• More debt. More debt increases your chance of having a lower credit score, which in turn can make it difficult to qualify for things you might really need, like a car or mortgage.
• Pay more than it's worth. Say you take out a $3,000 personal loan at 10% interest for a year. With interest and monthly payments, you end up paying hundreds more than just $3,000.

Not getting into debt for vacation
While it may seem like a vacation is out of reach, there are many ways to not get into debt for a vacation. The following are some tips for getting away on vacation without getting into debt:

Save
This is the easiest way to pay for a vacation. Fit a little extra savings into your budget each month that you can set aside for a vacation. Or, forgo eating out for a little while and use that money instead towards your vacation fund. You could also cancel little luxuries for awhile, such as cable TV, and put that money towards vacation.

Take a second job.
If you are dying to go on vacation, you could pick up a second job on weekends or some evenings, and use the money you earn from it towards a vacation that you can pay cash for, rather than one you will have to get into debt for.

Budget
If you have a budget you are good at sticking to, consider adding a vacation fund to your budget and put aside money towards it.

Have everyone chip in.
Have your kids donate their allowances and spare change for a family vacation fund. This is a fun way for everyone to get involved in saving for a vacation, and it also teaches kids the importance of saving money.

Look for travel deals.
Keep on the lookout for travel deals. For example, you can get a better deal on airline flights but entering in the "flexible dates" options rather than setting a specific date. Or, you can save money on travel by checking in and out of hotels on weekdays rather than weekends.

Take a smaller trip.
A fun vacation doesn't need to break the bank. If there is a major city within your driving vicinity, consider taking a mini vacation there and checking out the sights. Or, do something that doesn't require much money, like camping and hiking. Outdoor activities are fun and inexpensive.

Getting into debt for a vacation may seem like a good idea at first thought, but it can actually take a toll on your finances by potentially lowering your credit score and having to pay back a significant amount of money in interest. The above tips are a few ideas for not getting into debt for vacation.