Engagement rings 'should not cost the earth to finance'

By Sarah Engle, Tue 9 Feb 2010 - Published in Loans

Romantic souls thinking of proposing on Valentine's Day should not pay over the odds if purchasing the ring with a personal loan, according to an expert.

Andrew Hagger, communications manager with Moneynet.co.uk, pointed out that engagement rings are expensive items, which could lead many people to consider paying for them with credit.

"The smartest financing option is to buy the ring on your credit card and apply for a balance transfer card now so you can switch the balance across to an interest free deal when your statement comes through," he explained.

Mr Hagger also noted that some people may be thinking of taking out a personal loan to cover the cost of the ring, but added that these tend to attract high rates of interest when for small amounts.

The expert added that people who have a poor credit rating could find they automatically incur a high interest rate, as financial providers have tightened their lending criteria.

A report from insurer Sheilas' Wheels recently recommended that people ensure any romantic jewellery they receive or give this February 14th is covered by their home insurance policy.

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