or to make an appointment to talk about putting an IVA in place, call us today on 0870 977 8100 or fill in our online enquiry form.