In what now seems a quaint idea, people used to save up the money needed to buy what they wanted. In today’s “instant gratification” world, there is no need to anymore. Finance by way of credit cards or personal loans are mindlessly easy to obtain, so why wait? Since we can get the benefit today and pay for it over time, we have the opportunity to live tomorrows dream today.
With finance costs seemingly dropping every other month, it seems we have reached Nirvana; we can have our cake and eat it too… But of course, if something seems too good to be true…, well you get the idea.
Not only will borrowing for something like an engagement ring cost a lot more than the original purchase price, it will likely delay buying your dream first property. And possibly affect your ability to obtain finance. Cards and personal loans are easy to get but expensive to service. Mortgages are now a bit cheaper but also a bit harder (post Royal Commission). The loan you took out to obtain the perfect ring and impress your spouse to be, will be taken into account is establishing your capacity to pay for a house loan.
Even a cash purchase for an expensive ring has a direct effect on the deposit available for your home, so think carefully as to which is your greatest priority. But preferably don’t say it was our idea that you chose the cheaper option… Whilst this sort of decision might be appreciated over the longer term, we aren’t sure it will impress your better half right now.