|
Can you afford a Christmas Tree? The credit crunch, inflation, the recession, are all making the holidays a bit drearier than those in the past. Folks who barely made it through the year, are probably wondering how they are going to make it through the holidays. Savings may be gone, or severely depleted.
A holiday loan, considered soberly, may be the way around to gather up the sort of holiday that your family expects. It is often easy to land a holiday loan. And if you keep the amount small enough so as to manage the payoff in the coming year, it could be a way to put a little spirit into your holiday budget.
Why the Holidays Cost a Lot
The holiday season is not a season tuned to frugality. Inflation will have already taken a bite out of your purchasing power. Kids are the special focus. This is their season, after all. They probably have a list as long as your arm full of the latest in hot toys, electronics, coolest clothes, and other items too numerous to mention. Aside from gifting, other expenses pop up. Musicals, entertaining, food, drink, travel expenses, and all sort of other things can pop up.
Start the Holidays with a Budget
As you think about taking out a loan to round out your holiday, you need to have a plan. Sit down with a significant other and make a list and check it twice. Put down all the things you would like the loan to cover along with an estimated cost. How much do you want to spend on each person? What about entertaining? Lots of food and drink may be necessary. Are you going to have a big party or a big holiday feast? Do not forget decorations and other little necessaries. Will you go out a lot? Will you need a wardrobe refresher? Do not forget Secret Santa at work or the mailman.
Typical Holiday Loan Ranges from $1,000 to $5,000
A good rule of thumb is not to borrow more than you can pay off over the next year. Anyway, now you have your budget laid out and know how much you need. You need to approach your lender and work out the terms and conditions of the loan. The lender will guide you as to how much you can borrow based on your income and ability to pay. Be careful during this phase in the planning, if you have pretty decent credit, your lender may actually encourage you to accept a little more than makes you feel comfortable.
If you are comfortable with the loan amount and the payoff terms, successfully retiring the loan over the next year will allow you to perhaps borrow a little more next year. You may also be eligible for reduced rates and fees the next time as well. If you want to get even lower interest rates and fees, you could offer to back up the loan with collateral. This is usually in the form of real estate, a vehicle, or other items whose value can be determined. You lender can provide you with specifics.
If your loan needs are not that high, you may find that a loan from $500 to $1500 is well within your means. These are easily found online. The application process is fast, the funds can be in your account within 24 hours. Whatever you do, be cautious. Do not get in over your head. A good holiday is not worth a year of onerous debt. Keep your holiday merry, but not at the expense of your peace of mind. |
