Please stop charging jewelry.
I know it makes jewelry more affordable because it allows you to make smaller monthly payments, but trust me, it’s really not worth it.
Don’t use jewelry stores’ charge cards.
You’re not getting a good deal.
I know, charging is the American way. You can have your jewelry now and pay for it over the course of the next few months or years. But, you’ll end up spending way too much for that jewelry in the long run.
People will shop around forever just to get the best price in town. They do everything they can to save a buck or two on their purchase. Then they ruin it by putting the item on a jewelry store’s charge card.
Expensive lines of credit:
A jewelry charge card is a line of credit that the jewelry store gives you, in-house or through a local bank or financial institute. These cards usually charge up to 24%+ interest on your purchase.
So what happens is that extra money that you saved on your diamond purchase just got thrown out the window.
By the time you’re done paying for that diamond, it could be years down the road.
And guess what?
You’ll have paid hundreds, if not thousands of dollars more for that item.
Suddenly that $1,800 purchase turns into a $2,800 purchase or more depending on how much you put down, what your payments are, and what the fees are.
And the problem gets worse:
People don’t limit themselves to buying just one item on the charge account either. They continue to charge jewelry all year long; Anniversary gifts, birthdays, Christmas, valentines. There’s always a special occasion that will call for jewelry.
The charge account is an easy way out. It’s there already. You have a balance on it. You’re already making payments. It only raises your payments $15.00. It sounds like a perfect solution…
This is the kind of thinking that gets many into financial ruin.
Charging is an addiction.
An addiction just like jewelry is. Once you get yourself into that hole, it’s almost impossible to climb out.
That’s why I say “Don’t charge jewelry.”
Pay cash if you can. It’s not worth the added fees, burden, or stress.
If you end up paying double the price for that jewelry, then it’s not a good deal.
If you must charge your jewelry, then be smart about it. Take advantage of “same-as-cash” financing or interest-free plans. Pay it off with in 90 days, or 6 months, or a year, whatever the terms of the account are.
Save that money.
Don’t spend it on wasted finance charges, interest fees and late fees.
Interest-free financing is the best way to buy an engagement ring or a diamond solitaire. If your jewelry store doesn’t offer interest-free, check with your local bank. Nothing says you have to use the jewelry store’s charge card. Heck, you can always put it into an interest-free layaway until you need it.
WHY PAY MORE?
Big jewelry purchases will probably need to be charged. This is understandable. Most people don’t have expendable cash laying around. But small purchases, those should be paid with cash, or if anything paid off quickly. Small purchases add up to big bucks. Be careful. A hundred here, a hundred there will take your account up to $3,000 before you know it. And then look at all those finance charges. Not pretty.
Try not to charge much. Interest-free is the only type of financing plan that I would advise (especially in today’s market). That’s if you want to keep your “good deal“.
Otherwise pay cash, or same-as-cash.
Because no one likes to say bye-bye money.
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