The holiday season has arrived, and that means more travel, more family gatherings and more sales. Even with the best of intentions, you can overspend, and January’s credit card bills can be very costly. A better approach to holiday spending is getting a low-interest loan that allows you to pay the money back over a longer period of time. The loan will cover qualifying expenses like entertaining, gifts, groceries and travel. While saving up over the course of the year is the best way to prepare for holiday spending, life does not always allow for that, and the buffer that a loan provides will ensure that the holidays are less stressful.
The following outlines five reasons to apply for a holiday loan.
Planning Ahead
If you often find yourself low on funds before the holiday season ends, you may not have an adequate budget. Taking out a loan will help you to plan for meals, shopping and travel and to stay on track. Even if extra houseguests and retail sales take you by surprise, you will be ready.
Staying on Budget
Holiday loans typically have lower interest rates than many credit cards, often about 6 percent. This results in lower monthly payments. If you use high-interest credit cards to finance your holiday season, you can easily destroy your budget. A low-interested personal loan will keep your payments predictable, and you will not have financial regrets in the months ahead.
Knowing the Spending Limit
While a loan will help you manage your holiday expenses, you should ensure that your monthly budget can withstand the extra payment before you apply. If you think there will be too much strain, you will need to adjust your plans. This can mean buying fewer gifts, not attending as many celebrations and possibly staying home instead of traveling. You should be able to pay off the loan in less than a year in order to be prepared for the next holiday season.
Gaining Resolve
The biggest temptation during the holidays is the many retail sales. When you take out a loan, you will have to think about your finances and resolve to set firm spending limits before the season starts. Only purchase what you actually need, and do not add any extra debt that you will not be able to handle later. This will help you the rest of the year because you will not be paying off Christmas in August when you need to be focused on back-to-school expenses.
Reducing Stress
Once you apply and are approved for your holiday loan, you can create a payment plan that works with your monthly budget. After securing the funds, you can follow your plan and enjoy the holidays with your family and friends. Travel and giving gifts is less stressful when you know there will not be a huge bill waiting for you in January. The holidays are about fun, love and being together. Your finances should not get in the way of that.
If you are unsure of how to finance your holiday season, the experienced staff at DR Credit is always available to help you explore your options and find the right solution. You can apply online, get an answer quickly and have your funds in no time.
