A Christmas loan and Christmas presents can be tempting if you want to make Christmas extra lavish for you and your family. But most often it can be difficult to pay off the debt before it becomes Christmas again – unless it’s just a small loan. Read here what to consider before financing Christmas with a quick loan for Christmas gifts.
Christmas is the feast of hearts!
Or is it?
For where it might delight the heart with all the good gifts, the good food and the great fun, it will easily hurt terribly the wallet if there is not enough money for Christmas on the payroll.
Therefore, many people are tempted by a quick loan online if they want to make Christmas extra lavish. Then everyone can be afforded what they want – and that no one goes hungry from either the Christmas table, the Christmas lunch or any of the other Christmas events and traditions you have in your family.
Question is just whether it’s smart?
After all, for such a loan must be repaid. Of course, that’s not something you’ll worry about until next year. But do not forget that the New Year is just around the corner, and here the Christmas loan may in turn stretch out a huge leg for your finances.
If you have first introduced a loan as a new Christmas tradition, you can very easily end up trapped in a pure Christmas debt spiral. At least if the Christmas loan doesn’t get settled before next Christmas.
So if you want to borrow for Christmas, it has to be done with care!
Save up for Christmas
Instead of borrowing and paying off on the back end, the sensible solution is to save up for Christmas up front. Here you set aside a fixed amount each month, which you can then buy Christmas presents and Christmas.
Create a separate account for the purpose so that the money is taken out of your ordinary finances. Or keep track of how much of your budget account you can raise and spend at Christmas with an ever-updated private budget.
It feels so much better to be able to keep the Christmas you want when you have saved your money upfront. But we all know that unforeseen expenses can easily get in the way of ending your plans.
When is Christmas payday loan an option?
And then it is good that you have the opportunity to borrow. However, whether you should consider taking a quick loan to fund your Christmas depends on a number of different factors that you should consider carefully before you borrow.
Therefore, if you need to make a quick decision on whether it makes sense to take a Christmas gift online, you should at least consider:
- Loan amount – If it is only a small amount of max. 4-5 thousand dollar, it is probably possible to borrow. But you don’t have to borrow terribly much more than that before it becomes difficult to get the loan repaid by next Christmas even with a relatively good and well-padded private economy.
- The term of the loan – preferably should not be more than 6-10 months. Otherwise, you end up still paying off the loan for next year. Here is the fastest repayment period on quick loans, typically 12 months, which means you end up having to pay the last installment on the Christmas loan for Christmas next year.
- Size of the APR – The APR indicates the percentage of the loan that goes to interest and fees. Here you should go for a consumer loan with a low APR and not one of the “smart” cash credit-like online loans that replaced the SMS loans. Here, the AOP is so towering that your Christmas loan becomes very expensive.
- Your financial situation for next year – Do you know in advance that you have air in the private economy for the repayments on the Christmas loan? Or are you unsure if you can keep your current job, or are you aware of some major expenses that you can expect to pay in the new year. So be careful about borrowing for the Christmas presents. It could be the extra expense that will make your entire finances overturn.
It actually doesn’t make it easy to find a quick loan to cover your money needs for Christmas. For the minimum amount of many of the cheapest low-interest-rate mortgage loans is significantly higher than the USD 5,000, which we advise you to keep the loan amount within.
Similarly, the APR easily surpasses the 20-30% of those mortgage loan providers who agree to lend you such a low amount. Typically, these are the finance companies used to finance home appliances, mobile phones and televisions. A business they earn well – precisely because of their high interest rates.
First try in the bank
So just as with Christmas gift loans, we recommend that you first try whether you can get a overdraft, or a bank credit at the bank. Or maybe a real, short-term consumer loan with a 6-8 month maturity.
Only if you can’t, the quick loan is your only real alternative if you want to borrow for Christmas gifts and Christmas parties. You should stay away from all other types of cash credits and other types of loans online.