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Should I finance my engagement ring

Call me old fashioned, but like the idea of saving up for an engagement ring and only buying it when you can afford it - cash. I don’t believe in starting a new life with someone based on debt, and like the idea of a debt-free (or let’s be real – as low-debt as possible!) start to a new chapter.

However, there is still a large group of people who would prefer to have their engagement rings financed. Many jewellers, especially the larger chains, have now started offering financing for engagement rings – often with a very alluring 0% interest drawcard, if you pay it off within 12 months.

Don’t lose the love

Wedding and engagement rings are symbolic, sentimental, and a big deal. There is also no doubt that it is one of the most expensive things you are likely to buy if your life. Even if you do choose to take financing, tale care not to lose sight of the reason behind the ring – its value comes from the love and intention behind it, not from what it cost.

Opinions on financing a ring are polarised – some are adamant that financing does not belong to the world of engagement rings. The other group believe that it doesn’t really matter, and that financing is just another means to an end.

Get it on credit

A solid credit score puts you in a better position if you need to borrow money. If you manage to qualify for a deal that gives you 0% for 12 months, it makes sense to take it, if you are confident that you will be able to pay it off within 12 months. Failure to do that will land you in a pool of massive interest, and you will end up paying far more than you bargained for.

Budget matters

A budget is the centre point of any financial decision, and will be single most important factor in deciding how much you are able to spend on a ring. Don’t be scared to budget in collaboration with your intended, and if you are keeping the proposal a secret, you will have to do it alone, but for the love of everything – please budget! This will ensure that you stay within your range, and don’t end up in deeper debt than you can afford to get yourself out of.

I’m considering a loan…

If you are lucky enough to get a great financing offer, you can put the money you save through lower interest into the repayments as extra cash, to help you pay it off more quickly. Saving remains a good idea, and even if you can put down a portion of the overall price in cash, it will make a huge difference when it comes to calculating payback terms.

It is said that three to six months’ worth of savings is the acceptable guideline, but let your budget and personal tastes guide you when you make that decision. The longer you save, the more you save, and the less interest you will have to pay in the long run.