Can You Use a Personal Loan to Go to a Music Festival?
A music festival might be a once-in-a-lifetime experience, but the price tag is usually steep. One way to pay your way is with a personal loan — just be careful not to borrow more than what you can afford to repay just for a single weekend or week of fun.
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There’s a good chance you’ve seen music festival footage online — or even in a friend’s Instagram feed — and had major FOMO. Who wouldn’t? Attending an event like Coachella, Lollapalooza, SXSW, or Bonnaroo would be a once-in-a-lifetime experience.
But how are you going to pay for it? Getting a four-night camping package for a site near Coachella, including festival passes for two people, costs close to $1,000. And if you want to camp on-site, stay in a hotel, splurge on VIP tickets, and enjoy access a shuttle, you could easily spend more than $4,000 for three or four nights.
Putting thousands of dollars on your credit card could get a little pricey, once you factor in the interest charges you’ll face over time. When you stop and think about it, it might make more sense to get a personal loan to pay for your music festival accommodations. But before you go into debt to have an amazing Lollapalooza or SXSW experience, here’s what you need to know.
On this page:
- Possible Uses of Personal Loans
- Benefits of Using Personal Loans to Go to a Music Festival
- Risks of Using Personal Loans to Go to a Music Festival
- Alternative Financing Options
Possible Uses of Personal Loans
A personal loan is just what it sounds like — personal. You can use it for just about anything. Many lenders will ask you about your intended use, whether it’s for an emergency expense, vacation, wedding, or debt consolidation. Other purposes, like tuition, don’t qualify for a personal loan.
There’s a lot of flexibility in how you use the money once you get it. However, it’s important to carefully weigh the benefits of using a personal loan to pay for an optional expense like a music festival. You’ll need to consider whether the added costs are worth the experience you’ll have when you attend a music festival.
>> Read More: What can a personal loan be used for
Benefits of Using Personal Loans to Go to a Music Festival
Any music festival is likely to be an experience that most people can only have once in a lifetime, if at all.
First of all, you have to pay for the tickets to the music festival itself, something that can cost upwards of hundreds of dollars — or even more if you opt for VIP tickets or other extras. You’ll also need to factor in the cost of travel, lodging (or camping), and food and beverages. Parking costs can add up in a city if you don’t use public transit, and there could be other incidentals that crop up.
The interest rate on a personal loan is generally lower than what you’d get on a credit card, plus you’ll have some flexibility regarding your repayment options. A personal loan is an installment loan, so you’ll know exactly how much you’ll pay each month and for how long.
Risks of Using Personal Loans to Go to a Music Festival
Even though attending a music festival is a rare opportunity, the truth is it’s a luxury. Going into debt for something that is clearly not a necessity can be a risky proposition, especially when you consider the extra costs.
First of all, if you don’t have the credit to qualify for the best personal loans, you could end up paying more in interest than you expected. Let’s say you get a personal loan for $6,000 so you can enjoy a true VIP experience. If your APR is 9.99% and you get a five-year loan, you’ll only have to pay $127 per month — but you’ll end up paying back $1,647.16 in interest.
You can reduce the amount of interest by choosing a shorter loan term, but your monthly payment will be higher and you might not be able to afford it. Is it worth being in debt for five years for a four-day music festival experience?
Alternative Financing Options
Before you assume you need a personal loan to go to a music festival, consider your alternative financing options. Some music festivals may let you pay for tickets in installments, reducing your need to borrow — for the tickets at least.
Alternatives to a personal loan also including planning ahead and saving up to pay out-of-pocket. You can save money on lodging by camping or splitting an Airbnb with friends. If you live close enough to drive to a music festival, you can bring your own food in a cooler and camp; you might also consider opting for a single day pass instead of attending the entire festival.
If you take steps to reduce the cost of attending a music festival, you could put a savings plan into place a year before the festival, setting aside a certain amount of money each month for this specific purpose. Get on a waitlist for tickets so you can buy them when they go on sale, and you can avoid markups from resellers.
Working overtime and starting a side hustle could also be alternatives to a personal loan. Starting now gives you something to look forward to and can help keep you motivated to avoid debt.
A music festival can be an amazing opportunity to experience something spectacular. However, it can also be costly. Borrowing for a consumable luxury can make the trip even more expensive, since you’ll incur added interest and be saddled with an extra debt payment — possibly for years to come.
Before you use a personal loan to go to a music festival, consider your options and think about whether the experience will be worth it three years down the road when you’re still making payments.
Author: Miranda Marquit