Let me ask you a question. How do you pay for an engagement ring that you can ask the love of your life to marry you with if you can’t afford to get yourself into debt?
This is going to be one of the most expensive and important purchases that you will ever make, other than buying a house or car. However, you should not be tempted to dig into your savings that you’ve worked so hard for in order to afford one.
Cash is king when it comes to large purchases and this is going to be the best option for you. But what if you don’t have any cash on hand? Does this mean you have to put off your engagement? Absolutely not! There are several options that can get that ring in your pocket.
You can find different prices no matter where you shop, whether in a physical location or online. Online jewelry shopping has actually become quite popular over the years. Most jewelers with their own brand offer a credit card. However, if you don’t pay the card off before the 9% interest period ends, you may suffer some serious implications.
What’s The Cost?
It’s conversed amongst men that a ring under $2000 is an acceptable average for an engagement ring, but women thin that a good average is between $2500-$3000. But wait! Online sources say that a ring should be upwards of $6,000.
Many would rather take their entire life savings and be frugal for the rest of their lives to buy a ring, but for some, it’s not possible. If you are considering financing a ring, you need to understand the terms and conditions clearly and know what you would be getting yourself into.
You can go with a private loan and feel good about the position knowing they offer low-interest rates for the first two years, but this will go up. Most of these loans are only 3-5 years. When you choose a lender, consider their repayment terms and compare their rates with others.
What About A Payment Plan?
You can walk into almost any large jewelry chain and see that they offer ring financing. They call this a payment plan, but it's actually a loan. What a payment plan you can pay off the amount in smaller payments before you take possession of the ring. A loan, however, will give you the money upfront, which you will then pay later on.
Other Financing Options
One other financing option is deferred financing. This is offered when you make a high-volume purchase. These are used when the amount of the loan isn’t enough to be a large loan, like one would be for a car, but may be too big for a credit card. If you pay off the loan in its entirety, you won’t own any interest. If you don’t pay it off, the interest will continue to rise, creating a concerning pattern of debt.