Everyone knows that wedding rings aren’t cheap. The saying is that you should spend two months’ salary on a ring, but this is mostly marketing hearsay. Still, you don’t want the ring you buy for your partner to be cheap, you want it to be beautiful. And beautiful rings cost money. Wedding bands can be one of the most expensive purchases of your life, but you don’t have to let it drown you in debt. While paying for a ring in cash is always preferable, some people simply can’t afford to pay for it all at once. If you are thinking about financing a ring, there are a few things you should know.
What You Should Know
While it goes without saying, the longer you take to pay for the ring the more interest you will pay. This makes it more expensive in the long run. You always want to pay for anything you finance immediately. Delaying will only hurt you. This is why you should pay for as much of the ring as you can upfront. This will not only help you pay off the interest, it will help you avoid penalties. Depending on how much you want to spend on a ring, paying for it as soon as possible will take out the unnecessary fees and charges.
How Much Should I Spend?
The average wedding ring costs $2,016 according to TD Bank, who did a study on the costs of engagement rings. As it turns out, 17 percent of people buying a ring spend between $2,500 and $5,000. Those who spend $10,000 or more were just seven percent of the people surveyed. Rings don’t even stop there, you can spend however much you want to spend. But considering you are thinking about financing a ring, you probably don’t want to spend that much. The interest will be huge.
One of the ways that you can finance jewelry is to do so with a store. Some jewelry stores will help you finance a ring because they want to make a sale. Your options vary but you should always pay attention to how long the term is and that the APR is low. Make sure that you take advantage of any promotional deals. Small interest rates will help you save a lot of money should you pay it back in good time. You should also check the rate after the end of the promotional deal. If you can afford the payment, make sure that the APR is within your budget if you have to delay payment. APR should be as low as you can get.
Another way to finance a ring is to take out a personal loan. It depends on how much the store is asking, taking out a personal loan can is an option that can help you get the ring your partner deserves. But be careful. Most of the time a personal loan is a last resort, but that is because of the high-interest rate. You want to secure 0 percent APR according to the website MoneyPug, which is known for being a platform to find payday loans. While 0 percent may not be possible, keeping it under 10 percent is a pretty good deal.
This is compared to putting the ring on a credit card, which is usually around 16 percent. Your third option, using credit to buy a ring can be helpful to you if you make sure your interest rate is as low as possible. You should make sure your credit score is high before you put this kind of purchase on your card, but if you have good credit and make more than the minimum payment, you will be able to buy the ring of your partner’s dreams without compromise. Just make sure to pay it off as soon as you can.
When it is time to look for an engagement ring, do your best to weigh your options. Get quotes for the percentage of interest. Doing your best to find a promotional deal will help you as well. If you are looking to buy a ring and don’t have the cash on hand, don’t pull the trigger immediately. Find your best option that will enable you to get the nicest ring possible without overpaying for it.