People take out loans to pay for many things, like cars, homes, and schooling. However, a loan isn’t a good way to make every purchase. Honolulu-based Hawaiian Tel Federal Credit Union specializes in educating members about loans and financial alternatives designed to protect their budgets and build rainy-day savings.

3 Items You Shouldn’t Use A Loan To Buy

Gifts

If you’re feeling pressure to spend more than usual for holiday and birthday gifts, you may be tempted to take out a loan. Don’t give in to impulsive buying, and create a plan to save money specifically for this kind of spending. Your credit union can help you set up a Christmas savings account and make regular contributions to it.

Inexpensive Items

If you can pay for an item with cash, forego taking out a loan. Before buying any item, ask yourself, “Is this something I need or just something I want?” If that kitchen gadget or piece of furniture isn’t a priority, don’t buy it. If you feel you must have the item, save money to purchase it rather than borrow funds.

Fashion Finds

When you make the rounds in malls and boutiques, you see expensive designer clothes everywhere. Stores arrange their displays to entice customers to buy the latest high-end sneakers or expensive jewelry. Resist the urge to borrow money to pay for luxury items and opt to save or shop around for a better deal.

For 80 years, Hawaiian Tel Federal Credit Union has served individuals and businesses throughout Honolulu, Kapolei, Mililani, Pearl City, and Waipahu, as well as Wheeler Army Air Field. With personal banking services like Christmas Savings and VIP Money Market accounts, they have many smart alternatives to taking out a loan. Call (808) 832-8700 or visit their website to find a location near you and learn more about the savings accounts offered by Hawaii’s best credit union.