Ah, July — the height of summer, America’s birthday, and a month in which it’s very possible to spend lots and lots of money. July boasts, among other splurge-able holidays, National Wine and Cheese Day (the 25th) and National Summer Leisure Day (the 22nd), not to mention regularly scheduled events like Independence Day or your annual summer road trip.
While personal loans can be helpful financial tools when taking on expensive projects and adventures, they’re still loans — which is to say, taking them out still means going into debt. We’ve put together some reasons people might turn to personal loans this summer, and offered our best advice as to whether or not it’s actually a solid financial move.
To wipe out credit card debt
Between the gas and accommodations for your road trip, your dinners out with friends (now that so many places are lifting pandemic restrictions), the new swimsuit you needed for your float down the river and so on, it’s very possible to rack up a whole lot of credit card debt in a short while.
If you already have multiple credit cards with running balances, or other forms of debt like short-term unsecured loans, consolidating your debt using a personal loan may be an option worth looking into. Depending on the existing debt you have, a personal loan might carry a lower APR with the added bonus of simplifying your repayment schedule, since you’ll only have to deal with one bill rather than multiple.
However, keep in mind that personal loans are not the only option for debt consolidation, and depending on your circumstances, another might better fit your needs. If your credit isn’t in tip-top shape, your APR might still be on the high end, and if you have bad credit, you might not qualify at all. Other options include a home equity loan, balance transfer credit card, a 401(k) loan or a debt management plan — all of which have their own unique pros and cons.
To get plastic surgery
It might sound extreme, but many people are willing to go under the knife in pursuit of their dreams of enjoying a #hotgirlsummer (or #hotboysummer, for that matter). Although most procedures, per the latest American Society of Plastic Surgeons report, trended down in 2020, it’s probably fair to assume that the downswing was directly related to the coronavirus pandemic — and even so, there were almost 200,000 breast augmentations and 100,000 tummy tucks performed last year.
Given that cosmetic surgery can cost thousands of dollars, and that such elective procedures are not generally covered by basic medical insurance, a personal loan might be the only way for some patients to access these surgeries. However, you should keep in mind that even a low interest rate means you’ll pay more than the sticker price for the procedure if you take out a loan to cover the cost. While a personal loan may have a lower APR than a credit card, that’s not always the case, depending on your credit history. Long story short: if you’re gung-ho on getting work done, paying cash would be ideal. And accepting your body as-is is totally free.
To bedeck your home with new furniture
Now that you’re spending more time outdoors, you may be thinking about a fancy new patio set — or wanting to upgrade your interior furniture from the same-old-same-old you’ve had for years. Indeed, home renovations and redesigns are one of the most popular reasons people take out personal loans in the first place, which makes sense given how expensive decor and home improvement items tend to be and the interest on this option tends to be much less than on your credit card (though it will come with fewer points).
While a personal loan might be a good way to revamp your home, you might actually be able to save a significant amount of cash on your purchases just by waiting until the right time of year. While many furniture dealers offer great sales for the Fourth of July, particularly on outdoor furniture, some reports say that the best months to score deals on furniture of all sorts are February and August, right before newly designed merchandise hits sales floors.
To jet off on an international trip
For many of us, it’s been so long since we’ve been on an airplane that we’re actually eager for the experience — tightly-packed TSA lines, too-small seats and all. Along with being the time when kids are out of school and available to travel with the family, July is also a month with beautiful weather in many popular international destinations — like Paris, where you could experience an epic Bastille Day celebration, for example.
Now that more and more people are vaccinated and taking back to the skies, the artificially low airfare we’ve seen for the past year is beginning to creep back up — not to mention the other costs of travel, such as rental cars, accommodations, food and entertainment. Given their flexibility and unsecured, laissez-faire nature, a personal loan could certainly get you where you’re going, but so could a travel rewards credit card, for example, which may come with extra perks and rewards that make traveling more affordable and convenient.
To attend a summer music festival
For regular summer festival-goers, 2020 was a dark year: the pandemic pulled the plug on so many of America’s biggest multi-day live music events, including Bonnaroo and Electric Daisy Carnival. This year, though, many live shows are back on, and after months of quarantine, people are readier than ever to party.
While music festival tickets aren’t that pricey by themselves, they’re still generally several hundred dollars — and premium packages including hotel accommodations can easily run you a couple thousand. While there’s some wiggle room depending on whether you go bougie with an RV rental or slum it in a tent, there’s no doubt that music festivals are expensive (if incredible) experiences.
Once again, a personal loan might seem like an easy way to foot the bill, but beware the cost you’ll continue to pay in interest over time. After all, by the time 2022 rolls around, you’ll probably be ready to head to another festival. You don’t still want to be paying off last year’s.
Reason for personal loan by state in June 2021
Key Findings
- Southern states like Louisiana, Mississippi and Arkansas were least likely to use funds for credit card refinance and consolidations. Northerners in Rhode Island, New Hampshire and Massachusetts were the most.
- Georgians were more likely than anyone else in the country to use a personal loan for business expenses.
- Cornhuskers in Nebraska are more likely to use a personal loan for medical expenses than a major purchase, a home improvement, vacation or wedding.
Alabama
Card Refinancing & Debt Consolidation 33%
Major Purchase 6%
Home Improvement 8%
Vacation & Wedding Expenses 2%
Business Expenses 7%
Home & Auto Financing 10%
Medical Expenses 5%
Moving & Relocation 4%
Other 26%
Alaska
Card Refinancing & Debt Consolidation 33%
Major Purchase 9%
Home Improvement 6%
Vacation & Wedding Expenses 2%
Business Expenses 4%
Home & Auto Financing 10%
Medical Expenses 3%
Moving & Relocation 5%
Other 28%
Arizona
Card Refinancing & Debt Consolidation 37%
Major Purchase 6%
Home Improvement 5%
Vacation & Wedding Expenses 1%
Business Expenses 5%
Home & Auto Financing 9%
Medical Expenses 5%
Moving & Relocation 5%
Other 27%
Arkansas
Card Refinancing & Debt Consolidation 30%
Major Purchase 6%
Home Improvement 7%
Vacation & Wedding Expenses 1%
Business Expenses 7%
Home & Auto Financing 11%
Medical Expenses 4%
Moving & Relocation 5%
Other 29%
California
Card Refinancing & Debt Consolidation 37%
Major Purchase 6%
Home Improvement 4%
Vacation & Wedding Expenses 1%
Business Expenses 6%
Home & Auto Financing 9%
Medical Expenses 5%
Moving & Relocation 5%
Other 27%
Colorado
Card Refinancing & Debt Consolidation 40%
Major Purchase 7%
Home Improvement 4%
Vacation & Wedding Expenses 1%
Business Expenses 4%
Home & Auto Financing 10%
Medical Expenses 5%
Moving & Relocation 5%
Other 25%
Connecticut
Card Refinancing & Debt Consolidation 43%
Major Purchase 5%
Home Improvement 5%
Vacation & Wedding Expenses 2%
Business Expenses 4%
Home & Auto Financing 9%
Medical Expenses 4%
Moving & Relocation 4%
Other 24%
Delaware
Card Refinancing & Debt Consolidation 41%
Major Purchase 5%
Home Improvement 7%
Vacation & Wedding Expenses 1%
Business Expenses 5%
Home & Auto Financing 8%
Medical Expenses 4%
Moving & Relocation 5%
Other 24%
Florida
Card Refinancing & Debt Consolidation 37%
Major Purchase 5%
Home Improvement 6%
Vacation & Wedding Expenses 1%
Business Expenses 6%
Home & Auto Financing 9%
Medical Expenses 5%
Moving & Relocation 5%
Other 25%
Georgia
Card Refinancing & Debt Consolidation 33%
Major Purchase 5%
Home Improvement 6%
Vacation & Wedding Expenses 2%
Business Expenses 9%
Home & Auto Financing 10%
Medical Expenses 5%
Moving & Relocation 5%
Other 25%
Hawaii
Card Refinancing & Debt Consolidation 41%
Major Purchase 5%
Home Improvement 4%
Vacation & Wedding Expenses 3%
Business Expenses 4%
Home & Auto Financing 9%
Medical Expenses 4%
Moving & Relocation 3%
Other 28%
Idaho
Card Refinancing & Debt Consolidation 38%
Major Purchase 8%
Home Improvement 4%
Vacation & Wedding Expenses 1%
Business Expenses 4%
Home & Auto Financing 9%
Medical Expenses 5%
Moving & Relocation 6%
Other 25%
Illinois
Card Refinancing & Debt Consolidation 38%
Major Purchase 5%
Home Improvement 6%
Vacation & Wedding Expenses 2%
Business Expenses 7%
Home & Auto Financing 9%
Medical Expenses 5%
Moving & Relocation 4%
Other 25%
Indiana
Card Refinancing & Debt Consolidation 34%
Major Purchase 6%
Home Improvement 6%
Vacation & Wedding Expenses 1%
Business Expenses 5%
Home & Auto Financing 11%
Medical Expenses 4%
Moving & Relocation 5%
Other 27%
Iowa
Card Refinancing & Debt Consolidation 35%
Major Purchase 7%
Home Improvement 6%
Vacation & Wedding Expenses 2%
Business Expenses 4%
Home & Auto Financing 11%
Medical Expenses 4%
Moving & Relocation 5%
Other 27%
Kansas
Card Refinancing & Debt Consolidation 38%
Major Purchase 6%
Home Improvement 6%
Vacation & Wedding Expenses 1%
Business Expenses 4%
Home & Auto Financing 9%
Medical Expenses 6%
Moving & Relocation 4%
Other 26%
Kentucky
Card Refinancing & Debt Consolidation 32%
Major Purchase 7%
Home Improvement 7%
Vacation & Wedding Expenses 2%
Business Expenses 4%
Home & Auto Financing 11%
Medical Expenses 5%
Moving & Relocation 5%
Other 29%
Louisiana
Card Refinancing & Debt Consolidation 28%
Major Purchase 6%
Home Improvement 8%
Vacation & Wedding Expenses 2%
Business Expenses 8%
Home & Auto Financing 11%
Medical Expenses 5%
Moving & Relocation 5%
Other 28%
Maine
Card Refinancing & Debt Consolidation 40%
Major Purchase 7%
Home Improvement 6%
Vacation & Wedding Expenses 1%
Business Expenses 3%
Home & Auto Financing 10%
Medical Expenses 4%
Moving & Relocation 4%
Other 25%
Maryland
Card Refinancing & Debt Consolidation 38%
Major Purchase 5%
Home Improvement 6%
Vacation & Wedding Expenses 2%
Business Expenses 6%
Home & Auto Financing 8%
Medical Expenses 5%
Moving & Relocation 5%
Other 26%
Massachusetts
Card Refinancing & Debt Consolidation 45%
Major Purchase 5%
Home Improvement 5%
Vacation & Wedding Expenses 2%
Business Expenses 4%
Home & Auto Financing 9%
Medical Expenses 4%
Moving & Relocation 4%
Other 23%
Michigan
Card Refinancing & Debt Consolidation 34%
Major Purchase 7%
Home Improvement 7%
Vacation & Wedding Expenses 2%
Business Expenses 6%
Home & Auto Financing 11%
Medical Expenses 4%
Moving & Relocation 4%
Other 25%
Minnesota
Card Refinancing & Debt Consolidation 39%
Major Purchase 7%
Home Improvement 5%
Vacation & Wedding Expenses 2%
Business Expenses 5%
Home & Auto Financing 9%
Medical Expenses 5%
Moving & Relocation 4%
Other 26%
Mississippi
Card Refinancing & Debt Consolidation 29%
Major Purchase 6%
Home Improvement 8%
Vacation & Wedding Expenses 2%
Business Expenses 8%
Home & Auto Financing 12%
Medical Expenses 5%
Moving & Relocation 4%
Other 27%
Missouri
Card Refinancing & Debt Consolidation 33%
Major Purchase 6%
Home Improvement 6%
Vacation & Wedding Expenses 2%
Business Expenses 4%
Home & Auto Financing 11%
Medical Expenses 5%
Moving & Relocation 5%
Other 28%
Montana
Card Refinancing & Debt Consolidation 35%
Major Purchase 8%
Home Improvement 5%
Vacation & Wedding Expenses 1%
Business Expenses 4%
Home & Auto Financing 12%
Medical Expenses 5%
Moving & Relocation 5%
Other 25%
Nebraska
Card Refinancing & Debt Consolidation 38%
Major Purchase 6%
Home Improvement 6%
Vacation & Wedding Expenses 2%
Business Expenses 3%
Home & Auto Financing 10%
Medical Expenses 7%
Moving & Relocation 4%
Other 26%
Nevada
Card Refinancing & Debt Consolidation 38%
Major Purchase 5%
Home Improvement 5%
Vacation & Wedding Expenses 2%
Business Expenses 7%
Home & Auto Financing 9%
Medical Expenses 5%
Moving & Relocation 6%
Other 24%
New Hampshire
Card Refinancing & Debt Consolidation 45%
Major Purchase 7%
Home Improvement 6%
Vacation & Wedding Expenses 1%
Business Expenses 2%
Home & Auto Financing 8%
Medical Expenses 4%
Moving & Relocation 4%
Other 23%
New Jersey
Card Refinancing & Debt Consolidation 44%
Major Purchase 5%
Home Improvement 6%
Vacation & Wedding Expenses 2%
Business Expenses 5%
Home & Auto Financing 9%
Medical Expenses 4%
Moving & Relocation 4%
Other 23%
New Mexico
Card Refinancing & Debt Consolidation 33%
Major Purchase 7%
Home Improvement 7%
Vacation & Wedding Expenses 2%
Business Expenses 4%
Home & Auto Financing 10%
Medical Expenses 5%
Moving & Relocation 4%
Other 29%
New York
Card Refinancing & Debt Consolidation 39%
Major Purchase 5%
Home Improvement 6%
Vacation & Wedding Expenses 2%
Business Expenses 6%
Home & Auto Financing 8%
Medical Expenses 4%
Moving & Relocation 5%
Other 25%
North Carolina
Card Refinancing & Debt Consolidation 35%
Major Purchase 6%
Home Improvement 6%
Vacation & Wedding Expenses 2%
Business Expenses 5%
Home & Auto Financing 10%
Medical Expenses 5%
Moving & Relocation 5%
Other 26%
North Dakota
Card Refinancing & Debt Consolidation 43%
Major Purchase 5%
Home Improvement 4%
Vacation & Wedding Expenses 1%
Business Expenses 3%
Home & Auto Financing 8%
Medical Expenses 4%
Moving & Relocation 5%
Other 27%
Ohio
Card Refinancing & Debt Consolidation 35%
Major Purchase 6%
Home Improvement 7%
Vacation & Wedding Expenses 2%
Business Expenses 5%
Home & Auto Financing 10%
Medical Expenses 4%
Moving & Relocation 4%
Other 26%
Oklahoma
Card Refinancing & Debt Consolidation 33%
Major Purchase 6%
Home Improvement 6%
Vacation & Wedding Expenses 1%
Business Expenses 5%
Home & Auto Financing 11%
Medical Expenses 5%
Moving & Relocation 5%
Other 28%
Oregon
Card Refinancing & Debt Consolidation 40%
Major Purchase 7%
Home Improvement 4%
Vacation & Wedding Expenses 2%
Business Expenses 4%
Home & Auto Financing 8%
Medical Expenses 4%
Moving & Relocation 6%
Other 25%
Pennsylvania
Card Refinancing & Debt Consolidation 37%
Major Purchase 6%
Home Improvement 7%
Vacation & Wedding Expenses 1%
Business Expenses 5%
Home & Auto Financing 11%
Medical Expenses 4%
Moving & Relocation 4%
Other 25%
Rhode Island
Card Refinancing & Debt Consolidation 45%
Major Purchase 5%
Home Improvement 5%
Vacation & Wedding Expenses 2%
Business Expenses 4%
Home & Auto Financing 9%
Medical Expenses 4%
Moving & Relocation 4%
Other 23%
South Carolina
Card Refinancing & Debt Consolidation 36%
Major Purchase 5%
Home Improvement 7%
Vacation & Wedding Expenses 2%
Business Expenses 6%
Home & Auto Financing 10%
Medical Expenses 5%
Moving & Relocation 5%
Other 25%
South Dakota
Card Refinancing & Debt Consolidation 38%
Major Purchase 5%
Home Improvement 6%
Vacation & Wedding Expenses 1%
Business Expenses 4%
Home & Auto Financing 8%
Medical Expenses 6%
Moving & Relocation 4%
Other 29%
Tennessee
Card Refinancing & Debt Consolidation 34%
Major Purchase 6%
Home Improvement 6%
Vacation & Wedding Expenses 2%
Business Expenses 5%
Home & Auto Financing 10%
Medical Expenses 5%
Moving & Relocation 5%
Other 28%
Texas
Card Refinancing & Debt Consolidation 36%
Major Purchase 6%
Home Improvement 6%
Vacation & Wedding Expenses 2%
Business Expenses 6%
Home & Auto Financing 9%
Medical Expenses 6%
Moving & Relocation 4%
Other 26%
Utah
Card Refinancing & Debt Consolidation 41%
Major Purchase 5%
Home Improvement 4%
Vacation & Wedding Expenses 1%
Business Expenses 3%
Home & Auto Financing 9%
Medical Expenses 6%
Moving & Relocation 4%
Other 27%
Vermont
Card Refinancing & Debt Consolidation 40%
Major Purchase 7%
Home Improvement 5%
Vacation & Wedding Expenses 2%
Business Expenses 4%
Home & Auto Financing 12%
Medical Expenses 3%
Moving & Relocation 5%
Other 24%
Virginia
Card Refinancing & Debt Consolidation 38%
Major Purchase 6%
Home Improvement 6%
Vacation & Wedding Expenses 2%
Business Expenses 5%
Home & Auto Financing 8%
Medical Expenses 5%
Moving & Relocation 5%
Other 27%
Washington
Card Refinancing & Debt Consolidation 41%
Major Purchase 6%
Home Improvement 4%
Vacation & Wedding Expenses 2%
Business Expenses 4%
Home & Auto Financing 8%
Medical Expenses 5%
Moving & Relocation 5%
Other 26%
Washington District of Columbia
Card Refinancing & Debt Consolidation 33%
Major Purchase 6%
Home Improvement 4%
Vacation & Wedding Expenses 2%
Business Expenses 8%
Home & Auto Financing 8%
Medical Expenses 5%
Moving & Relocation 6%
Other 27%
West Virginia
Card Refinancing & Debt Consolidation 32%
Major Purchase 6%
Home Improvement 9%
Vacation & Wedding Expenses 2%
Business Expenses 3%
Home & Auto Financing 12%
Medical Expenses 3%
Moving & Relocation 4%
Other 29%
Wisconsin
Card Refinancing & Debt Consolidation 37%
Major Purchase 6%
Home Improvement 5%
Vacation & Wedding Expenses 2%
Business Expenses 5%
Home & Auto Financing 10%
Medical Expenses 5%
Moving & Relocation 5%
Other 26%
Wyoming
Card Refinancing & Debt Consolidation 41%
Major Purchase 8%
Home Improvement 5%
Vacation & Wedding Expenses 1%
Business Expenses 3%
Home & Auto Financing 10%
Medical Expenses 5%
Moving & Relocation 4%
Other 23%
This article was produced by LendingTree.com exclusively for MediaFeed.org.
