Thinking of popping the question, or simply surprise someone you love with a nice piece of jewelry? In any case, that’s a big decision. Especially so if I was right the first time and you want to buy and engagement ring. I can’t even imagine what must be going on in your head right now.
Like I said, that’s a pretty big decision. And I am guessing that you don’t want to postpone it any longer. The thrill you must feel while imagining yourself getting on one knee and your loved one all in tears of joy… I must say, I envy you.
And yet, there is something I am definitely not envious about. That is a rather big investment! Okay, I get it, not everything is about money and you want to get something really special and beautiful, because your partner deserves it. That’s nice and everything, but here’s a simple question to get you back to reality.
How are you going to pay for this? Unless you have large amounts of cash stashed away somewhere under a mattress, or you are a millionaire, chances are that you are in a pickle. All right, it’s not that scary, but you will definitely need to think about the options of financing your jewelry before you find the perfect ring. After all, what good does it do you if it is perfect, but you cannot afford it?
What Are Your Options?
Now, here is another important question. And I have a simple solution. The best way to pay is to pay in cash. I got you there, haven’t I? Okay, okay, I will stop joking around. It is, after all, an important life decision you are dealing with and I’m not helping right now.
But, I am going to help. That’s why you are here in the first place. The key is to find a good jewelry store, and all your problems will be solved. No, they won’t give their goods away for free just because you tell them a sob story about how you can’t afford this.
What they will do, however, is offer you a good financing method that will make your life much easier. Of course, the specific deal usually depends on the shop itself. But, in general, the options don’t differ that much. However, keep in mind to check out a few deals before settling on one. Related content.
Short-Term Loan From The Jeweler
One of the most usual financing options is getting a short-term loan from your jeweler. These are known to be better than private loans when it comes to the payment period and interest rates. Once again, everything depends from shop to shop, so you need to get yourself properly informed and do some comparisons to get the best deal.
These loans are sometimes referred to as “engagement ring payment plans”, but don’t let that fool you. Legally, it is structured like a loan. That means that your credit score is rather important and it will be checked to decide on the approval, as well as determine the interest rates.
When something costs at least a few thousand dollars, deferred financing sometimes appears as an option. Keep in mind that this might not be offered by all stores out there. However, it is not an uncommon phenomenon when buying diamonds.
Speaking of, learn how to pick the right diamond in this link.
People are known to completely misinterpret deferred financing. They seem to think that this is an option without any interest rate whatsoever, which is why it appeals to them so much. But, that’s simply not true. So, let me quickly explain it for you.
This is when you get a couple of months of 0% interest rate. But, that will accrue once the deferred period is over. Basically, that means that you will owe no interest rate if you pay off your entire debt during the deferred financing period. However, if you don’t, all of the interest will accumulate and appear on the loan balance. So, while it is a fairly good option, don’t let people mislead you with their ignorance and make sure you are aware of all the terms.