8 replies to this topic

[pasths]

OK,

I'm back in school so I'm broke:(

I'm looking at a band and a diamond that is going to run me $4000.

Do the in store financing normally have better rates then say my 14% credit card?

Do I have any other financing options?

Thanks!

[denverappraiser]

pasths, on Wednesday, Nov 29 2006, 04:34 PM, said:

Do I have any other financing options?

Sure, buy something less expensive.

Jewelry is a terrible thing to go into debt for. Really. You can upgrade later to something more extravagant when you have more money. She knows you’re tight on money and wants to share in your life anyway. Don’t start out with $4000 worth of debt that you can avoid. Diamonds are NOT necesary and you can get a perfectly lovely ring for a few hundred dollars.

To answer your question, the implied interest rate at most jewelry stores that offer financing is huge. The prices are usually considerably higher to start with and they tack on interest in addition. The interest rate will be in the fine print on the brochure.

Neil

[jenner0483]

Some Jewlery places also let you put it on Layaway. Thats also an idea you can do if you put little payments a week on it.

[WebGal]

I'm with Neil. Buy something more modest from a dealer that offers a trade up policy. That way you have equity in your purchase, you can enjoy it RIGHT now with the goal of getting something larger in the future.

[brianknox]

pasths, on Wednesday, Nov 29 2006, 05:34 PM, said:

...Do I have any other financing options?

...

Yes, I would check with some independent stores near you.
Many will offer six month and twelve month interest free plans that at least give you that period to pay down the balance or arrange other financing.

Please be aware that these plans may have rather high interest rates if set up on a revolving basis after the interest free period, but maybe not a lot worse than some credit cards.



Ps, I agree that jewelry is a bad thing to go into debt for.

[pasths]

Thanks for the advice! I'll have to mull it over.

[Pookabean]

I second layaway. I got my ring at the "maul" and it was put on layaway for quite a while. I would even go and visit it.

[J'taimeCartier]

Over 30 thirty years ago there was a fincance company called "HFC" (Home Financial Company). They had a witty little jingle on the television that went...
"Never borrow money needlessly, but when you must, be sure to go folks you trust." Always remembered that. But if you must, many, if not the bulk do offer interest free financing and many are also negotiable. They say 12 months interest free, ask for 18. As long as you pay it off in the period, you win.

Let's see... $4000 divided by 18 = $222.22 p/month, plus whatever your sales tax is. Can you afford that?

[diamondsbylauren]

Hi guys- let's also remember that 12 ( or 18 month) interest free finanacing leads to massive problems down the road.
Once you've used up your "free" period, interest kicks in.
NOw, when it does, it's no small number like 14%- they usually charge intot the 20% range.
PLUS_ and this is athe killer- if you have not cleared evety penny of the balance by the end of the "free period" they tack on ALL THE INTEREST FROM THE FREE PERIOD.

So, if it was a 12 month "free" deal, day one of month 13 generats a whopping interest bill.

If one could actually pay the entire balance before that happens, it's a great deal.
Problem is, most people don't pay the thing in time, and are suprised to learn they will be paying all the interest in the end.