Almost half of Brits proposing to their lover will get into debt to pay for their engagement ring, according to new national research* ahead of Valentine’s Day on Friday.
But, one in five of people will subsequently take between 2 – 5 years to pay off the cost of that engagement ring, according to the nationwide study by financial comparison site money.co.uk today.
More than a third of those who have been engaged regret how much they spent on an engagement ring and admit they wish they’d spent less on it. Millennials were especially regretful – with more than half saying they spent too much on their engagement ring.
Salman Haqqi, money.co.uk personal finance expert, said: “Our research shows that the average amount of debt Brits incur buying an engagement ring is around £6,300, around 2.6 times the average monthly salary – an eye watering sum if you are getting into debt to pay for it.
“Spending outside of your means, even with the most romantic intentions, can lead to future financial difficulties that you should try to avoid. When it comes to the cost, the head should always lead the heart, so make sure you budget for your new bling and don’t let the seductive sparkle impact your spending.”
Surprisingly, the younger people are when they propose, the more debt they seem to get into. Gen Z (born after 1995) are the most extravagant incurring a debt of around £7,700 for the purchase of their engagement ring, while those aged 55 and over incur a debt of around £5,100.
To help romantics plan their spending, money.co.uk has created a special engagement ring cost calculator, designed to give people an accurate indication of how much they can afford to spend on an engagement ring.
Salman Haqqi, explaining how the new calculator works, said: “It asks a few simple questions about people’s age, how long they’ve been engaged, their job, salary, and monthly outgoings to deliver users a personalised engagement ring cost in just a few minutes.
“We know that money can’t buy you love but, if you’re not careful, love can cost you far more than it needs to. Our engagement ring cost calculator can help you plan your finances properly and ensure you buy a ring that matches your personal financial situation.”
So, what should an engagement ring cost those planning to propose in 2020?
The money.co.uk statistics show that 1 in 10 Brits believe they should spend around double their monthly salary on a ring to propose to their partner.
More than half of couples will choose a classic off-the-shelf diamond engagement ring to celebrate their engagement, the survey reveals. Though 14% will have a bespoke diamond ring made especially for their engagement.