The true cost of unplanned expenses
A March 2025 Splitit and PYMNTS study found that over a third of shoppers made an emergency purchase over $250 in the past year, with a median cost of $605. Auto and home repairs are the most common cause, and home repairs are the costliest, with a median spend of $2,112.
Plus, more than half of consumers say they’re worried about being able to afford their next unplanned expense, which turns every one of these moments into a decision made under pressure rather than a straightforward cost to cover. For some, that pressure has a harder edge: rather than finding another way to pay, they simply forgo the purchase, whether that’s a repair, a replacement, or care they need.
The best way to pay for an unplanned expense
The same research found that consumers reach for credit slightly more often than cash when an unplanned cost hits, and credit cards are by far the most common credit choice, well ahead of traditional BNPL.
None of these payment methods is automatically wrong but knowing what to watch out for beforehand is key. Here is how the main options actually compare:
| Payment Method | How it works |
|---|---|
| Readily available cash | No interest or applications, but it draws directly from funds you may want for other things. |
| Credit card | Covers the cost immediately, but high-interest rates will make the emergency much more expensive if you can’t pay the balance in full. |
| Traditional BNPL | Spreads out payments, but requires a separate approval, a new line of credit, and a new account to track. Worth noting that longer-term plans may also come with added interest. |
| Credit card installments | Spreads out payments using your existing credit on your credit card with no new loan or application. |
Speed and certainty matter most when an expense is unplanned. Knowing a payment method will go through out ranks rewards or cost when a decision has to be made on the spot, which is why it pays to have an option lined up before you need it.
Choosing a payment solution without taking on new debt
The goal is to avoid opening more credit than you need, which is where using credit you already have helps most. Splitit does exactly this through credit-card installments by splitting the cost across a card you already carry, with no new loan, application or credit check.
To keep your finances healthy when emergencies strike, keep these best practices in mind:
- Avoid stacking too many BNPL or short-term loans at a time.
- Favor credit you already have over opening something new.
- Treat each installment as a fixed cost, not flexible spending.
If you’re weighing whether a given expense is even worth splitting, our When (and When Not) to Pay in Installments guide walks through that decision directly.