What type of financing to choose for Christmas
The month of December, without any doubt, is one of the most expenses generated. Gifts, decorations, meals, visits, trips … the celebrations of the Christmas holidays always entail many expenses.
In addition, the beginning of Christmas has arrived, bringing commercial campaigns full of discounts and Christmas special offers. As so many extra expenses accrue over the next few weeks, not all people can afford to make Christmas purchases unless they use a type of financing.
If you are also looking for liquidity that allows you to make your Christmas purchases and defer payment to not assume all expenses at once, there are several alternatives that you can go to. In general, the most commonly used financing options are credit cards, fast personal loans and credit lines.
The “plastics”, as every year, will be the most attractive and preferred financing option by the Spaniards to finance their purchases, both in physical stores and in online stores. However, the cost of deferred payment with some credit cards is usually too high, around 20% APR.
Taking into account the high cost of this type of financing, you can find cheaper lines of credit and personal loans with which to finance your Christmas purchases.
Request financing “with head”
The Christmas season is one of the most dangerous for your finances. Although requesting financing for Christmas expenses comes as a comfortable option, you should always do it with your head so that you do not ruin your budget and avoid excessive indebtedness.
According to your economic situation, set a maximum budget and try to respect it so as not to over-borrow.
Use your credit card to quickly cover those small or unforeseen expenses that may arise.
For larger purchases, consider one of the loans or credits that apply reduced interest below the average and allow you to obtain higher amounts.
To choose the most advantageous financing
Deeply analyze the conditions of each offer and compare it with the other offers in the current consumer credit market.
To avoid the accumulation of interest, always try to shorten the repayment term of your loan or credit to the maximum .
Before opting for a financing or another you must take into account its total cost, both to make sure you chose the cheapest option and to be able to meet the return fees on the agreed dates .