Christmas Loans – The Good and The Bad
There are many reasons why people use Christmas loans. These are exactly what they sound like. When you take a loan out to help with paying for presents it is considered a Christmas loan. This can be in the form of a personal loan, a cash advance loan, or even a long-term cash advance loan. Many banks offer these in November and December, but they really offer them all year long.
Using Christmas loans is a great way to keep those credit card bills down, but you have to know what you are getting into. There are many loans that may not be very good for you and buying presents is not going to pay for itself. However, if you use a Christmas loan in the right way you can certainly get the results you are looking for.
How to Use Christmas Loans to your Advantage
The holidays can be a very expensive time with paying for food, traveling, presents, and many other expenses piling up. You need to have a plan to deal with these in the right way. If you can get a good loan for Christmas you will be able to cover all of your bills and all the extra expenses by spreading them out over a few months.
Instead of trying to pay for all of your bills and the extra expenses of Christmas you will have a little bit of help. Nobody needs extra stress around the holidays and that is exactly what being short on cash will do to you. Instead of getting frazzled this year take the financial stress of your shoulders with a Christmas loan.
There are many good loans that work well throughout the holiday. The one that you want to be careful of is the cash advance that does not give you much time to pay it back. You need a loan that gives you at least a few months after Christmas to pay it all back. This cannot be a 30-day loan or you will just cause yourself more financial stress than you need.
Instead, look for a personal loan or a payday loan that gives you more than a month to pay it back. The best Christmas loans are the ones that give you plenty of time to pay and also give you manageable payments. Whether you need 100 days to pay your loan back or a full year, make sure you can afford the timeline of the loan you are taking out.
One of the other things to be very careful about is the actual amount of the loan. Just because you get approved for a certain loan amount does not mean you have to take out the entire amount. You can choose to only take what you need, which will make things easier down the line.
Take the time to tally up the money you need for presents, food, travel, and other expenses. Then, just to be safe pad your number by about $100. This will help if any unexpected expenses arise or if you miscalculated a bit. This is the amount you need and you should not take any more than you have to have.
The more you take the more you are going to have to pay back, and the more interest you will have to pay over the course of the loan. A good Christmas loan will cover what you need and nothing else.
What Banks Don’t Tell you About Christmas Loans
Banks do not have a special loan for Christmas. It is just a personal loan or a payday loan they call a Christmas loan. This means you are going to need to check the interest rate and the terms of the loan an extra time. Don’t be fooled by the way banks market these loans to the consumer. They are still just personal or payday loans.
Using a Christmas loan is a great way to go about getting the extra cash you need for the holidays. Make sure you take the time to check out a few different loans so you can get the right Christmas loan for your needs.