An Engagement Ring Financing Plan: All You Need to Know
Buying an engagement ring may be your most emotional and costly purchase. Don’t let the cost of the ring overshadow its meaning.
As soon as you sit down and think about an engagement ring, you are bound to start thinking about the price. Whether you are resetting a diamond or purchasing a new one, the cost depends on your choices.
No matter how much advice you get from others or from online, there are no set guidelines. But in this guide, we will try to talk about the ways people can buy their chosen engagement rings without hassle.
Is It a Smart Idea to Finance an Engagement Ring?
Buying an engagement ring is usually a couple’s first large purchase. After that, they have to go for wedding jewelry. Decisions of this magnitude should not be made carelessly. A good strategy is to balance her expectations and your finances.
You may still need a little help along the way. In certain cases, borrowing money or taking a bank loan to buy a ring is a good decision. It implies that you shouldn’t have to wait till you have saved up enough money to ask your sweetheart to marry you.
If you are interested in finding out how to pay for your ring, keep reading to learn how to do it right.
Are You Familiar With the Simple Ways to Pay for an Engagement Ring?
1: Decide on a Spending Limit
There are several aspects to consider while going over the collection of the best engagement rings. And the total budget is one of the most important ones. If the proposal is a surprise or you and your partner are picking a ring together, set a budget.
Do this early, since it’s a smart idea to have a price range in mind before you meet with a jeweler. You can also ask about the wedding sets you want to buy for your lady. Having a defined budget allows specialists to provide solutions within your limits.
2: Spend Less on Things That Aren’t Needed
You will need to cut down on non-essential expenditures to pay off your debt. It is possible to use the additional cash to pay off the ring. Cutbacks on food, happy hours, and other indulgences may be necessary.
Look over your budget with your partner so that you can come up with a strategy jointly. Make sure to save money in advance to pay off your wedding day diamonds and invest it in the future. You will never regret the money you saved.
3: Get a Fresh Credit Card With Zero Apr
A 0% APR promotional term of 12 to 18 months is common on many credit cards. For up to 18 months, you won’t have to pay interest on any purchases you make.
However, ensure you have a payment plan in place before the offer time finishes. Otherwise, any outstanding debt will be subject to a hefty interest rate. Even if you have the money to pay for the ring altogether, it may be a good idea to do this.
If you spend a certain amount of money on a reward card, you may get a bonus. As an added plus, purchasing a ring will make it easy to satisfy that criterion. For your honeymoon, you will be able to spend that money or travel points.
Promotions of this kind are normally reserved for those with excellent financial standing. You will also be constrained by the credit limit you have been provided.
4: Shop Online to Get the Best Deals
Buying an engagement ring from a trustworthy online jeweler might save you up to 50% off the retail price. You may save a lot of money if you can find a reputable online diamond jewelry shop.
When you buy from a reputable online store, you can be sure you are getting high-quality stuff since the company cares about its reputation.
5: Seek a Jeweler That Can Finance Your Ring at No Interest
For an engagement ring loan, aim for 0% interest. Jewelers with in-house financing may provide 0% financing. You may be required to put down a certain amount of money on some, or even a down payment in cash.
To realize that the zero percent rate may only be in place at the beginning of the year is essential. Take a year as an example. And do not sign any documents without reading the terms and conditions.
6: Purchase Now, Pay Later Schemes
“Buy Now, Pay Later” payment systems are becoming more popular among jewelers. The service divides your credit card charge into three equal installments. If you do not want to lose the full money all at once, this is a decent option.
Repayment terms are flexible, and you may even be eligible for a 0% APR. Your monthly payment and maximum interest expenses are upfront.
These solutions may be useful for quick, on-the-spot funding. It has less of an effect on your credit than, say, applying for a new credit card or borrowing money. The practice will help you purchase your future small diamond studs as well.
7: There’s Nothing Wrong With Cheap Engagement Rings!
A prevalent misconception is that an engagement ring must be pricey to be meaningful. When someone proposes to someone with a cheap diamond ring, they are seen as a bit of an outcast.
Many individuals have this concept ingrained in them unconsciously. There’s no need for an engagement ring to break the bank, we think. What occurs in your marriage has nothing to do with the price of the ring you buy online, look-alike, or pricey.
A common misconception is that inexpensive diamond rings are unattractive. In essence, the look and attractiveness of an engagement ring are unaffected by its price.
8: The Appropriate Amount to Invest in an Engagement Ring
It could be helpful to know that one-third of Americans spend between $1,000 and $3,000 on an engagement ring, while 10% spend less than $1,000. As a result, costs might differ greatly.
A few guys in Europe acquire US-level engagement rings for at least 5,000 dollars for a proposal. In general, European men spend less than $1,000 US dollars on a wedding band for their fiancée. By purchasing an engagement ring for roughly $1,000, you may show her how much you care.
Don’t overspend on your engagement ring when you are shopping. Make sure you read the diamond price chart and can afford the ring you want. Use only cash if you can. Just before you tie the knot, do you want to pile on the debt?
Logically, a 0% APR offering would be ideal in this scenario. You may receive a credit card with 0% APR and a cash sign-up bonus for a big purchase.
Before the reduced APR ends, do your utmost to pay off the ring in full. Get a personal loan if you can’t secure 0% financing. An unsecured personal loan can be used to pay off an engagement ring over three to five years.