Financing the ring....

[Murr4168]

My boyfriend is starting to freak out a little about how much diamonds actually cost

and is wondering the best way to finance the ring(s). I guess he was naive and hasn''t attempted to actually save any money??? We were planning to purchase online but there doesn''t seem to be any types of financing available like there would be in a store.

Did anyone here finance their ring? Sorry if this is a sensitive question. I''m just trying to give him some options. Thanks!!

 

[ladykemma]

1. layaway
2. buy secondhand
3. on credit
4. save your pennies to buy from online vendor

1. Layaway - I love layaway. Helzberg will give you a year to pay for what you want. They keep the ring while you pay for it. May I suggest, if you can't find online financing options, a 1/3 carat 'helzberg diamond masterpiece" (GIA certificate) in a tiffany style platinum setting? will be about 2000. so after down payment you can have it paid for in about 1 year in $200 payments.

2. Buying secondhand. You can pick up used diamonds for 1/4 of what they cost in a store. then go get a fresh setting. You really have to know what you are doing when you do this and take a friend.
cash only.

3. ouch credit. OUCH. please don't go into debt for a ring. Most jewelry store credit cards are at 24% interest. Usury. Get a token ring and when you are more settled, then have an agreement that after X years you can get a real ring.

4. Do a search on debt, financing. there are very interesting discussions on this.

5. save your pennies, figure out what you want from the online vendors, then save for the ring.

edited to change dollar amount

 

[Gonzodogg]

I know you probably do not want to hear it, but I would not finance an engagment ring. I would buy whatever you can afford right now and if you are not happy with it later you can think about upgrading when you have the money. Although most of the the online vendors do not offer financing, they have great upgrade policies.

just my .02

 

[CaptainPolyester]

Murr,

financing is a bit of an issue.
Another, more financially reasonable, route is a personal loan from a bank.
Check out more reputable banks online, like suntrust:
https://www.suntrust.com/portal/server.pt?space=Opener&control=OpenObject&cached=true&parentname=CommunityPage&parentid=0&in_hi_ClassID=512&in_hi_userid=2&in_hi_ObjectID=313&in_hi_OpenerMode=2&

or maybe MBNA:
http://www.mbna.com/loans/weddings_spec_events.html

If you''ve got decent credit, you can obtain a loan of up to 20K+, and make interest payments only on a monthly basis until you''ve got more resources to payoff the loan.

NOTE: taking a loan and making interst payments only is only going to INCREASE THE COST of the purchase over the long term.. The best thing would be to pay it off as quickly as possible. The nice part is that places like these (which are reputable), offer more reasonable interst rates (around 10%).

 

[Oleander]

I am of the opinion that one should not finance an engagement ring either. It''s a luxury item, and most likely financed at a high interest rate. Save your debt for items which are an investment (a home) or on evil necessities (cars). You will be happier in the long run, even though it doesn''t seem like it now.

You can either buy a real gemstone (any kind, doesn''t need to be a diamond) that you can afford to pay cash for on the spot, or go with a CZ for now. It will still have the same meaning to you as an engagement symbol.

Or save save save for later.

 

[pinkflamingo]

we were able to put my ring on a 0% credit card and pay it off within a year. I would suggest looking into this. We do this often- we both have good credit so we get 0% offers all the time. it beats paying high interest on a loan.

 

[Murr4168]

Pinkflamingo--I think that''s probably our best option. I just can''t understand taking out a loan and paying more for the ring in the end.

 

[allycat0303]

Well I wouldn''t open a credit card at 0% for a ring...just because the more credit you ask for, then your credit score goes down. That becomes an issue when you try to get a mortgage, and can have a huge effect on the amount of intrest you are charged (at least in Canada).

If you''re really set on financing, I think Bluenile.com. But I''d be careful because there''s still wedding, house, etc., to pay for so racking up ring debt may not be that good.

 

[Modified Brilliant]

Who needs added pressure and stress at a happy time in your life? Buy a smaller diamond ring that you can afford with the option of trading up at a later date.
I''m also against financing, even at zero percent. Oftentimes our intentions are good to have it paid off in 12 months but something crops up and then a high interest rate kicks in. Stay in your comfort zone. Good luck.

www.metrojewelryappraisers.com

 

[coda72]

I second the 0% interest financing. As long as your disciplined and careful about it, it''s a great option. I''ve used it a few times, and it''s always worked well for me. I''m very much an instant gratification person. I want what I want right now, and so in order to get whatever it is, I use the 0% interest financing. I also have a great credit score, so using this option will not necessarily lower your credit score.

 

[pinkflamingo]

I will also agree with coda. We bought a house last year with a fixed rate mortgage and had no credit problems at all. We get 0% offers all the time, you just have to stay on top of it, always pay on time, pay off the debt. Now, 0% won''t last forever, but if you can take advantage of it, and use it responsibly and wisely- it is a good idea. Between inflation and diamond prices rising, it would be good to lock in a lower price now (only with a 0% rate) then to save for a year. JMHO, but only if you can pay it off by the deadline.

 

[pinkflamingo]

usually 0% offers are valid for 6-12 months in my experience. You have to look around for them.

 

[luvsdiamonds]

yeah instead of going in debut,,, for your ring.. I would get something small and then save up for the trade up... I just yesterday talked with Renee from Whiteflash about their traded up policy. WIth then as long as you purchase a cert. diamond you can trade up at a $500.00 increase at anytime. So you could get like a .25 or a .30ct and it be beautiful ,,, and then save up $500 and find a stone increased by that amount and upgrade!!!! I''m thinking of doing it myself in a pendent to slowley build myself a nice size stone!

 

[fire&ice]

Date: 6/20/2006 11:32:58 PM
Author: pinkflamingo
we were able to put my ring on a 0% credit card and pay it off within a year. I would suggest looking into this. We do this often- we both have good credit so we get 0% offers all the time. it beats paying high interest on a loan.

Probably the best option if you are responsible about it. But, I certainly wouldn''t take on more debt than you can handle & you have to consider the opportunity cost associated with the debt regarding other purchases like a house.

Or you could buy a CZ and replace it when you have saved up enough money.

 

[blodthecat]

Hi there!

Stick to a budget you can afford. A lot of us pricescope ladies have started out with very small diamonds (and have been happy with it) Further down the line, we have upgraded for an anniversary etc... which is sooooo nice, and something to lookforward to.

Blod

It''s a bit like when you get your very first car....it isn''t always a top of the range BMW...right?

 

[Mara]

i love 0% financing...we get way too many offers, but basically one of my existing cards always has an offer at some point or another for 0% so it makes it easy to get something as long as i can pay it off within a few months. typically the offers are anywhere from 3-12 months. otherwise, i'd just save and get what you can...i'm not a fan of paying interest for something like a luxury ring!!

 

[Tacori E-ring]

My FI paid for my ring in cash. He hates financing anything. This is obviously not always an option so I agree a CC with low interest or some stores have 0 payments for 12 months is a doable option. I think it is important to pick a realistic budget so you CAN pay it off in X number of months.

ETA: I just got an American Express Blue card and I think it is 0% for 15 months.

 

[scott32]

Save your pennies. I always recommend paying cash for items other than a house. In terms of the stone specifically...remember, yo uwill probably be getting married in a year, then what are you going to do. Even a cheap wedding cans cost loads. I''ve been saving everything for the last year, working extra, opened aonther savings account. Most on line vendors offer a discount for a cash wire. I looked into Bluenile for a while, and they have financing through MBNA. However I did not want to purchase one of their sig diamonds without first seeing it. I like the idea of buying and perhaps sizing up at a ten yr if things are tight...Not to mention, sometimes marriages do not work out...A colleague of mine dimped 45grand on a ring...financed over haof of it. Got divorced after a year and is still making payments on it..OUCH!!!!