Deciding to tie the knot is one of the most important and exciting but also costly times in a couple's life. According to recent reports, weddings cost a staggering €29,812, and many couples are looking for ways to raise money for their celebrations.
An engagement ring is usually the first significant outlay when wedding planning, but what is the best way to finance an engagement ring in 2023?
As one of the best fine jewellers in the Dublin area, we can help you understand more. Before we head into details, let’s start with a short answer.
To finance an engagement ring in 2023, you can save up, use layaway (a put-by-scheme), pay with a credit card, a personal loan, a home equity loan, put down a deposit or ask your jeweller about finance schemes.
So now we’ve got the quick takeaway, let’s find out more about financing an engagement ring in 2023.
Ways to finance an engagement ring in 2023
When you’re ready to take the next step in your relationship, you may wonder how to finance an engagement ring. There are a few different ways to pay for this special purchase, and the best option for you will depend on your personal financial situation.
Saving: One popular way of engagement ring financing is simply by saving up for it in advance. This can be a good option if you have the discipline to set aside money each month and you don’t mind waiting a bit longer to pop the question. However, if you’re unsure how much you need to save, a general rule of thumb is to set aside three months’ salary.
Credit card: Another way to finance an engagement ring is to put it on a credit card. This can be a good option if you have good credit and can afford to make the monthly payments. Just be sure to pay off the balance as quickly as possible to avoid interest charges.
Personal loan: After choosing an engagement ring, Some couples decide to finance it with a personal loan. This can be a good option if you have good credit and can qualify for a low-interest rate. However, be sure to compare rates from multiple lenders before taking out a loan.
Home equity loan: You could also choose to finance an engagement ring in 2023 with a home equity loan. This can be a good option if you own your home and have built-up equity. However, this option can be risky because you could lose your home if you can't make the payments.
Layaway or put by the scheme: Some jewellers will offer couples the option to pay a deposit and then make regular monthly payments until the balance is cleared. Once it’s paid off, you will receive your ring.
Finance through your jewellers: Most of the best jewellers in Dublin and across Ireland will be able to offer you financing on wedding jewellery such as wedding rings and engagement rings. So talk to them about your options. They are usually subject to approval, but the best engagement ring financing means 0% interest.
Regardless of your financing option, be sure to shop around for the best interest rates and terms. And be sure to factor in the cost of insurance when determining how much you can afford to spend on an engagement ring. Then, in a little more detail, let’s look at some of the more popular ways of financing a wedding ring in 2023.
Financing an engagement ring in 2023 with credit cards
Paying for an engagement ring with a credit card can be a good option if you have good credit and can qualify for a low-interest rate.
However, it's important to be aware of the potential risks involved. For example, if you carry a balance on your credit card, you'll end up paying interest on the loan. And if you miss a payment, you could damage your credit score.
Another thing to keep in mind is that some credit card companies require you to make a minimum purchase amount to qualify for financing. So be sure to read the fine print before you apply.
Engagement ring and personal loans
If you don't have good credit or are uncomfortable using a credit card, you may want to consider taking out a personal loan to finance your engagement ring. Personal loans typically have fixed interest rates, so you'll know exactly how much your monthly payments will be. And since they're not secured by collateral, they tend to have lower interest rates than other types of loans.
Using a personal loan to finance an engagement ring can be a good option if you have good credit and can find a loan with a competitive interest rate. Just be sure to compare loan terms before applying to ensure you're getting the best deal.
Saving up for an engagement ring
Of course, one of the best ways to finance an engagement ring is to save up for it beforehand. This may take some time, but it's usually the most affordable option in the long run.
Start by setting a budget for how much you're willing to spend on an engagement ring. Then, open a dedicated savings account and make regular deposits until you've saved enough. If you have trouble saving or don't want to wait too long, you could also consider buying a less expensive ring now and upgrading to a nicer one later.
Can I put a deposit down on an engagement ring?
Yes, most jewellers will allow you to put a deposit down on an engagement ring. However, the deposit amount will depend on the total cost of the ring and the jeweller's policy.
The deposit may be applied to your total balance if you're financing your engagement ring. But if you're paying for the ring in cash, the deposit is usually non-refundable.
“For those couples who want to show their individuality and also, keep to tradition may want to enjoy the best of both!”
Layaway (put by scheme)
One popular way to finance an engagement ring is through a layaway scheme. With this option, you make regular payments over time until the ring is paid off.
Then you can take it home and propose! Layaway can be a good option if you want to spread out the cost of the ring and don't mind waiting a little longer.
The average monthly payment for an engagement ring in 2023
The average monthly payment for an engagement ring will depend on the total cost of the ring and the repayment period.
For example, if you finance a €3,000 ring over 24 months, your monthly payments would be around €125.
Making small monthly payments can help create an engagement ring more affordable. But remember, the longer you take to pay off the ring, the more interest you will end up paying.
“It could be that you both want to match your wedding band colour to your overall wedding theme hue”
Ways to finance an engagement ring in 2023 with no interest
There are a few ways to finance an engagement ring with no interest. Some credit cards offer 0% APR financing for a certain period. You may also be able to find a personal loan with 0% APR for a set period.
Your jeweller may also offer finance without interest, so ask them about your options. However, keep in mind that you will still have to make monthly payments on the engagement ring even if there is no interest.
If you don’t pay off the balance before the 0% APR period expires, you will be responsible for paying interest on the remaining balance at the regular APR.
“With such a huge range of white bands, rose and traditional gold bands, there will no doubt be a ring that you both will love!”
And to finish on…Finance from your engagement ring jeweller
We at Gear Jewellers can help you finance a ring for your special day. As a registered partner with Humm by Flexi-Fi, you can quickly spread the cost over 24 or 36 easy interest-free monthly payments with full access to your self-serve portal; it’s easy to keep track of your payments and the benefits of paying for your engagement or wedding ring early without any charges or additional fees.
Click here and discover more about how to spread the cost and shop our beautiful range of luxury diamond engagement rings.