Can short-term loans help you prepare for Christmas?

Most of us love the festive season, but there’s no denying that it’s also the most expensive season, too.

Excitement at the holiday period is tempered with knowing that financially, you will need to stump up more cash to experience Christmas.

According to a Bank of England report, households spend an additional £500 per month in the run-up to Christmas.

25% of households experience an increase in financial difficulties during the Christmas period.

Which is why it is imperative you should consider placing some additional funds aside now to prepare.

Another option, and really the last resort is to consider a short-term loan.

Loans are easy to apply for these days. A direct lender will provide you with a loan almost instantly, whilst others like traditional banks prefer specific qualifying criteria.

Provided the short-term loan is repaid instantly, you can use it to get what you need for Christmas without having to worry about long-term debt going into the new year.

Set money aside

Thinking about Christmas during Autumn can seem like a deadly sin, but it’s one of the smartest things you’ll do all year.

Nothing is more embarrassing about ensuring you’re fully prepared for Christmas when the time comes, and if that means beginning now, so be it.

Placing a tidy sum aside each week or month will gradually grow into a nice-looking Christmas budget.

However, it would be unrealistic to suggest that this would be enough to cover the entire Christmas period. Maybe if you do not have the additional funds to take advantage of Autumn sales, then you need to borrow extra funds.

Take advantage of Autumnal and Black Friday sales

Black Friday is a traditional US holiday, taking place after Thanksgiving. However, now UK retailers and shoppers have jumped onto this significant increase in pre-Christmas sales by offering considerable discounts to UK shoppers.

Since it only lasts for 1-3 days, UK shoppers need to ensure they have the finances to cover the financial cost they would additionally spend.

Whether borrowed or saved, you don’t want to miss these huge discounts. The likelihood to secure a Christmas bargain won’t roll around afterwards!

If you have the funds, you can make savings by finding gifts at the lowest prices; however, this only works out if you repay any borrowed loans or credit cards right away.

Take into account your other expenses

Initially, when people consider Christmas expenses, they tend to think of all the gifts that they need to buy for their family and loved ones.

However, along with gifts come the food and decorations as well.

With so many more purchases to consider, make sure you can budget to cover all the Christmas essentials, including food and drink. The cheapest Christmas dinner in 2018 was £26.43.

Therefore, compile a comprehensive list of all the Christmas expenses, including food, drink and decorations to help you determine what kind of budget would be ideal for you and your household.

Christmas holidays

There’s no denying that the world lights up at Christmas time, with fabulous events being held across the globe.

Christmas only rolls around once a year, and the excitement builds to a crescendo come December. Of course, nothing is free; especially when travelling with children, this can become expensive.

Maybe you wish to stroll through the Winter Wonderland in London’s Hyde Park, or you want to visit one of Belgium’s spectacular Christmas markets.

If you must determine that you need to experience Christmas in another country, then ensure you budget well in advance.

Otherwise not only will you spend more at Christmas, but you will also overspend and be in deep financial debt for the new year.

About the author

David Bailey-Lauring is a single father of three boys so he knows what it takes to stretch a budget when it comes to family finances! David is a content writer and regularly writes about personal finance, education and lifestyle in the UK, USA, and Europe.

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Tim Spafford

Tim Spafford

Tim is a student who works hard to get a degree in finance and build a successful career in business consulting. Being a student and living in London Tim has a real-life experience in budgeting, saving, money making, traveling and having fun.