(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 # 47
    Member
    2161 posts
    Buzzing bee
    • Wedding: July 2011

    My husband had the option of 6 months, no interest.  It wasn’t a big deal at all.  The only time I would think it was bad is if the interest rates were high or he couldn’t really afford the ring.

    Post # 48
    Member
    1271 posts
    Bumble bee
    • Wedding: December 2013

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    @justelope: THIS.

    Post # 49
    Member
    96 posts
    Worker bee
    • Wedding: October 2010

    @sixta: I don’t have a dog in this race, but I want to point out that I don’t quite agree with your risk assessment. When you finance $10K at 0% you are still carrying all the risk. 2 months into making the payments, one of you could lose your job(s) and you would be stuck with $10K worth of ring payments that you may not be able to make because of various other payments that must be paid (mortgage, school loans, etc.) In addition to the risk of damaging your credit scores with late payments, that 0% would immediately jump to over 20% in all likelihood.  If you save the $10K you are not creating any risk. If you lose your job and only have $7K saved, you could funnel it away, or just get a less expensive ring.  You would have all sorts of options.  I’m not making any normative statement about what people should do, but it’s incorrect to say that there is no risk in financing $10K at 0% as compared to someone who saves $10K and pays in cash.

    Post # 50
    Member
    3048 posts
    Sugar bee
    • Wedding: January 1991

    No, he don’t think he financed it. He put it on layaway. If he financed it, then it would’ve cost more for him to have the ring. And he didn’t want to pay more just to have the ring in hand. So putting it on layaway was best in his situation, he didn’t have to keep up with where it was, the price didn’t go up, he could pay at his own pace, and he didn’t have to pay more for interest.

    Post # 51
    Member
    352 posts
    Helper bee
    • Wedding: October 2012

    Fiance intended to pay all cash upfront but we were at the mall and that day was the debut of the Nook Color and he HAD to have it. So, he put $1,000 down and financed less than $500 so he could get the Nook that day. 0% interest and it’s nearly paid off.

    Post # 52
    Member
    352 posts
    Helper bee
    • Wedding: October 2012
    Post # 53
    Member
    2609 posts
    Sugar bee
    • Wedding: December 2009

    @sixta:  Darling Husband paid cash for my engagement ring, but if he had a credit card at the time, I would have urged him to put it on the card to earn points, but immediately pay it off.

    Post # 54
    Member
    112 posts
    Blushing bee
    • Wedding: May 2012

    Originally, we planned to put it on the Amex to get the airline miles and then pay it off before the bill came due.  But the jeweler offered us an extra 10% off if we paid cash, so that’s what we did! I would NEVER recommend financing something you don’t have cash in the bank to turn around and pay off that day if you needed to.

    Post # 55
    Member
    474 posts
    Helper bee
    • Wedding: July 2012

    We paid for ours in cash. Also, it cost less than a months rent and it’s insured.

    Post # 56
    Member
    1941 posts
    Buzzing bee
    • Wedding: June 2009

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    @Verno Inferno:

    This! This is exactly what I was thinking when I wrote my reply. There’s always a risk using credit.

    Post # 57
    Member
    1941 posts
    Buzzing bee
    • Wedding: June 2009

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    @LindaD76:

    Our card is through our bank, PNC. The points are awesome especially since they match now and we have 0% interest. Now if we carry a balance over the statement date which we don’t we always pay in full monthly, then yes our interest rate is no longer 0%.

    Post # 58
    Member
    1941 posts
    Buzzing bee
    • Wedding: June 2009
    Post # 59
    Member
    15015 posts
    Honey Beekeeper
    • Wedding: June 2011

    View original reply
    @Verno Inferno: The situation you describe here is a little different than OPs.  Yes, financing at 0% if you dont have the cash to back it up is stiill risky, but what OP descirbe was financing at 0% even though you have the cash to pay it off.  The choice is made to keep your money in you possession working for you as long as you can. 

    Post # 60
    Member
    15015 posts
    Honey Beekeeper
    • Wedding: June 2011

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    @MissGreen: I dont understand.  If you have to pay the balance in full every month, what is the point of having 0% interest.  And if you do always pay in full, what does it matter what the interest even is??  I’ve always paid my balance off in full and I have no idea what my interest rates even are, nor do I care cause i will never pay a cent of interest.

    Post # 61
    Member
    1941 posts
    Buzzing bee
    • Wedding: June 2009

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    @pinkshoes:

    It matters because there ARE credit cards that charge interest on your average daily balance and not your balance left over. So you maybe paying interest on your balance due even if you pay in full. For example my friend has the same credit card but is a very high risk bc of her credit history so they do charge her interest on her purchases and it’s billed monthly no matter if she pays in full. Do you see now why the 0% matters? Not all credit cards are the same nor do they all charge interest the same. That’s why it is important to always read the fine print on your interest no matter how you pay; on how they calculate it and bill it.

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