(Closed) “Going into debt for a ring” Why financing isn’t always the devil

posted 9 years ago in Rings
  • poll: Did you finance all or part of your e-ring?

    Yes

    No

  • Post # 17
    Member
    10361 posts
    Sugar Beekeeper
    • Wedding: September 2010

    We never finance anything. A house is the only thing we would consider financing unless we were in dire straits – and that’s what an emergency fund is for.

    Post # 18
    Member
    5295 posts
    Bee Keeper
    • Wedding: January 1993

    View original reply
    @jholler25: that’s exactly what DH did – put it on his credit card and earned 1% back which was decent on a several thousand dollar purchase, and then paid it off before the next month.

    Post # 19
    Member
    270 posts
    Helper bee
    • Wedding: April 2013

    I firmly believe in abusing the system that tries to abuse you. I have the cash to pay upfront for almost all of my purchases. However, I also have a credit card with astronomical interest rates and 2% cash back (3% on certain “specialty” purchases). So, I buy absolutely everything on said card, pay it off in full every month and get a nice check every so often. It’s like the credit card companies are paying me for being their customer! I’m certain that, if the option is available to him, my SO will absolutely finance at 0% (my dad calls this “free money”) or charge the ring on his CC and then pay it off in full to receive cash back (unless he deals with a jeweler that would give him a lower price for an all cash transaction).

     

    ETA: This was my 100th post! yay! *happy dance*

    Post # 20
    Member
    3315 posts
    Sugar bee
    • Wedding: October 2009

    We avoided the whole issue by not having engagement rings.

    Post # 21
    Member
    183 posts
    Blushing bee
    • Wedding: May 2012

    Yep, we went this same route, but I agree with the other bees.  When i read this statement on other posts, I consider it to mean “we took out loans because we don’t have the money to pay for it and will now be in debt for the next 20 years and pay more in interest than we should.”  You are not in debt if your net worth is greater than your total debt, which in yours and my case, was not what was happening.

    We paid for the ring with a credit card, and earned a ton of rewards cash for it, it was like getting 5% of the ring for free.  We paid off half of it the first month so that it would have some balance roll over to earn more credit, then paid off the second half the second month.  Sure we had enough money to pay for it in cash, but we might as well earn while we burn, I always say.

    Post # 22
    Member
    682 posts
    Busy bee
    • Wedding: November 2011

    we use AmEx to pay *every* bill we have and then pay it off on the 27th day. Eac month the total charge is around $5K. We accumulate massive points and we are using them to honeymoon and we also use them to get gift cards that we give as gifts.

    Post # 23
    Member
    2583 posts
    Sugar bee
    • Wedding: June 2012

    My ring was under $400 total and we financed for the same reasons you did. Gained interest on our money in the bank, built credit, and if we could spend $400 over several months instead of one, why not?

    Post # 24
    Member
    1271 posts
    Bumble bee
    • Wedding: December 2013

    well, Fiance paid for my ring with his credit card.  he did it without my knowing, or else i would have asked him to hold off, mostly because his credit cards are NOT 0% interest as yours seems to be (must be a promotional rate on a new card?), AND i’d just helped him pay them off.  to be fair, he used the card with the lower limit and lower interest rate, and he’d decided to wait to give me the ring till he’s paid it off (since we thought it would be a good idea to wait till we’ve been living together a few months before making it public anyway).

    that said, the ring he bought me is a small fraction of the price of yours.  we’re not exactly rolling in dough here, so running up credit cards is not on my list of responsible activities right now.

    Post # 25
    Member
    1723 posts
    Bumble bee
    • Wedding: June 2012

    We did.  It was 0% and will be paid off before interest begins.  I always use a CC whenever I order something that I don’t get to see in person until it comes and pay a deposit.  That way, if something goes wrong, I haven’t already paid it all and have to wait forever to get my money back.  FI and I discussed it and thought that was a good idea for this purchase.

    Post # 26
    Member
    215 posts
    Helper bee
    • Wedding: June 2012

    Hmmm.. mine was almost 10k as well, but luckily we financed it. He had eight grand in the bank at the time we bought it (about to pay it off in a couple of months!), but literally right after we left the jewelry store in Austin to drive another 3 hours home, the car broke down (next to 6th Street) and it was almost $1200 to fix. That’s okay though, we’re working on saving up money for the wedding and we’ve got a bit of it paid off already, and it isn’t for another ten months 🙂

    Post # 27
    Member
    4801 posts
    Honey bee
    • Wedding: August 2012

    We financed it as it was at 0% interest for a year.  The money is also sitting in the bank…it will be paid off well before the year is up.  We didn’t have it at the time, but it took Fiance just a few months to save it up.  I wouldn’t have wanted him to do it that way if he had to pay interest though.

    Post # 28
    Member
    1627 posts
    Bumble bee
    • Wedding: June 2011

    Mine was zero interest for a year too, so we went for it.  We were able to get a ring sooner this way.  Nothing out of reach though.  Our options were finance now and pay it off for a few months while we have the ring or wait a few months and save up to buy the whole thing.  We decided we might as well have the ring now since there weren’t any consequences for being impatient :).  And it got paid off with plenty of time to spare.  I paid cash for my husbands wedding ring though since it wasn’t nearly as much.

    Post # 29
    Member
    1041 posts
    Bumble bee
    • Wedding: November 2012

    I see no problem with buying something with credit that you can afford with no interests or to get cash back. But I would judge someone for buying something they cannot afford, on credit, because they can. Im sure none of the comments you are speaking of were aimed at someone like you.

    Fiance paid for my ring in cash (and it was well over 10k). He saved up and bought it when he had the money. He really hates to have any debt looming over him, even if its something he can easily pay off. He wasnt worried about any emergencies since he has money set aside for such things seperate from the ring savings. He said he did not consider fianacing because he did not want to be obligated to payments, if God forbid, he was unable to work for some reason.

    That being said, we are putting most of our wedding expenses on our cards that earn cash back, but paying them off by the end of the month.

    Post # 30
    Member
    466 posts
    Helper bee
    • Wedding: July 2012

    I told my fiance before he asked me that I flat out refused to let him spend more than $2000 on my ring. All of our accounts are joint and have been for many years so its my money too and I have wayyy more important things that I need money for (like our holiday to europe, paying off car loans, saving for deposit on a house etc). I also told him he wasnt allowed to buy one before our holiday as we needed the money, but over 6 months he moved money without me noticing and paid for mine cash and proposed on our holiday 🙂 I easily forgave him, lol

    He came in under budget and did a very good job with his selection. I am happy as not only did he custom make the ring I really wanted, but he didnt overspend. Yay!

    Post # 31
    Member
    2 posts
    Wannabee
    • Wedding: October 2012

    My Fiance paid for it on his credit card (to get the grocery points) and then immediately paid it off in full. In fact, if I was more observant than I might have blown the whole surprise, because he went from having NO free points for groceries one month to having ~$50 worth the next month, haha.

     

    Just one note on the rewards points offered by credit card companies: the retailers are actually the ones paying for those rewards (they pay a fixed amount or a % of every transaction to the CC company – more rewards means higher fees) and of course they then pass that fee along to their customers. So, you know, if anyone’s getting screwed it’s those who pay cash, because they’re helping fund part of the rewards that CC users are earning, ha!

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