Things to know before Financing a Diamond Ring
Credit and financing procedures is an uncomfortable consideration for most people. If you fall within this group, don’t despair – you are not out of options yet, and that ring can still be yours! Financing of engagement rings is becoming more and more popular, and there are many ways to do it – one example of this is a personal loan.
Good or bad idea?
Once you propose, you are in for a series of very expensive things to spend money on. Picture the larger car to accommodate kids in the future, a house… not to mention the wedding itself! All these things are solid reasons to take care of your finances, and to be frugal as much as you can.
Why NOT to finance your ring
Money does not equal love. If the amount of money spent on the ring is too high and causes friction, don’t buy it!
Debt is an unstable platform upon which to build a marriage.
In an ideal word, you and your intended will have similar view about money by the time you get engaged, or at least be in alignment.
I need more options!
A credit card is one option that could help you to finance your ring, while simultaneously helping you to get rewards, if you choose wisely and get a card that is linked to a rewards system. If you get a store-specific card that offers a cashback bonus, you can plough that money straight back into covering the cost of the ring!
In the case of a personal loan, you will be liable to pay back the loan amount and the interest by the end of the loan term. If you don’t have much of a credit rating, you are like to receive a quote with high interest rates. However, because loan schedules are calculated upfront, you will know exactly how much you’re in for by the end of the term.
Turning to family
If your family are in a financial position to assist, you will be able to call on them for help. People who take loans from family do so to lower or avoid their commitment to interest in the case of a personal loan. Record all payments and repayments to keep a paper trail and avoid conflict!
Second guessing the decision?
Not the marriage, of course, but the financing. Starting your marriage cocooned in debt is unstable footing on which to embark on a new life together.
Do your homework before taking out a loan if you feel that you really need to finance the ring. Don’t pay debt by creating debt, and keep your credit rating as high as possible, Spend the time and make the effort to find a solution that is best for your needs. Keep your debt low, and your credit rating high, and go with the solution that will cause the least upheaval to your lifestyle.