For many, the holidays are a time of giving. We get together with our friends and family and spend time together. Unfortunately for others, the holidays are the most depressing time of the year. The strain of providing gifts for everyone, huge meals, and traveling while still paying the bills puts a huge strain on wallets and causes many to wish they could skip December and move straight into the middle of January. There are many options to take when finding a way to cushion the seasonal load. Some choose to forget gifts entirely, to make baked goods for gifts; others take out loans or borrow money. If you do choose to take the borrowing route, tread lightly. The path of borrowing is a bit complicated so here are some dos and don’ts of holiday-loan lending to help you along:
Do research on taking out the right loan and get a good deal on borrowing. Interest rates are the key factor in this because they vary between lenders. If you shop around you can find the right interest rate and save money on your monthly payments.
Do make sure you can repay the loan within a year of borrowing. Unless this is a one time blow out holiday, you should make sure you can repay the loan within twelve months to ensure that when the next holiday comes around, you aren’t still making payments.
Don’t take out a loan if you can’t afford the payments. It’s nice to have some extra cash during the holiday season but it’s not worth it if you are going to struggle with the bills. Take into account your future payments for mortgage or rent, and the bills to see if you can manage a loan payment.
Do set a budget and make it as detailed as possible. In taking out a loan it can feel like you have plenty of money, but it is a mistake to spend blindly. Make a budget and stick to it! If it helps order things online so you’re not tempted by the in-store purchases.
Don’t feel like you need to take out a large loan. If you can’t afford a huge trip, or a large gift, then do something else. Take out a smaller loan to help with the finances of the holidays and skip out on the huge gesture. It will be just as special and a lot less stressful on your budget.
Do talk with your children before the season begins. It’s easy for the kids to get unrealistic expectations from their friends and the TV. Give them something to look forward to that’s also in the loan budget. For example, make a big deal about the family dinner and how fun it’s going to be, or do a craft every night that has something to do with the season. If you are excited about it, they will be too.
Do collaborate. Get together with siblings, friends, and colleagues to combine gifts for people. Talk to each other about other gift giving options like secret Santa, or white elephant gifts. Also, if you’re having family over for dinner, ask them to bring something. It’s almost a guarantee that people coming to a party are going to ask if they need to bring anything. When they do, say YES!
Not everyone has the available cash to afford a holiday when they need one but holiday loans are a good place to start. Talk to a firm and see if you qualify for a holiday loan today!
Advantage Financial Services is an online loan company that specializes in fast, personal cash.