International Conference of Fundraising Managers

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Financing for Engagement Rings

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A popular song by a well-known British band reminds us that money can’t buy us love. While this may indeed be true, once we have love it can be awfully expensive. We are speaking specifically about engagement rings . If you have never had to shop around for a diamond engagement ring, then you probably don’t have a clue how much these symbols of everlasting love actually cost.

How much? The average diamond engagement ring has a price tag of nearly two thousand pounds. Of course, you can’t put a price on the happiness of the person you love, but that is quite a bit of money, especially in a poor economy.

However, for men who simply cannot afford a diamond engagement ring, but want desperately to buy one, financing is a popular option. As you might expect, financing consists of obtaining a small loan to pay for the new ring. This loan can often be obtained directly from the jewellery store, from a bank or credit card company.

The most attractive financing option for engagement rings is three-month in-store financing. Since the loan must be repaid in a short time, the store usually will not charge a customer any interest. But when a buyer cannot repay the loan promptly, they may be subject to pay late fees and penalties.

The two other popular in-store financing options are six-month and one-year loans. Unlike the three-month option, these agreements will require that a customer put some money down, often between 10% and 30% of the value of the ring. They will also charge interest at a rate of 9% to 20%. So, if you believe that you can raise the funds in a short time, it is obviously better to ask for 3-month in-store financing.