Christmas Loans - A Brief Guide
We've all been there, haven't we? Christmas is coming, so you check your bank account before heading out to buy presents and... well, the cupboard's bare. Cue scraping around for some pretty crummy gifts offered under the usual '3 For 2!' banner or, worse yet, waiting until the January sales to pick up some bargains and delivering them to your relatives late. How awful! Of course, it doesn't have to be this way and while you could spend all year squirreling cash away ready to splash out in December, a market has sprung up in recent years for Christmas loans that many people have started taking advantage of... Have a look at Xmas Loans for more info on this.
Of course, a Christmas loan isn't anything special - it's just a regular loan taken out in the last few months before the big day, then spent on all the expenses that Christmas can bring. After all, it's not just presents, is it? There's the tree (if you're the kind of person that buys a real one every year instead of a reusable plastic one...), the food, the decorations, the booze - it all adds up, believe us. While a loan for Christmas sounds like a great idea then, the thing to remember is that it's still a loan and, as such, needs to be approached with the same level head that you would with any other kind of borrowing. In considering a Christmas loan then, you need to ask yourself some questions such as how much you'll need to have a great Christmas without borrowing too much, as well as how much you'll be able to afford in repayments come the new year. These factors allow you to approach lenders and loan providers with some figures that can help you find the best deal for your circumstances. You also need to take your credit history into account, since any instances of bad credit, County Court Judgments (CCJs) or other problems like defaults on previous loans can make it hard to find a Christmas loan that doesn't have an inflated interest rate.
Since Christmas loans are usually for small amounts of money (so, less than £1,000), they're most commonly provided by smaller lenders specialising in short-term payday loans. This often means that applying for one can be as simple as making one online application, while approval can be granted in minutes rather than days and the money could be in your bank account within 24 hours. However, it's important to shop around for the best rate since all lenders are different - playing a couple off one another could help to get you a better deal, although getting a loan broker to give you advice on the best lenders for your circumstances is a far quicker and successful option.
In Summary
Christmas Loans...
Can provide vital cash needed to make Christmas enjoyable for your whole family
Should be shopped around for to help you get the best rate available
Must be budgeted for to ensure you can afford the repayments in the new year
Usually take the form of a short-term payday loan due to the small loan amounts
Are best for covering Christmas only - don't borrow too much!