Christmas Loans To Help You Celebrate

A group of colleagues are shown opening Christmas presents
Spending And Borrowing With Holiday Loans
Part 1 Do You Need A Vacation Loan? – Keep Costs Low
Part 2 Holiday Loans To Help With Shopping
Part 3 Online Shopping And Responsible Credit Card Spending
Part 4 Christmas Loans To Help You Celebrate

When you are trying to find the perfect gift it is difficult to be careful about how much money you are spending. An average person spends $938 when Christmas shopping and if you double that for a couple or a family you can see that Christmas, far from being the most magical time of year, is so expensive that it can turn into a financial nightmare. In this article we take a look at:

  • Enjoy Christmas by avoiding debt
  • Keeping down gift expenses
  • Buying Christmas gifts on credit
  • Planning ahead for the next year

There are many ways you can avoid getting into debt or at least to mitigate the amount that you spend and some of the tips that apply to Black Friday spending can be applied to Christmas shopping.

Planning your Christmas spending

Making a plan about who to buy for and how much to spend on each gift is a good start to staying out of the red. Another good idea is to do your shopping a little earlier so that you do not have a last minute panic which could easily lead to overspending.

The average American spends about $940 when Christmas shopping

If time is at a premium, shop from home using online stores. This allows you to take your time and find the right gifts. However, be aware that most online shops charge delivery costs so this should be factored into the budget.

Essentials and nice to have

Some things are essential to help you enjoy your Christmas holiday break. If you need to travel to see your family, the amount you allocate for spending should include some travel expenses. Sometimes it is easy to be tempted into spending money on new Christmas decorations simply to keep up with the neighbors. But, do you really need extra lights and the latest gadgets to enjoy a good Christmas? It is far better to use existing decorations and change around the display. After all, most people won’t remember what the lighting show looked like last year or the year before.

Keeping down gift expenses

Although everyone wants their kids to have a great Christmas with lots of gifts, it is much better to keep to a limit on the amount of gifts for the children. Most younger kids simply don’t want or need a closet full of new presents.

A family is shown at the dinner table being served food on Christmas day

Encourage family to buy useful gifts for young children such as clothes. Or, ask them to donate a small monetary gift that can be put towards a college education in the future.

Buying on credit

The best way to avoid debt problems in the New year is to limit spending on credit and store cards. Far from enabling you to have a good holiday, too much spending will give you a New Year headache and it can take many months or even years to pay off a lot of credit card debt.

The best way to avoid debt problems in the New year is to limit spending on credit and store cards.

If you absolutely must use credit, make sure that the card has some benefits like reward points or a long term 0% interest rate. Using a cash back card can also enable you to save up for next year and decrease the burden of Christmas holiday spending in the future. Using a credit card to finance Christmas is likely to double your Christmas spending simply because if you do not pay off the balance immediately, the interest payments will add to the original cost of gifts.

Planning ahead for the next year

Keeping a limit for spending at holiday times is down to good planning. And, you can start immediately so that plans are well ahead for the next Christmas season. Buy gifts in the January sales and stock up on cards and gift wrapping. Look for bargains throughout the year so that the expense is spread out over months and not a few weeks. Finally, remember that if you take out a payday loan or use a credit card to pay entirely for Christmas, it will make your holiday season far more expensive and you could end up paying out monthly amounts for years to come.

Spending And Borrowing With Holiday Loans
Part 1 Do You Need A Vacation Loan? – Keep Costs Low
Part 2 Holiday Loans To Help With Shopping
Part 3 Online Shopping And Responsible Credit Card Spending
Part 4 Christmas Loans To Help You Celebrate

About the author

Mark Larsen

Mark Larsen has worked in the finance industry for over 20 years. Over the course of his career, Mark has amassed experience in personal finance and especially short-term lending. He shares his valuable insights on onlinecreditusa.com