When you arrive in Palanga and leave the bus, you will see a lot of woman around you offering rooms and apartments. Well, I think you must be advised that any of those accommodations aren't comfortable as you are hopping!!! You must remember that in Lithuania the patterns of comfort are very different from the west countries, and they have not the sensibility for the western comfort style. For example, one of the private apartments that I have seen… hasn’t washbasin in the toilet!!!
If you accept an offer for private room or apartment, you must be modest about your expectative, if you are tolerant I think you can spend a good time in a private accommodation, at cheap prices.
Palanga is a very popular destination in Baltic region and some other northern countries (mainly in Germany), so I don't recommend you spending holidays there from july 01 till August 15; unless you want to spend holidays in a very crowded place...
Fun Alternatives: If you are forced to select just July or August, because familiar limitations, then you must expand your activity for other seaside places, as Nida, for example.
If you are staying half time of your vacations in Palanga, and the rest of time in Nida, don't hesitate to buy ALL your souvenirs before leaving Palanga, as any souvenirs are much more expensive in Nida !
Take note that Basanavièiaus gatvë (Basanavièius street), which is full of tourists ussually, has higher prices and not necerailly better foods than other parts of Palanga. Go to this street if you want to dance or hear loud music, but stay away if you want tranquility and cheap prices.
Fun Alternatives: You can go to Jûratës gatvë (street). If you want cheap prices, you can get ones at Þvejø gatvë (street).