Christmas can be a very expensive time of the year. According to Statista, Americans are expected to spend $932 on Christmas shopping on average this year. This number is significantly higher than last year’s $886 and would be the highest in history. This is no small part of the budget. Of course, many of you may have already started shopping and realize you may need some additional money to finish but cannot wait until the next paycheck. Hence, we will discuss Christmas loan options for you to cover your Christmas expenses.
What is a Christmas loan?
Christmas loans are nothing more than a personal loan that does not require good credit or any collateral. Unlike some loans, you can use a Christmas loan any way you wish. If you can qualify for a traditional loan, then that should be your first choice, as your interest rate will be much less than most credit cards and alternative lending options.
Types of Christmas Loans
When it comes to Christmas loans, there are three options:
Bank savings and loans consist of traditional lenders. These are hard to qualify for loans and have long lead times to process, so they do not work for most people. And most people cannot wait for weeks or months to get the money. Also, the average amount needed for a Christmas loan is not huge. It is often only a few hundred dollars.
Using your credit card open balance is a great way to cover any emergency expense, as you can pay the bill later. However, most people already use up their credit card monthly limit by the time Christmas comes so that option may also be off the table.
These are private lenders and other financial organizations that offer installment or payday (cash advance) loans for a short term.
Online Christmas Payday Loan
When you have no other options, then an online loan from a reputable company is the best remaining choice. Payday loan lenders rarely do a hard credit check, so there is no impact on your credit score. These are fee-based loans, and the fees are determined by your state laws. Every state has lending laws, and online loans are closely monitored. Also, the lenders are licensed in the state you reside in.
The key to accepting an online loan is to be sure you can pay it back on the due date, which is no more than one month after signing for the loan (in all but a couple of states). If you are considering this option, be sure to ask your lender before you sign the exact due date of your loan. If you are not confident that you can pay back the loan plus the fees on the due date, you should not choose this option.
Is It a Good Idea to Get a Christmas Loan?
Adding debt at any time of year is generally not a good idea, especially if it is not for emergency purposes. However, you can’t always avoid your Christmas spending. Nonetheless, if you don’t want to borrow loans on Christmas, then you will have to save money to cover all your expenses.
Tips for Saving Money for Christmas Gifts
Often these tips are considered ‘’common sense’’, but we forget them when in the rush of the holiday season. So read through these pointers as a reminder of what we all should do.
Establish a Christmas Budget
Budgeting for Christmas will help you control your spending. It is best to start setting your budget well in advance of the holiday. Start saving early and ease the stress of shopping by having most or all of the budget set aside before the season starts. If you borrow, be sure to repay your debt on time to avoid any additional costs.
Decide what you can do without
We all tend to go a little overboard when shopping for Christmas, but there are many options to reduce that spending. Perhaps you will focus on the kids or grandkids and not buy a lot for each other. Consider not exchanging gifts with co-workers and most friends. You might have dinner together with friends instead. Be creative and even share dinner expenses with a potluck, as hosting the dinner can also be very expensive.
Shop for specials and deals
There are always coupons and deals online and offline. Check before you buy. You can save a ton by being a smart shopper. Often you can do your research online before you actually start shopping. More than half of all Christmas shopping is now online. It is convenient, and you often get the best deals.
Craft hand-made gifts over buying ready-made
Whether it’s Christmas or any other holiday, we always tend to buy gifts rather than create one. Gifts are expensive during holidays, and buying them can disrupt your budget. Hand-made gifts are much cheaper, and they represent your efforts and feelings in a better way as well.
Sell to Buy
You can sell your old and unused items this Christmas to generate funds for shopping. This way, you will get rid of your old and unwanted stuff, making room for new things and also getting money to buy them.
So set a budget, and start saving for 2022 as soon as you can. Explore ways to save by limiting the number of gifts you buy and reducing the big dinner feast budget!
Cover Your Unexpected Christmas Expenses with CashInaSnap!
CashInaSnap has been in business for more than a decade and provides service 24/7 and 365 days a year. Consider requesting an online loan or payday loan if you need one today. CashInaSnap is a referral service with more than 100 direct lenders waiting to review your loan request. Once approved, you will get urgent money in a day or two. Credit problems are not an issue. Contact us today for any questions or issues.