You spend Months finding the perfect Diamond Engagement Ring for your lovely Fiancee.
You're excited by the Clarity, Color, and the Sheer Beauty of the Diamond. You can't wait to give it to her.
But there's one huge hurdle you must jump...
The Price!
Or more accurately: Paying for it!
The F Word...
It's a shame that most people don't have lucrative bank accounts that allow them to pay $6000 cash for a Diamond Ring. What can we do about it? Most people have to turn to alternative sources, like the "F" word! Financing! Yuck! Just about every Jeweler offers some sort of Financing Plan. This is where your purchase gets scary.
Are you going to Read that?
The applications for finance plans have actually gotten better over the Years.
Most companies just simply require a few details and a signature. But the contracts are a different story. Have you seen one? It's like buying a House. It's a 50 page booklet!
Who wants to read that?
It would take 3 hours just to sort through all that mumble jumble. Sadly, most people don't read it. Many don't even look at it. Just a couple of people actually skim it, then sign at the bottom. Do we really have a choice? Do you need a Microscope to see that tiny print?
You may! But Financing at the Jewelry Stores is not the only way to go. You can also go to your personal bank and more than likely get a better loan. It's not a bad idea.
Here's why...
There's a lot of small print in those Jewelry Store Finance Scams. (Err, I mean Plans) Lots of fun little loop holes. Most financing plans available for Jewelry Stores charge anywhere from 18% to 25% Interest or higher! Ouch! And just about all plans charge huge fees for late charges or bounced checks. These add up very quickly. Your $6000 initial Diamond Ring purchase ends up being more like $9000 by the time you're done. (In 15 years!)
Doesn't sound like such a good deal anymore, does it?
That's why I advise Other Financing!
And one of the biggest things to watch out for are those special Same-As-Cash deals!
12 Months Same-As-Cash sounds wonderful, but proceed with caution. If you miss one single payment, or are late by even one day... Your account can change!
It instantly changes from that great Interest-Free account you had, to a High Interest paying account. That's it, just one late payment is all it takes... One time blows the whole deal.
And chances are good, that all the Interest that you would have had to have paid since the beginning of the contract, will be added back onto your account... Plus some huge Charges, Penalties, Fees and an Arm and a Leg.
SLAM! All it takes is one goof up.
It's Sad, but it's a Reality!
My Advice:
PAY CASH!
Or just borrow the money from someone you know. Or like I said before, go to your own personal Banking Institute and get a loan. Chances are you'll get a much better plan and end up paying far less for your Diamond Ring all together.
Not to mention the fact, that you can always put the Ring in a Free Lay-A-Way Account. That's a good way to go. Just pay on it once a Month. It's Interest-Free. I recommend this if you don't need to get the Ring Today!
It's your money, you can do what you want with it, but if you just spent 2 Months finding the perfect Ring for the perfect Price, it seems silly to me to then pay double for it!
Beware of financing plans!
You don't want to get Ripped Off!
Last note: Here's a good trick that I tell everyone, and it always seems to work well. Most Jewelers offer a 90 Days Same-As-Cash plan. If you pay it off in 90 Days, you pay no Interest. (Some 90 Day Plans make you pay per Month. Others allow you to pay it off before the 90 Days are up. See your Jeweler for details!)
Take advantage of 90 Days Same-As-Cash!
At the end of the Financing, pay if off with either your Credit Card that has a lower Interest Rate, or use your Bank Loan to pay it off. (Anything beats 25% Interest!) But at least this way, the first 90 Days are Interest-Free, and that you can't beat! It's not a lot, but in these times and days of huge fees and charges, every little bit helps.
Get a BETTER Deal!
Also note, that if you can skip the financing plans and Pay Cash, you'll probably end up getting a better deal for your Diamond Ring to begin with. When Jewelers have to Finance it, they lose part of the profits to the Finance Companies. So if they don't have to Finance it, a lot of times you can get a lower price on the Ring. Check it out... Be up front about it and ask. Cash allows you to wheel and deal more often. It gives the Jewelers a little bit more leeway.
Read the Contract!
And if you do finance it, please read the contract. Don't just sign away. Take it home if you have to. Read the details before you dive in and get scammed. Make sure you understand how much more money your Ring's going to cost you.
Larger Down Payments!
And keep in mind, the larger the down-payment, the better. You won't have to charge as much, and the Interest payments will be lower. And if you can, go with Lay-A-Way! If you don't need the Ring, why take it? Put it in Lay-A-Way and pay on it until it's half paid off. Then convert it over to a charge account. Every little bit helps!
Plans or Scams?
It's all in how you pay.
Hopefully, you'll Pay Smart!
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