1. Set a Christmas budget (as early as possible)

1. Set a Christmas budget (as early as possible)

Budgeting for Christmas can help you control your expenses. Ideally, you’ll start saving early and be able to cover the costs with cash and, if you expect one, a Christmas bonus.

If you do borrow, plan to repay your debt within around four to six months of the holiday at most. If your planned expenses take a full year to pay off, you’ll likely be in the same situation next year. And if you have to borrow again, you’ll constantly find yourself paying off Christmas debt.

2. Decide which traditions to keep and which to let go

While you may be tempted to keep every tradition alive forever, you should carefully think about your Christmas expenses and see whether you can do without any of them.

Perhaps you could switch to a gift swap with one family member instead of buying for everyone, or opt to stay in and rent a movie rather than taking everyone to the theatre to see the year’s big release. Lower costs will mean less debt.

3. Avoid Christmas financing traps

Some forms of Christmas financing are dangerous to your finances and more expensive than they’re worth. If you plan to take on debt for the holiday, avoid payday loans, car title loans, and store credit cards.

Payday Christmas loans

Payday loans, or cash advances, are short-term loans that come with fees and interest rates around 400% or higher. These loans can quickly trap you in debt, because they are so expensive that borrowers are often forced to repeatedly borrow.

What to choose instead: Look for a personal loan from a bank, credit union, or online lender with flexible credit requirements and quick funding. Rates vary based on your credit history, but people with good or fair credit should look for interest rates around 5% to 15%.

Car title loans

Auto title loans are a form of payday loan that uses your vehicle as collateral. Pokračovat ve čtení „1. Set a Christmas budget (as early as possible)“

remains the exact same no matter what county you live in their state allows payday loans online although payday

remains the exact same no matter what county you live in their state allows payday loans online although payday

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