Christmas Loans
The christmas holiday period seems to get longer and longer and the increased cost of presents, wrapping, parties and food bills just grows each year. The latest christmas toys for kids are now averaging at about £40 each, and the pressure to get bigger and better toys than everyone else can create a lot of pressure on you. It's no wonder that Christmas can be one of the most stressful times of the year. There is enough to think about without worrying about how you are going to finance your way through the holiday season.
Plan ahead
The key to a happy holiday season is to plan ahead. One option is to take out a personal loan. Now these can be either secured against an asset (ie: your home) or unsecured, although unsecured loans do incur a slightly higher interest rate as they are higher risk for the lender. Personal loans are generally much cheaper than credit card or store cards because they carry a much lower interest rate. Store and credit card interest charges average at around 16% but can be as high 30% in some cases where as personal loans, even if unsecured are generally below the 10% mark.
Debt Consolidation Loans
If you are a homeowner and have a few credit or store card debts, maybe you should look carefully into taking out a consolidation loan which can often decrease your monthly repayments at the same time as covering your existing debts and having enough left over to finance christmas. The larger the loan amount is, the lower the interest charged will be.
Compare loan deals
The key to choosing a good christmas loan deal is to calculate the TAR which is the Total Amount Repayable at the end of the repayment term you choose. Many comparison sites will work this out for you and it clearly shows you which deal is the one worth going for.
Apply sooner rather than later
If you are definitely applying for a loan for christmas time then get cracking now. If you send your application off now you could get your payout in time for christmas itself. This way you won't have to use your credit cards at all. So the sooner you apply, the quicker you get your cash and can get busy preparing for a fantastic christmas.
How long before the loan pays out?
The time it takes for loan companies to payout depends on the type of loan you go for. Unsecured loans usually only take a couple of weeks to complete whereas secured loans are slightly more involved and could take a minimum 3-4 weeks. Some loan offers will also include a loan payment holiday option. This means you can choose to not start repaying your loan for up to 5 months.
The key to a great christmas is planning ahead and being prepared, so reduce your financial stress and money worries, take time to compare the great christmas loan deals on offer and make sure you have a merry christmas.
Advantages of Christmas Loans
- Takes the financial burden off you over the christmas period
- Consolidate all your other debts with a christmas loan and reduce your monthly repayments
- Payment Holiday Options can let you postpone repayments for up to 5 months
- Cheaper way of borrowing to help pay for christmas than using credit cards or store cards that have a higher interest rate
