There’s been several events lately that have made us all question our wedding spending. Whether it’s the credit crunch making us tighten our belts or the Wrapit fiasco not to mention stories of brides left without dresses after wedding dress shop goes under, it’s made us all think one thing: how can we protect our wedding cash?
Thinking of paying with cash? Don’t! Some suppliers will gladly take cash and even offer discounts so long as you pay cash, but if they renege on their agreement by not turing up, not supplying goods or by going bankrupt, you will have absolutely no chance of getting your money back, with or without a receipt. The same goes for cheques.
Some cards offer more protection than others. You should check the terms of your lender before paying by debit card even if you only prefer to pay out what you already have. Some debit cards offer no more protection than paying by cash or cheque i.e. none.
And that leads us to credit cards. Again check the terms of your lender but generally, credit cards offer more protection than any other form of payment. Even if you can’t reclaim costs from your supplier, you should be able to claim the money back via your card company. Consumer guide Which? says, “you’re entitled to compensation from the credit card provider on anything you’ve bought for between £100 and £30,000… If your venue went bust, for example, you could claim back any money you had paid it from your credit card provider.”
Ask your guests to pay for gifts on their credit card too so that if there are any problems, they’ll be able to claim the money back though they may have to have a minimum spend of £100.
Your home insurance may already cover items such as wedding presents, dresses and rings depending on the terms of your policy. You may need to pay an extra premium for additional coverage.
A wedding insurance policy may be a good idea but don’t forget to look closely at the small print. Are you covered if your supplier goes bust? Is bad weather covered? And remember, getting cold feet is very rarely, if ever, covered. Is there an excess payable in the event of a claim? Wedding insurance tends to have a flat fee, with different tiers of cover, so shop around and purchase as soon as you start planning. Moneymagpie says, “it may be better to spend a little extra on a higher cover level so that if anything unfortunate happens the insurance policy actually makes a difference when it comes to paying for any damage.”
Related: More wedding finance
Note: Please consult a financial advisor or make your own checks with your lender or insurance policy prior to spending.