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Things You Should Never Finance

By , January 21st, 2016 | 2 Comments »

Things You Shouldn't Finance

Renting has become a pretty commonplace thing, especially since the economy tanked a few years back. However, many people have taken to renting literally everything they can get their hands on. There are a few things you just should not finance.

Rent to Own Furniture

When money is tight, sometimes it seem like financing a purchase is the best option. While certain things, such as houses or cars, are okay to finance, there are a lot of items that you should avoid financing. You might be surprised by the items some people choose to finance.

One of the worse financing decisions is rent to own furniture. Loan interest rates are already at a historic high, but rent to own companies such as Rent-A-Center sometimes triple a normal credit card’s interest rate. Why would you want to pay a 60% APR rate for rented furniture compared to the 20% or lower rate you might have with your credit card company?

Rent to Own Appliances

As with furniture, rent to own appliances are often a bad idea. Many places that offer rent to own appliances not only raise the price of the original item, but hit you with high interest rates. Sometimes these interest rates are 100% or higher. Why would you want to pay that? Rent to own stores seem like a great deal. You get to buy the item for what seems like a better price upfront, but you’re spending more than twice what you would if you had bought the item at a normal store.


Do you desperately need a new computer, but are worried about paying for it? Most computer manufacturers offer financing when you purchase a new computer, but you should avoid taking this offer. When you finance a computer, you end up paying much more than the computer is actually worth. You’re put on a payment plan that usually has very strict rules, such as having to pay in full if you make one late payment. Sometimes, depending on the company and the fine print, you’re not even insured for the product if something happens before you pay off the balance.


You should never finance a vacation! While vacations are wonderful to experience and something everyone should take advantage of, it’s definitely not something you should finance. There are some travel companies or deal sites who might offer financing if you book with them, but their rates are extreme. If you can’t pay upfront, maybe you should think about a different vacation destination.


We all know that weddings seem to cost more and more each year. Sometimes this is because the bride or groom has extravagant tastes and sometimes it’s merely because the vendors charge high fees. No matter how much you want your dream wedding, think twice before financing it. It might seem great at the moment, but you’ll be paying those bills for a long time. Is it really worth it to spend years paying off a one day event?


If you’re financing a ridiculously expensive piece of clothing, you should think twice about actually purchasing it. A lot of us want and like nice things, but it’s unreasonable to borrow money you don’t have – and might not be able to pay back – for one piece of designer clothing. Besides, interest rates from clothing boutiques or retailers are usually much higher than regular bank loans or credit card interest rates.

Christmas or Birthday Presents

When Christmas or someone’s birthday rolls around, you might have the perfect gift in mind. But should you really take out a loan or finance that item? Seeing a look of surprise or pleasure on the recipient’s face might make you happy, but your bank account isn’t going to be happy a couple months down the road. There are some lenders who will help you “finance” your money around Christmas, but their rates are usually unreasonably high.


You would be surprised by how many people want to finance a pet. If you do a quick search on Google, there are so many people wondering how or where to finance a dog. A pet is a living being, not a car or house! Financing a pet is not only a bad investment, but is it also questionable from a dollars and sense standpoint! If you can’t afford to buy a pet upfront, you should think twice about actually getting one.


A lot of people tend to worry about paying for a new mattress, and with good reason since they can be expensive! But be careful before financing a mattress. Sometimes retailers will mark up the price of their mattresses for people who do finance. You never want to skimp out on a mattress, but there are definitely stores that offer cheaper mattress that will cost you less than financing would.

Unnecessary Medical Procedures

Financing necessary medical procedures and medicine is completely reasonable if they’re going to improve your quality of life. But think twice before financing plastic surgery for cosmetic reasons. A lot of men and women undergo medical procedures for vanity reasons and if you can’t truly afford it, even after financing, then you’re going to find yourself with a stick financial situation.

Photo: Flickr: Tax Credits

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