Why take out a Christmas loan?
The expenses of French households on the occasion of the end of year celebrations are sometimes exorbitant. Household workers must have a sufficient budget to cover gifts, meals, decorations, etc. However, some find it difficult to finance their projects. Overview of the means of financing to welcome the Christmas celebrations.
Focus on Christmas spending in United States
Each year, French households allocate a large sum of money to preparing for Christmas.
An increase in Christmas spending
Each year, the budget allocated to the celebration of Christmas continues to increase in United States. Compared to the previous year, holiday expenses are estimated to be US $ 67 billion for 2019. On average, each household spends US $ 600 on the purchase of gifts, meals and entertainment. . In general, the French save or take out a loan to finance their Christmas projects.
Household financing means
In 2014, a survey revealed that around 36% of households finance their expenses by saving from the start of the year. The results of this survey also revealed that more than a third of households spend more than their financial situation allows them. To complete the various charges, nearly 10% subscribe to a loan.
Promotional offers for Christmas shopping
French households make their main purchases in November or during the first weeks of December. To help them, financial institutions provide them with promotional offers and attractive rates according to their needs. According to financial organizations, credit restructuring decreases at the end of October and increases from the beginning of January.
Taking out a loan: what you need to know
Before taking out a loan, you must find out about the formulas offered by credit organizations and the precautions to be taken.
Credits available to finance the Christmas holidays
Individuals have a preference for consumer loans . This type of credit is available in different formulas and is set at a maximum of US $ 75,000. This is the case for store credit, revolving credit, personal credit, Christmas credit, bank overdrafts, assigned credit, etc. It can be granted in the form of revolving credit paid into your account or put back in capital. The interest rate ranges from 2.2% to 3.6% on average.
The loan contract: the precautions to be taken
You must be planning in your steps. Taking out a loan must be done carefully at the risk of accumulating debt. To avoid bad surprises, it would be wise for you to establish a provisional budget or a balance sheet. For example, you can use planned spending and reasonable spending to fund the priorities on your list.