Post # 1
I’ve read quite a few posts where bees will talk about financing a ring like its ridiculous…
Just wanted to briefly share why we financed and why it worked for us. My engagement ring cost almost 10k; and yes we could afford it many times over, yet we chose to finance. We did this because we got 0% interest; and it made more sense to let our money continue to earn compounding interest while using the CC companies money and earning points.
Also, why should we take the “risk” when we don’t have to; let the CC company do it. What I mean by that is that if for some reason there was a CATASTROPHY (I’m talking earthquake, or some other unforseen uninsured “act of God”), we would have our cold hard cash to use and a CC payment can still be made while making use of liquid $$ in the event of a crazy emergency disaster situation.
Anyway no massive tradgedies occurred; we still have plenty of money in the bank and the ring was paid off never paying a cent of interest; and we made money by keeping it in the bank (interest rates aren’t great but still!), and in cash credit cards rewards earned by using the CC.
Going in to debt doesn’t make sense when you can’t afford it and in an emergency couldn’t take care of yourself or your obligations.
But there are times when using credit wisely is appropriate, even for engagement rings. Just wanted to share; the statement was starting to bug me!
Any other bees go this route?
Post # 3
nope. I’m buying FI’s ring with cash
Post # 4
@sixta: Hmmmm, we paid cash for ours but I’m guessing (and I could be wrong) that other Bees are talking about not having the money to buy a ring in the first place. It sounds like you were already able to buy and afford the ring you wanted and just chose to finance it and be able to still earn interest, points, etc. That’s differnet from not having 10k in the first place and still going into to debt to buy a 10k ring. To me that is WAAAAYY riskier than what you and your Darling Husband did. To each their own, but I never, ever, finance – I’m sure it’s a sound choice for other people. I’m just so paranoid about money, I just hate having debt and will just wait until I can pay for the whole thing at once.
Post # 5
we have used the zero interest deals a few times – mainly to maintain our credit rating as both hubby and i have no debt
we paid cash for my ering but we did use a 0% interest deal for the 65″ flat screen and custom made high back leather fully reclining cinema seats with cup holders that hubby “had” to have (and yes im rolling my eyes)
interst free deals are good IF you pay off the entire balance before the due date and dont get caught by the fine print
Post # 6
@hisgoosiegirl: agreed. I have mentioned its not worth going into debt for certain bees depending on the financial situation.
@sixta: I’m new to the whole credit cards and payment options things, so I appreciate you shedding light on the situation. What you say makes great sense!
Post # 7
Nope. I truely do understand your point of view and I get it. However the flaws with big purchases like that on credit cards, many get into trouble bc they either think well I’ll pay more next month and skimp on the payment now or something does happen and they can’t make the payments in time before the interest does hit. For us there was a separate fund and we still do that with large purchases like travel etc. Our emergency savings is just for that, emergencys. We don’t use it for recreational purchases. So Darling Husband ring fund was entirely separate.
Post # 8
I think there is a difference between using credit when you could immediately pay it off and using credit because you need to. I agree with you — we did the same for my band (paid e-ring and Darling Husband band in cash). I could have paid it up front, but we chose to put it on a credit card for the rewards. And I paid the entire balance before the statement was due. I don’t think that’s a big deal. I think people caution against credit because some use it to live above their means. If I couldn’t have afforded my entire ring at once, I wouldn’t have bought it, but some would use it to have the lower monthly payments than the lump sum, and it’s those cases who wouldn’t have the cold hard cash in case of some disaster who shouldn’t be using credit. And yes I say shouldn’t as if I’m telling people how to live their lives; I’m not. Do whatever you want. I just don’t think it’s wise.
Post # 9
0% finiancing wasnt an option, so he paid it off in full. If you are financing but have the cash for it on hand, but choose to leave the cash in investments, then I dont really consider it “debt”. If we had the option to finance that way, we certainly would have.
Post # 10
No, we paid cash for my engagement ring & both our wedding bands. But I DO see why some bee’s finance. It builds up credit which is a great thing as long as you can make the payments! 🙂 Its whatever each couple wants to do. I don’t think its crazy to finance a ring. We just didn’t.
Post # 11
@hisgoosiegirl: Yes, Darling Husband was the same way…My ering was over the 10K mark, similar to OP, but Dh hates having debt at all, so he put it on his cc to get the points, and then paid it off before the bill was due so there was no interest. At the time, I didn’t understand it all, but since we’ve merged bank accounts and credit cards, I have his perspective which is, put it on the credit card and then pay it off before the bill is due so we get the points (redeemable for cash) and pay it off before the bill is due. Usually credit cards that have rewards/points have higher interest rates, but our general policy now is to get the points, and blow the interest off.
So as long as you pay it off before the bill is due, and especially if you get points or rewards, Cha-ching! Charge it:)
Post # 12
That’s great that you used the financing to your advantage, but I think the vast majority of people who choose to finance do so because they cannot afford to pay off the ring in cash, so they do not pay it off in the year of 0% interest, and don’t utilize all the other perks effectively. Then they end up paying for a ring with 20% interest for years to come.
Post # 13
We’re both in our 40s and wedding bands are perfect for us. I’m not a jewelry person so financing a ring didn’t make sense for us.
Post # 14
its neat to hear everyone’s perspective since this is one of those things thats not really appropriate to discuss IRL (private finances).
i just hadn’t heard any positives of financing brought up here before so thought it would be an interesting topic, thanks all for sharing 🙂
Post # 15
@jholler25: I try to do this whenever possible. Getting the points is awesome and as long as I know the money is in the bank to pay for it.
Post # 16
Bank interest rates just aren’t worth enough to do this, we paid cash.