Summer expenses are usually higher than normal for many reasons. First, this is when most people take their vacation. Second, it is also the most common time for people to get married. Thirdly, when the weather is warm you are also more likely to jump into home renovations or repairs.

While summer can be an exiting time to throw a little cash around, it can also be when your finances are under considerable strain. Not surprisingly, this may mean that you are considering whether or not you should borrow for summer expenses. Luckily, the information below could help you decide.

Finally, if you decide you want to borrow for summer expenses, you will also want to know the best way to finance your summer expenses. Personal loans, credit cards, and other forms of credit all have pros and cons and you’ll want to choose what best suits your financial situation and your lifestyle.

When Borrowing for Summer Expenses Can Make Sense

Clearly, it wouldn’t make any sense to borrow for everything you’re doing this summer. That would lead to a lot of debt that you would have to repay with interest. That’s on top of any everyday expenses you already have.

So, how do you decide whether you should borrow for summer expenses? It really is up to you, but the following guidelines might help.

Paying for Major Items

If you don’t want to liquidate your savings, you may need to borrow for summer expenses. Still, you shouldn’t use credit for small expenses. These can add up quickly and you may not have any idea of how much you owe.

Instead, plan your buys and only borrow when you need to make large, necessary purchases. Here are some examples when borrowing for summer expenses can make sense.

Paying for a Wedding & Honeymoon

If you’re getting married and you need a wad of cash, borrowing can be a good option. Take out a personal loan, create a budget, and limit your spending to a set amount. This is far better than slapping everything on a credit card and losing track of how much your wedding is actually costing you. Plus, the interest rate on most personal loans is far lower than a credit card.

Of course, wedding expenses can also include a honeymoon. You may need to pay for flights upfront, put a deposit on your hotel suite, and pay for excursions to make it a magical event. If you’re planning a destination wedding, your summer expenses will be even higher.

You may be tempted to use a credit card so you can earn rewards, but beware. Unless you pay off the balance in full when you receive your next statement, the compounded interest will probably outweigh any rewards benefit you would earn. This can lead to unnecessarily higher summer expenses. An installment loan offers a lump sum amount and the freedom to choose your repayment terms too.

If you’re still leaning towards using a credit card, check out this first. Compare the simple interest charged on a personal installment loan and the compound interest on a credit card here. You might be in for a shock.

Buying a Vehicle

If you don’t have a decent vehicle in the summer, it can be a real drag. How are you going to get to the beach, mountains, or that holiday destination? So, how are you going to get one to make sure you enjoy this summer? You have a couple of options.

First, you can save up and buy a vehicle with cash. The problem is you probably want your vehicle now, so that’s not a viable option.

Second, you can apply for an auto loan, but you will still need a down payment. Plus, the lender will put a lien on your vehicle, so it isn’t yours to do with as you want until you pay off the loan.

Finally, you can apply for a personal installment loan for summer expenses like buying a car. Here’s why that can make sense:

No deposit or down payment – You can borrow 100% of what you need.

You own your vehicle outright – There’s no lien on your vehicle and you can sell it whenever you want.

Can build your credit – Making timely payments on a personal installment loam can help you build your credit and diversify your credit mix.

Doing Home Improvements, Repairs, and Renovations

Once again, you may want to borrow for summer expenses such as home repairs, renovation, and improvements. These are usually big ticket expenses that most people can’t afford to pay for without financing. Luckily, borrowing can be very worthwhile in certain cases.

Boost property value – The cost of borrowing can easily be recouped when it increases the value of your property.

ROI on some changes may pay for your loan – Some renovations can increase your property value drastically, which can completely eliminate your loan amount when you sell.

Can pay off quickly – You choose your loan term and a good installment loan lets you repay more without penalty.

Accelerate sale – If you’re selling your home you can do needed repairs and improvements for a faster sale.

Cover Unexpected Expenses

Emergencies and unexpected expenses are also often good reasons to borrow. You may not want to drain your bank account or you may not have enough money to cover everything.

Examples of summer expenses that may justify borrowing include a medical emergency, an urgent fix at home, or a quick car repair. Perhaps your air conditioning unit quit on one of the hottest days of the year. Maybe the car you use to get to work left you stranded without notice.

Whatever the case, borrowing can help you avoid financial hardship while letting you deal with your urgent situation.

When Borrowing for Summer Expenses Probably Doesn’t Make Sense

Naturally, there are times when you shouldn’t borrow for summer expenses. The following are the major reasons that should give you pause if you’re considering borrowing.

Buying Luxury Items You Can’t Afford

Sure, that shiny boat and that luxury vacation look great. The problem is that they cost a lot and you probably don’t have the money to pay for them in cash. That means you have to borrow to get things that you don’t really need. Add the additional cost of a loan or credit card payments and you could quickly be drowning in debt.

Taking on Long-Term Debt for a Little Fun

Sometimes you may want to splurge on summer expenses that give you enjoyment in the moment. Examples include paying for expensive festival tickets on your credit card or booking costly excursions to make you feel like you’re really having a great summer. The problem with this kind of spending is your seasonal spend can lead to your debt carrying over many months. The burden of this debt can quickly overshadow any fun you had during the summer.

Ignoring How Much Your Summer Expenses Are Really Costing You

Many people don’t look too carefully at how much borrowing to buy is actually costing them. It is so “easy” to pay later so they ignore the interest and fees that are tacked on. Next thing they know their debt is much higher than they anticipated.

Even when you’re considering buying something advertised at 0% you can’t afford to take that at face value. It may be a promotion with an introductory interest rate that increases after a set period. Don’t borrow unless you know how much it will really cost you.

Borrowing Without a Repayment Plan

Sure, you can probably borrow for summer expenses easily. Still, have you thought about how you are going to repay what you owe? If not, this can quickly lead to financial instability.

Don’t borrow now and think that you’ll figure it out later. You need a repayment plan to be certain that you aren’t creating financial problems that you’ll have to deal with for years.

Questions to Ask Yourself If You Want to Borrow for Summer Expenses

Before you decide to borrow, ask yourself the following questions. Your answers could be the deciding factor.

Do you really need to borrow?

Even if you can borrow money for summer expenses, it doesn’t mean you should. Look at your income, savings, and financial goals. If you can stretch yourself without borrowing, it could be your best bet.

Will your debt provide long-term benefit or short-term fun?

Borrowing to buy a car benefits you for a long time. Borrowing for a luxury vacation only gives you a short-term boost. This doesn’t mean you can’t do it – just consider whether your quick pleasure justifies the time it will take to repay what you owe.

Have you checked the fine print?

That deal on that boat looks great, but did you realize the interest rate goes up in a year making the cost far higher than other borrowing options? Oh, and did the retailer mention that there is also a penalty if you want to pay more than your scheduled payments? Probably not.

Do you have a repayment plan?

Before you charge or sign loan papers, sit down and plan out how you can repay what you owe. A simple budgeting app can help you do this in minutes.

FlexMoney Offers Borrowing Options for Summer Expenses

Clearly, your best option is often to save for whatever summer expenses you may have. However, it can make sense to borrow when you’re making a large purchase, you have an immediate need, or you plan your purchase.

Luckily, FlexMoney can help you as a responsible, fast option for short-term financial needs. We offer instant approval installment loans from a network of reputable U.S. lenders. Loans range between $200 and $35,000.

Our network welcomes applicants with low credit scores, little credit history, and alternative income sources. Our applications process is safe and easy and the best way to check what’s available to you in minutes, without lowering your credit scores.

Just fill out one application form and we’ll find the most suitable lenders for your needs. They’ll connect with you and show you what they have to offer. Compare interest rates and terms to find the best online loans available to you in just a few minutes. Apply today and get the money you need for summer expenses in a flash.