Whether you are looking to upgrade existing furniture or are ready for a whole new look, the question of how you will pay for it is probably one of your top concerns. Flipping through magazines or looking online for design inspiration is the fun part, reality sets in once you start checking price tags. People face this issue every day. So, what is the answer? You have a few options.

Tap into Savings

If you have money set aside to spend on furniture, that’s great. Not everyone will be able to do this. You don’t want to drain your savings to furnish your home. Always keep some funds back in case something unexpected comes up and you have a cushion or rainy-day fund to cover.

Take Out a Personal Loan

When it comes to advantages, personal loans typically offer a better interest rate than credit cards. Using a personal loan to furnish your home ensures that you know exactly how much your payment is and how long it will take to pay off. Personal loans are easy to apply for, and you can find out quickly the interest rate you qualify for and the terms of the loan. There is no obligation, so you can take the time to review your budget before borrowing the money.

Use Credit Cards Responsibly

Using credit cards to furnish your home is rarely a good idea. You could probably beat the interest rate with a personal loan. Tying up your credit cards with furniture purchases can also have a negative effect on your credit score if doing so pushes your credit utilization above 30 percent. Another problem with using credit cards to pay for your furnishings is that you are taking away another source of emergency funding. Ideally, you don’t carry a balance month to month, but if you are facing an emergency, a credit card is often the quickest and easiest way to cover an unexpected expense.

Secure Financing from the Furniture Store

Some furniture stores offer their own financing when you purchase products from the showroom. Whether this makes sense or not depends on a few things. If the furniture store is offering a no-interest promotion, and you are confident you can pay the debt off before the promotional period ends, it can be a good deal. If you aren’t confident in your ability to pay off the furniture before the end of the promotional period, read the financing terms carefully. Generally, unless the loan is paid in full by the end of the promotional period, you are responsible for accumulated interest, not just interest from that point forward.

Prioritize Your Purchases

There is no reason you have to buy everything at once. Perhaps you can take out a personal loan to cover the cost of your living room furnishings and start putting a little extra in savings with each paycheck. Before you know it, you will have enough savings to purchase your dining room furniture. After paying off your personal loan for your living room, borrow enough to cover bedroom furniture. By staggering the purchases, you aren’t facing a big hit to your savings or a dramatic increase in your monthly expenses repaying a loan.