How Much to Spend on a Wedding Ring: Finance or Not?
Buying an engagement ring is never easy, it is expensive and nerve-wracking. You want to buy the right ring for your partner, but you want to do it at the right price. It goes without saying that if you can afford it you should always pay for a wedding ring in cash, but this isn’t possible for a lot of people out there. These wedding rings range from cheap to unimaginably expensive. People say that you should spend two months’ salary, but this is mainly just marketing malarkey. How much should you really spend on a ring? And is it possible to finance it without falling down the pit of debt?
How Much to Spend
As it turns out the average couple spends just over $2,000 on a ring according to a new study from TD Bank. Those who spent between $2,500 and $5,000 were 17 percent of the people polled and people who spent $10,000 or even more were just 7 percent of the people that the researchers polled. Paying in cash is always preferable, but there are a few options when it comes to finance. Avoiding high APR and unnecessarily high interest and fees will help you purchase the ring that your partner deserves.
Pros & Cons of Financing a Ring
The pros and cons of financing are fairly self-explanatory. Some of the positives include the fact that you don’t have to pay the money back right away. You can get the ring that you want to buy for your partner without having to have all the cash on you. It can buy you some time instead. According to the site MoneyPug, which is often used to find payday loans online, if you find a 0 percent APR financing deal, you will be able to take advantage of a loan without having to pay extra interest. This, however, is rare. When you are thinking about taking out money for a ring, make sure the APR is as close to zero as possible.
As for the cons of financing, the number one inhibitor as that you will likely have to pay more than you would if you bought the ring in cash. For example, interest adds up and will cost you, especially if you can’t pay the money back right away. Not only does it cost more, it can negatively affect your credit. You should always have a good credit score before you take on financing, but if you have trouble paying back the money you could find yourself in the vicious cycle of debt and repayment.
Methods of Finance
The best way to get finance for a ring you are trying to buy is to try to get a deal directly from the store. Some jewelry stores offer financing options because they want to make the sale. This can motivate them to give you a better deal, but be careful. There could be hidden fees and a high interest rate. If you can strike a good deal, you will be able to pay it back before fees go up.
Another option is to use your credit card to pay for the ring. It can typically be about 16 percent APR to do this, which is not cheap by any means. You will pay out the nose for the convenience to buy the ring when you want to propose. It might be better to take out a personal loan, but you should make sure that the interest rate is good, with the APR close to zero.
Personal loans should be under 10 percent APR. This is still expensive, but it can make it better than putting the ring on your credit card. Overall, you should shop around. See what your options are. Only then will you be in the position to make a decision on how to finance the ring should you be completely unable to pay for it in cash.
However large or small your budget, you have options. Paying in cash is by far the best option for you, but if you have to finance do your homework. If you do, you will have a better chance at getting the ring your partner deserves for a good price.