Submitted by [deleted] t3_11dp1ug in personalfinance
[deleted]
Submitted by [deleted] t3_11dp1ug in personalfinance
[deleted]
Financing jewelry sounds like a wise idea only when compared to financing a sport bike.
Never finance an engagement ring
Just noticed fiance and finance
Never finance a fiance either.
If you have the money to pay for it, then pay for it.
Why isn't delaying the engagement an option? Would your partner be open to the idea of a placeholder ring until after you buy the house?
And if your partner is more focused on getting an expensive engagement ring now, you might want to reconsider the engagement.
[deleted]
Mortgage guy is right. Essentially you are applying for a new credit card with a 0% introduction period and a clause that says if you go over you owe the full amount of interest.
Why can’t you delay the engagement? My wife and I bought a house together a full year before I proposed to her. That was 10 years ago and the house has appreciated significantly while her ring is an overpriced rock.
[deleted]
No such thing as 0% financing as they are not the bank, and they bake it into the price. Negotiate a better price if you pay in full.
If you're spending the money anyway, sure, take 0% but realize why the deal exists. It's to make you spend more than you have, and if you screw up the payments, you'll usually get all the back interest at once. So don't overspend and set up auto pay and put a reminder in your calendar for the 11 month mark.
If the terms of the financing actually say “0% interest,” then you will NOT get hit with retroactive interest because the rate being charged for the first 12 months is literally 0%. The 0% figure is a federally regulated, and lenders are very careful with it. If the terms don’t actually say “0%” but instead use language like “pay no interest for 12 months,” then you’re playing with fire. Owe so much as $1 at the end of the “interest-free” period and you’ll owe all the accrued interest.
If you must do it, get a credit card with a 15-month 0% promotion, cash back rewards and a sign-up bonus. You’ll get some money back and time to pay it off.
Its a horrible idea to finance big purchases before buying a house. Hard to give you good advise when we dont know the cost of the ring, amount of cash, income, estimated housing purchases.
​
I assume the next post will be is it a good idea to finance my wedding at 0% Apr...
Why are you so bitter mate? Isn’t the point to be helpful, not rude?
[removed]
[removed]
[deleted]
The best solution is probably to get a cheaper ring, but if you're not willing to compromise on that, why not get a credit credit card with a 0% APR promo AND a sign up bonus?
In Brazil 0% interest sales are possible with credit card or a payment method we only have here called crediario.
If you could use the money in other things maybe is a good plan, what isn't a good plan is pay for expensive jewelry.
Fluxmuster t1_ja9yg7q wrote
I'd be really careful with that. A lot of "0% interest" deals have sneaky clauses where the moment you go over the 12 months you owe all the interest that would have otherwise accrued during that period.