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-   -   Money Options for Upgrading??? (http://www.diamondring.com/forums/showthread.php?t=74251)

ehilleary1979 10-15-06 07:27 PM

Money Options for Upgrading???
My hubby and I are still in our 20's, but in a couple of years will be upgrading my original diamond. We were wondering if people take out a loan for this sort of a thing or do they use their credit cards to help with the cost. I know we don't have and still won't have $15-20,000 just sitting around for my upgrade, but my hubby says that doesn't mean we can't make it happen. So he is assuming that there are others like us that want to upgrade, but need some help to get it done. Can you please let us know how people finance these $15,000 plus diamond rings?

Snooper 10-15-06 08:19 PM

Re: Money Options for Upgrading???
I'm guessing many put it on their credit card, but if you go with someone who has an upgrade policy, it won't see "too bad' when do you upgrade. Example, you paid $7,000 for the first diamond, and when you upgrade for a $14,000 you'd only have to pay $7,000.

Personally I'd never go into credit card debt for a purchase this large. I'd save save SAVE and then use my credit card, and then IMMEDIATELY pay it off to avoid interest unless you had say, a 0% apr on purchases or balance transfers for an extended period of time...

For my ER, we had 95% of it in the bank, but the rest we put it on the credit card, and then paid it off within the next statement...

Good luck!

sparkleluv 10-15-06 10:50 PM

Re: Money Options for Upgrading???
Call me fiscally responsible here (snicker, snort! Hard with diamonds!!!), but I'd be loathe to finance an upgrade. IMHO, it only makes sense to purchase what you can actually afford (which is why only the most lucky of us get the diamond of our dreams the first time). When finances permit, a bigger and better diamond can sparkle its way into the ring. My feeling is that the whole justification for an upgrade is the feeling that "We got the best diamond we could afford when we were engaged, and now we can afford to spend more to make this ring even more beautiful."

I hope you do get a beautiful upgrade and that you are comfortable with the price. In the meanwhile, enjoy this site and share pictures. We are all picture junkies around here!

RubyMu 10-16-06 12:11 AM

Re: Money Options for Upgrading???
I think that going into debt for a luxury item is just a mistake. Of course, you only live once and all that...but with finance you end up paying more than the sticker price. That works out when you take out a loan to purchase an item that has some capital gain (like a house). But then people take out finance for cars all the time....they end up paying more than the sticker price (interest, fees etc) for an item that depreciates rapidly. Go figure.

Personally, i'd not want to go into debt for it. If you are still 20 somethings..i'd think about putting that into a deposit for a home and wait another 10 years for the upgrade. But it does depend on your individual circumstances...like if your hubby is about to inherit a gazillon dollars..or you are about to become a brain surgeon....:)

Seriously though....do the maths. Find an interest calculator online. Even conservatively...say borrow $15K at a conservative rate of say 12%..over 5 years....that's $333 per month...and by the end of 2 years worth of payments you'll still owe about $9,800 on it, not including interest still owing. In total, over 5 years you pay nearly $20K for a $15K ring. On top of that, if you were forced to sell the ring....it seems that gals here get about half what they paid...so you could sell it privately for about $7,500. Sounds like bad maths to me.

jayrenay 10-16-06 12:25 AM

Re: Money Options for Upgrading???
I just upgraded after 12 years of marriage and for my 40th birthday. We paid cash for the first one (1 ct. pear) and paid cash (literally) for the 1.74 upgrade. We don't carry credit for anything except our home. We are making payments on a new Cadillac we bought in August, but only because we got 0% financing for 5 years. It would be my suggestion to you to wait until you have the disposable income.

I have heard about people taking advantage of the 100% upgrade policy some vendors have by upgrading a couple of thousand every year or two until you get to the desired size. But this would assume you have an extra thousand or two eacn year and a good upgrade policy.

Good luck,

AdaBeta27 10-21-06 01:28 PM

Re: Money Options for Upgrading???
If you belong to a credit union, you can put money on deposit and borrow against it at the equivalent of 2 or 3% interest. You have to agree to keep the amount of the loan on deposit, though.

What I have done is bought uncerted diamonds from estates. I like older cuts of diamonds and vintage settings so this has worked well for me. These diamonds have come with appraisals, ranging from independent appraiser to just the local jeweler. My experience has been that people settling estates want to liquidate fast, and do not necessarily know how to best market jewelry. They will often sell at 50% of appraised or less. 50% would be on the very high side, locally. It's even harder to move large uncerted diamonds 2ct or more. What I've bought has checked out on color, wt., and clarity. It may not be today's ideal cut, but is high-end and beautiful. The only fraud I encountered is my aunt's big diamond was switched for lesser quality by a crooked jeweler and this was not caught until we ran all of the stuff by a different jeweler to make sure it matched the appraisals we had, prior to sale.

AdaBeta27 10-21-06 01:32 PM

Re: Money Options for Upgrading???
... But I'll allow as how I have a higher risk tolerance than most others, LOL. ;-)

barry 10-21-06 08:48 PM

Re: Money Options for Upgrading???
Don't finance or go into debt for the Upgrade. Wait until you have the discretionary cash.

princessmichele 11-08-06 07:48 PM

Re: Money Options for Upgrading???
you're in your 20's ...why concern yourselves with these things now? do you have your retirement plans in order? if something happened to one of you (god forbid) would you be able to live off your savings and investments? do you have investments? you need to take this time to get your finances in order. what you do with your money today pretty much decides how you live tomorrow.
we are in our early 40s and got married when i was 29. at the time i received a 1.5 round brilliant. would i have wanted bigger? well, yes! the years went on and on my 35th birthday my dh presented me with a 5.03 EC set in platinum w/side baguettes. he is an attorney and we make a very comfortable living. whatever we purchase on credit is paid off every month. we pay no interest to credit card companies. please, take your time and plan wisely for your future. do you plan on having children? they are expensive and they would need to go to college at some point. just trying to help out. good luck to you.

flowers26 11-09-06 12:43 AM

Re: Money Options for Upgrading???
I appologize if I'm about to seem rude, but I have to ask: who... who is it that has these $15-20K rings? The average ering in the good ole USA is about 4K and that's a big increase from what it used to be. Legend has it that back in simpler times, when bunnies and kittens used to roam the earth and our parents were young, something in the neighborhood of .30 carat was a decent engagement ring (for the record, I still think it is). Sometimes I long for those days because I see too much pressure on couples to spend, spend, spend on a ring. Just because you'll never have enough to purchase a $15K ring does not mean you should feel justified in doing it now. It just means you'll never have have a $15K ring. There are worse fates in the world. And what are you upgrading from? To consider $15k-20K a reasonable upgrade would suggest that your current ring is sizable on its own. What are you reasons for wanting an upgrade?

There are some very beautiful rings out there, and I enjoy looking at them as much as the next person. But I'm betting that all those people with expensive rings are older than 20s and/or have more disposable income.

I would also consider finding and posting pictures of your dream rings. Some people here might be able to help you achieve a similar result for less.

DebraV7419 11-12-06 10:08 AM

Re: Money Options for Upgrading???
Your hubby is very sweet for wanting to make this happen for you!! I would suggest, as others, that you find ways to pay cash (start putting money aside specifically for this - maybe tax return money, $X a month, etc). You're here and doing reseach, so that will save you some money also. Good luck!

assoverteacups 11-12-06 06:36 PM

Re: Money Options for Upgrading???
make sure there is money for the things you need.

save cash for the things you want.

things will crop up you never intended, make sure you dont get caught owing an unexpected bill or debt with no savings and a $20,000.00 ring. even wonderful giving humble folk will think twice to help you out of a bind when you are sporting a 20k rock and cant pay your heat bill.

out of control personal credit card debt makes people loose sleep, fight, get depressed, go bankrupt, and it can destroy marriages. ive seen it happen, ive seen people go into outlandish debt to have things that give the illusion of wealth or success. it is only an illusion with those who really cannot affort such a lifestyle. living with peace of mind and contentment is a nice life, i wish more would try it.

CandySplitShanks 11-13-06 12:25 AM

Re: Money Options for Upgrading???
I personlly love to see smaller diamonds in simpler settings.......its so refreshing. Bigger doesn't always mean better. You can find something really nice on any budget.

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