Newlyweds forced to face financial reality
AA Personal Loans has highlighted many newlyweds’ failure to face financial facts when it comes to setting up home together.
According to a survey by the provider, 87% of couples plan to pay off their wedding immediately. However, half of those questioned admitted facing financial issues within the first 18 months of marriage, with 3.4 million saying it put pressure on their relationship.
Large purchases related to the home are often the main cause of this kind of strain. Those surveyed said domestic appliances such as washing machines and dishwashers were the most significant purchase, with 40% buying them in the first 18 months of marriage. Other costly items include home decorations (36%), holidays (21%) and buying a new home (31%).
Mark Huggins, head of AA Personal Loans, said: “The true cost of marriage is often underestimated by couples focussed on their wedding day and forgetting about the other financial demands the first year of marriage can bring. Many people who end up buying domestic appliances simply don’t have the cash and will take a high interest payment plan offered from the retailer. However, being ready and aware of extra pay outs, couples can be smarter with their money. For example, by researching a lower interest personal loan before rushing ahead on any payment plans that retailers may offer, can often make newlyweds a saving.”