The Christmas season is not called the silly season for nothing. Its an expensive time of year and even though retailers will be offering specials and discounts there are many things that need to be considered over the festive period. Not only do we get gifts for friends and family there is also family feasts and holidays. So, even though we have the best intentions around this time our bank balances don’t always stretch as far as we would like them to.
Ideally, you would have wanted to have saved up throughout the year for these expenses, but things don’t always go to plan. One way that you can pay for all these items is through a personal loan and use it to pay for gifts, travel, food and anything else you may need for the festive season.
So, here are the top reasons why you should consider a personal loan for Christmas.
Have a Plan In Place
If usually, your holiday funds start to run low before the holidays are even over, then you are most likely miscalculating your seasonal budget. You will need to be realistic and really work out what you spend over the festive season. A Christmas loan can help you to create a holiday budget and you will need to follow this as closely as possible. Unexpected expenses have a way of popping up, but when you have a budget then you are more likely to stay on track.
A Christmas Personal Loan is Cheaper than a Credit Card
You might be tempted to put all your Christmas expenses on your credit card, but your credit card usually carries a higher interest rate compared to a personal loan. Also, if you are not able to pay off the full balance at the end of the month then carrying high interest credit card debt can cause financial issues and play havoc with your monthly budget.
A personal loan, on the other hand, may have lower interest rates and with a set repayment period and amount, it will be easier to manage.
A personal loan for Christmas is there to help you get through a busy financial period and reputable providers will ensure that you can afford the monthly repayments before giving it to you.
You Can’t Blow Your Budget
A credit card will have a max credit limit and if you are not careful, you can easily spend more than you wanted to because it is so easy to just swipe your card and worry about it later. With a personal loan, you can only borrow up to a certain amount and can’t increase the amount. You will only have what you borrowed available making it less likely for you to blow your budget. Leave the credit cards at home and only use your personal loan with your budget to pay for things you need.
No Guess Work
A personal loan is fixed. You will have a fixed amount with a fixed term. You will be required to pay a certain amount each month for a fixed amount of months. This means you will know exactly what you will be paying each month and can budget accordingly.
Also, as it is a fixed amount it is easier to say no to additional debt or expenses because you don’t have the money. It will then force you to only get what you need. You will be more aware of your finances and will be forced into managing your finances.
It Takes Out The Stress
Once you have qualified and have received your loan, you can follow your plan and budget and feel less stressed knowing that you have everything covered and will not need to worry about your huge high interest credit card bill in January.
A personal loan for Christmas can help you through this busy period and with fixed terms, you will find it easier to manage and plan for than a credit card.