Buy diamond ring or pay CC debt?

[Guest Bree82]

OK, were kinda at a loss here. My husband and I rushed into marriage - quickie courthouse ceremony and I never got an engagement ring - I got a $40 wedding band.

 

My aunt is selling a ring/band with an appraisal of $9200 VSI 1.03 solitaire engagement ring - the wedding band is inset diamonds all around.

 

Shes selling it for $3,000

 

My husband just got his bonus check for $7,000. This money was going to go to getting me a ring, we then decided to use it to pay down CC debt (we have $11,000 in cc debt) BUT now that we have this option for the ring I want to take it.

 

Is this a bad decision? I mean, we can pay $7k to debt or get me a wedding ring and pay $4k to debt.

 

We are currently paying $1k/mo towards debt. So, if we get the ring it will take longer to PIF.

 

Im so split over what to do... I really want a ring and its a great deal but this debt drives me nuts. Im on Quicken daily looking at it and getting anxiety over it.

Edited July 5, 2008 by Bree82

[hegemony]

you could get the ring and sell it for a profit and pay off all the CC debt

[prudent]

Debt comes first. Don't fall into the trap of thinking "I can't pass this deal up." There will be other rings.

[Guest Bree82]

you could get the ring and sell it for a profit and pay off all the CC debt

lol! nope. my aunt would KILL me. She offered it to us for that price because we dont have a ring. Or else she'd sell it for more!

[bakerman]

This is only an opinion, and from a man. I wouldn't buy such a special item just because it was a good deal. In today's economy I think that you will have a much better feeling if you are better off financially.

 

If you are able to put $1000 a month towards your debt, then after it is all payed off it shouldn't take long to save for a ring, one that was chosen just for you.

 

MAC

[emoticon]

"The biggest no-brainer in the history of earth." John Shibley

 

Pay off debt. And you can quote me on that.

[Guest Bree82]

So in essence its a 3 month difference for our accounts to be PIF ... if we dont take the ring now shes going to sell it for full value (or whatever she gets) Now Im just making excuses...

[hegemony]

remember one size does not fit all. the anti-credit types will always parrot "pay off debt" but you need to be more nuanced and not one-dimensional:

 

you can calculate the additional interest you will pay for delaying your payoff. This will tell you how much buying it effectively costs you. It looks like it would delay you about 3.1 months. So is the ring worth $3000 plus the interest you will pay for those three months? Even if the APR is 18% you're only talking about a few hundred dollars. Only you can answer the question given what you think is best for your situation.

Edited July 5, 2008 by hegemony

[Guest Bree82]

I didnt think about it that way Hege - So Im losing a few hundred in interest but gaining $6k in value.

[hegemony]

"The biggest no-brainer in the history of earth." John Shibley

 

Pay off debt. And you can quote me on that.

one size does not fit all.

[Kevin20]

Probably a bad decision for HIM anyway. All depends on how hot you are. Or at least, how well you cook.

[Operation_Home_Ownership]

IMO, Dont do it!

 

For a few reasons:

1. Paying down the debt puts your family in a MUCH better position

2. Why is she selling at such a discount? Question it

3. Thats HER ring, I am sure you want one that your hubby selects on his own--special to you.

[hegemony]

I didnt think about it that way Hege - So Im losing a few hundred in interest but gaining $6k in value.

exactly.

 

you can probably very easily figure out the exact amount of interest it will cost you. Then you can make an informed decision based on what is best for you and your family.

 

Also, is you aunt willing to accept payments? You could effectively get a zero percent loan from her and put more of the bonus up front on the CC debt.

[Kevin20]

I didnt think about it that way Hege - So Im losing a few hundred in interest but gaining $6k in value.

 

So you're planning to flip the ring, sell it on eBay or something? Good thinking.

 

But otherwise if you plan to, you know, keep it, the ring's market value is meaningless as part of the financial decision. It's pure consumption.

[Guest Bree82]

I didnt think about it that way Hege - So Im losing a few hundred in interest but gaining $6k in value.

 

So you're planning to flip the ring, sell it on eBay or something? Good thinking.

 

But otherwise if you plan to, you know, keep it, the ring's market value is meaningless as part of the financial decision. It's pure consumption.

 

hmmmm....

Edited July 5, 2008 by Bree82

[hegemony]

I didnt think about it that way Hege - So Im losing a few hundred in interest but gaining $6k in value.

 

So you're planning to flip the ring, sell it on eBay or something? Good thinking.

 

But otherwise if you plan to, you know, keep it, the ring's market value is meaningless as part of the financial decision. It's pure consumption.

 

hmmmm....

Bree82, only you and your husband can decide what works best for your family. Life is more than a balance sheet.

[hegemony]

IMO, Dont do it!

 

For a few reasons:

1. Paying down the debt puts your family in a MUCH better position

2. Why is she selling at such a discount? Question it

3. Thats HER ring, I am sure you want one that your hubby selects on his own--special to you.

 

1) a few hundred dollars in interest at most is not a panacea

2) of course an independent appraisal is in order

3) my spouse and I have a ring that was "in the family" because we could not afford our own when we married. Today we could afford a diamond so big to choke a camel, but because of the family connection we have not because the sentimental value is much greater than any expensive ring could replace.

4) one size does not fit all.

[hegemony]

Probably a bad decision for HIM anyway. All depends on how hot you are. Or at least, how well you cook.

how is this relevant?

[Guest Bree82]

Probably a bad decision for HIM anyway. All depends on how hot you are. Or at least, how well you cook.

how is this relevant?

Well, my photos are in the general discussion area if youre that curious...

[Kevin20]

Probably a bad decision for HIM anyway. All depends on how hot you are. Or at least, how well you cook.

how is this relevant?

 

Are you really that much of a moron? It's a joke.

[Guest Bree82]

IMO, Dont do it!

 

For a few reasons:

1. Paying down the debt puts your family in a MUCH better position

2. Why is she selling at such a discount? Question it

3. Thats HER ring, I am sure you want one that your hubby selects on his own--special to you.

 

1) a few hundred dollars in interest at most is not a panacea

2) of course an independent appraisal is in order

3) my spouse and I have a ring that was "in the family" because we could not afford our own when we married. Today we could afford a diamond so big to choke a camel, but because of the family connection we have not because the sentimental value is much greater than any expensive ring could replace.

4) one size does not fit all.

 

It was never her wedding ring, shes never worn it. She bought it for $3k about 10 years ago. She got an appraisal done a few months ago- $9200, its been sitting in her jewelry box since since she bought it. My aunt and uncle are far from hurting for money. Shes offering it to us because she loves me and knows what I went through last year (got married, lost baby, etc) Shes offering it to us for what she paid for it. But, my aunt is interesting. Shes offering it now for $3k but shes kinda schitzo as in if we dont buy now she may not let us buy it OR shell go sell it for the appraisal, etc. I dont understand her sometimes... which is what led me here.

 

If those last couple lines werent a worry wed pay the debt - buy the ring from her later - but with her you just never know....

Edited July 5, 2008 by Bree82

[LKH]

Probably a bad decision for HIM anyway. All depends on how hot you are. Or at least, how well you cook.

 

 

This comment is inappropriate, not relevant and reflects only on you.

[Guest Bree82]

Probably a bad decision for HIM anyway. All depends on how hot you are. Or at least, how well you cook.

how is this relevant?

 

Are you really that much of a moron? It's a joke.

 

No need to be rude. I knew it was a joke.... thats why I told you where the photos were...

[Operation_Home_Ownership]

remember one size does not fit all. the anti-credit types will always parrot "pay off debt" but you need to be more nuanced and not one-dimensional:

 

HEEEEYYYYYYY im not anti-credit!!!

 

I have tons of CCs, just [parrot whistle] pro-cash [parrot whistle] for lux items when there is debt.

[Operation_Home_Ownership]

1) a few hundred dollars in interest at most is not a panacea

2) of course an independent appraisal is in order

3) my spouse and I have a ring that was "in the family" because we could not afford our own when we married. Today we could afford a diamond so big to choke a camel, but because of the family connection we have not because the sentimental value is much greater than any expensive ring could replace.

4) one size does not fit all.

 

If 2 & 3 are followed, then I can see where you are coming from. As an unmarried person, I guess I weigh more on wanting to create my own family legacy hence wanting hubby to be original. OP, if you guys love the ring for those reasons, and it is a smart purchase, I say go for it...bills will always be there!

 

Happy bling! bling!