You are most likely to borrow money for an emergency this month

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Everything, even getting into debt, has a season.

People who apply for a personal loan in August are around 22% more likely to spend money on marriage payments, according to recent data by LendingPoint.

The lender analyzed 100,000 personal loans it had made since 2015. LendingPoint asks its applicants to indicate the purpose of the loan, and as part of this study, it excluded borrowers who were looking to consolidate their debts.

“I would have thought spring would be the prime wedding season, but more people are applying for these loans in August, most likely for a fall wedding,” said Mark Lorimer, marketing director for LendingPoint.

Meanwhile, September is emergency spending month: borrowers who apply for a loan that month are almost three times more likely to use the money for unexpected expenses.

A loan for each season

See below for a breakdown of the priorities that tend to lead to the loan for each month.

February is an important month for filers who expect to owe the IRS: “taxes” were the main driver of loan applicants.

Best practices

Whatever your reason for needing a personal loan, be sure to take a good look at your own cash flow first.

“It doesn’t make sense to take out a loan if you’re going to have a hard time paying it off,” Lorimer said.

Be aware of your monthly payment and how it fits into your regular expenses. A rule of thumb is the “final report,” so your monthly housing costs and debt repayments should not exceed 36% of your gross monthly income.

You should also think about what you hope to accomplish with the proceeds: is it something you can budget for?

“Do you have to borrow or do you have to save a little until you can afford it?” Lorimer asked. “It’s about making sure you don’t take too much of a loan. “

Personal loans can be a valuable tool for people trying to consolidate high interest credit card debt.

Interest rates on plastic are around 17 percent, according to CreditCards.com.

Borrowers with sterling credit scores tend to get better rates. Interest rates on personal loans can range from just over 3% to almost 36%, depending on EnlargeSilver, a personal finance site.

Make sure to keep an eye out for unexpected expenses, including setup fees and prepayment charges. Consider these hidden charges in addition to your interest rate when shopping for deals.

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