7 Things You Should Never Finance (No Matter How Tempting)

Financing everyday expenses like your morning coffee, lunch out with coworkers, or that quick grocery run might feel harmless at the moment, but it’s a financial habit that can quickly spiral. When you put small, routine purchases on a credit card and don’t pay them off immediately, they start to grow, thanks to interest. Before you know it, that $5 latte turns into $7, and your $15 salad at lunch costs closer to $20.

Everyday expenses are meant to be covered by your income, not borrowed money. Financing these costs, whether through a credit card or payday loans, is like trying to fill a bucket with a hole in it—you’re constantly playing catch-up. If your paycheck isn’t stretching far enough, it’s time to rework your budget, and not lean on debt. Brew coffee at home, pack a lunch and look for ways to cut back without relying on credit. Saving now means avoiding the financial hangover later.

A former colleague of mine had a habit of taking lavish vacations every summer, regardless of whether she could afford them. One year, she splurged on an $8,000 trip to the Maldives, complete with overwater villas, fine dining, and private excursions. Without enough savings, she put the entire trip on her credit card. With an average APR of 20%, and making only minimum monthly payments of around $250, it would have taken her nearly 5 years to pay it off—during which time she would have paid over $4,800 in interest, making the trip cost nearly $13,000 in total.

The kicker? This wasn’t a one-time thing. Every year, she’d book another expensive getaway on credit, effectively carrying debt from one trip to the next. Instead of relaxing on vacation, she was constantly playing catch-up, paying thousands more than the original cost of the trips. Financing vacations might buy you a dream experience in the moment, but the debt can turn into a nightmare that follows you for years. Save up for your travels instead—it’s worth the wait to enjoy your trips without the financial hangover.

This one might be controversial, but financing a wedding is rarely worth it. While a lavish ceremony and reception can create incredible memories, the reality of starting married life with debt for a single day’s event can lead to long-term financial strain. According to The Knot, the average wedding in the U.S. cost $30,000 in 2023—and with many couples turning to loans or credit cards to cover costs, those big days often come with an even bigger price tag over time.

Here’s the problem: Financing a $30,000 wedding with a credit card at a 20% APR and making only minimum payments of $750/month would take over 5 years to pay off and cost an additional $17,000 in interest. That $30,000-day balloons to $47,000—and that’s before factoring in other life expenses like buying a home or starting a family. Instead of risking financial security for one day, consider scaling back, saving up, or finding creative ways to cut costs. Your marriage matters far more than the flowers, venue, or an open bar.

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A few years ago, I missed out on a designer bag I’d been eyeing when it went on sale. I couldn’t stop thinking about it, so I made an impulsive decision: I bought it at full price for $990 using a “buy now, pay later” financing deal that gave me 12 months to pay it off interest-free. It felt like the perfect compromise. I’d get the bag I wanted and could spread out the payments without any extra cost. Or so I thought.

When the 12 months were up, I hadn’t paid off the full balance. That’s when the deferred interest kicked in at a staggering 35%. Suddenly, I owed an additional $346 in interest, turning my $990 splurge into a $1,336 financial regret. What was once a great luxury gift to myself became a headache and a reminder that financing luxury goods is rarely worth it. The lesson? If you can’t pay for it outright, it’s better to wait. The excitement of the purchase fades fast (trust me), but the debt and the regret stick around much longer.

A friend of mine has a deep love for antiques, and when he found an antique Carver chair for his office, he just had to have it. The chair was beautiful, with all the charm of a bygone era but it came with a $2,800 price tag. Instead of waiting to save up, he jumped on a financing deal and took it home, thrilled.

The honeymoon didn’t last. I found out several weeks later that while leaning back in the chair, he accidentally cracked part of the backrest. Repairing it cost him $1,200 and ultimately reduced the value of the chair if he ever went to sell on. By the time he factored in the cost of restoration and the remaining financed balance, the chair had turned into a very expensive mistake. The moral of the story? If there’s even a chance that what you’re buying could get damaged, especially if you have kids, pets, or a tendency to overestimate how careful you’ll be, financing furniture is a risk.

Starting a new hobby can be exciting, but financing the tools and equipment to pursue it is often a financial misstep. According to a 2022 survey by Statista, Americans spend an average of $867 per year on hobbies, with many shelling out significantly more for high-ticket items like musical instruments, sporting gear, or photography equipment. While these purchases may feel justified at the time, interest can fade quickly, leaving you with unused items and lingering debt. 

Consider this: financing a $1,500 camera setup with a credit card at a 20% APR and paying $50 a month would take nearly four years to pay off and cost an additional $675 in interest. By the time the debt is cleared, your passion for photography might have waned, and the gear could be sitting in a closet gathering dust (like what happened with me and my expensive camera). Whether it’s crafting tools, expensive fitness equipment, or a musical instrument, hobbies should enhance your life, not complicate your finances. Save up for the tools you need so you can fully enjoy the experience without the burden of debt.

Cosmetic procedures, from elective surgeries to dental veneers, are often marketed as life-changing investments in confidence. But financing these enhancements can turn what might be a temporary boost in self-esteem into a long-term financial burden. According to the American Society of Plastic Surgeons, the average cost of a rhinoplasty (nose job) in the U.S. was $5,483 in 2023, while dental veneers typically range from $250 to $2,500 per tooth. Many individuals finance these costs through medical credit cards or personal loans with interest rates often exceeding 20%.

For example, financing a $10,000 cosmetic surgery at a 20% APR and making $250 monthly payments would take nearly 5 years to pay off, with more than $5,900 in interest added to the total cost. That $10,000 procedure suddenly costs close to $16,000. Unlike investments in your health or education, cosmetic procedures are typically non-essential, making them a risky expense to finance. If a procedure feels important, the smarter financial approach is to save up and pay in cash to avoid the high cost of interest. After all, confidence doesn’t come with a price tag—but debt certainly does.

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