Here’s How Engagement Ring Financing Works
Although there is no denying the validity and importance of a wedding ring, it is without a doubt one of the most expensive things you’ll ever buy. Don’t get caught up in the financial implications, and remember its true meaning as a symbol of your love. If you are still keen to spend a large amount on a ring, the fact remains that you do have options, and this is a good thing.
Many people vehemently believe that you should not turn to finance for an engagement ring. Others think it doesn’t matter. The bottom line is – no matter your persuasion, the goal is common: to get a suitable engagement ring for your beloved.
As a traditionalist, I believe in saving up for an engagement ring and buying it cash when you can afford it. If you think like I do, you’ll agree that your life together with your spouse-to-be is more important than starting this off while up to your eyeballs in debt.
This being said, a new thing has started becoming fashionable, and that is jewellers (and large chain ones!) are offering 0% interest financing for engagement and wedding rings. As much as it’s a good solution for someone who can’t afford the ring they would like, it seems a bit disingenuous to enter major debt at a time when you should be aiming to stabilise our finances.
How much should you start with?
A budget is a personal thing, and when you choose a ring, the final choice will be informed by the budget. If the proposal is supposed to be a secret, the proposer should budget individually, or, if the decision is shared, similarly, a shared budget should follow.
As long as the amount falls within a range you can afford, it is very advisable to go in with an idea of what you can spend without causing trouble for yourself later on. It also helps to guide jewellers in showing you the best options for your money.
Should I take out a loan?
A great engagement ring financing offer can free up your time and money, as you can save or invest money that would otherwise have gone towards paying interest. Because engagement rings are a high-value purchase, it is wise to give yourself enough time to save before buying, even if you can manage just a part of the overall price unfinanced. It is said that three to six months’ worth of savings is the guideline for what is acceptable. Giving yourself time to save will help you to relax about the overall topic, and to feel less pressure when it comes to making the actual and very important purchase.
Go for it
If your credit condition is stable enough to result in you getting a 0% for 12 months solution, there is no fault in taking it and killing the debt over 12 months. This is of course also the trick: if you fail to do it within 12 months, the deal falls flat, and you will have to pay massive interest.