When the most wonderful time of the year winds up being the most expensive, too, you might be tempted to take out a personal loan this holiday season. Everyone needs a loan at some point to help smooth over financial speed bumps, but are the holidays worth the trouble? 

If you take the season seriously, anything standing in the way of your festivities may feel like an emergency, but few things actually fit this description. If you aren’t sure where to draw the line, check in with this quick list for guidance. 

Suitable Reasons to Borrow Money

There’s a time and place when it might make sense to take out an online loan or line of credit. Here are some of them below.

Repairing an Essential Appliance

Furnace on the fritz? Water heater not doing its job? Oven failing days before the big feast? 

Living without heat might put your life at risk, so it’s crucial you get this appliance repaired right away, even if you don’t have the savings to afford a technician. This might be a time when you want to learn about your borrowing options online, including installment loans and lines of credit.

Addressing Unexpected Car Trouble

If you need your car to get to work or attend important appointments, unexpected car trouble could cost you lost wages or late fines. While you should set aside some money each month on maintenance, you might fall short of what you need in an emergency. An online installment loan can help you repair your vehicle so that you don’t miss any work.

Handling Unforeseen Medical Expenses

Let’s say you accidentally cut yourself bad enough to get stitches while carving the turkey. You may need to take out an installment loan to cover this expense — whether you’re stuck paying out of pocket or covering a deductible. 

Bad Reasons to Borrow

When your life isn’t on the line, you might want to think twice about borrowing money. 

Replacing a Gift Stolen by a Porch Pirate

If someone steals a parcel off your porch, don’t borrow to replace the item. First get in touch with the retailer to see how they intend to handle it. If the retailer won’t resend the package, reach out to the shipping company and your credit card company to see if they’ll refund the purchase. 

Curating a Perfect Holiday

Pulling out all the stops for your holiday is never an excuse to borrow money. You can still celebrate on a budget as long as you’re willing to be creative. Scale back your expectations. Switch gears to move away from expensive gifts and celebrate by focusing on creating memorable moments with your family. 

Travelling to Visit Family

If you missed last year’s Christmas because of lockdowns, you might be tempted to hop on a plane this year to make up for lost time. But if you need to take out a loan online to afford a flight — or you can’t pay off your line of credit by your next billing statement — it’s not worth it. 

Can You See the Difference?

Borrowing money only makes sense when you have no other options. And when it comes to holiday travel and spending, it’s almost always a choice to overindulge. To keep your finances safe this Christmas, make sure you keep an online loan as an emergency backup.