We are fully entering the Christmas shopping period. This most pleasant period is also sometimes feared because it corresponds to significant expenses.
The average French budget is indeed between $ 50 and $ 200 per child and between $ 150 and $ 500 per adult. If we consider an average family of two adults and two children, the budget can therefore range from 400 USD to 1400 USD , or even more … just for gifts.
To this is added the cost of meals, as well as the cost of all trips to join the family or families, without forgetting all the small expenses such as the Christmas tree, decorations, costs related to New Year,… and sometimes even ski holidays or abroad. In short, the list is long and the bank card is in great demand.
The savings of some may be sufficient to cover these expenses, and the 13th month or the end-of-year bonus for certain employees may bring the last dollars necessary to make up the Christmas budget.
But for some, this will not be enough. One possibility is to take out a small loan to finance these expenses.
What credit for Christmas?
The banking establishments do not strictly speaking offer a credit allocated to Christmas expenses. There are three possibilities to give the last boost to Christmas shopping: a sign card, personal credit or revolving credit.
The store card
Almost all major brands offer it, the store loyalty card accompanied by payment in installments at no cost or with interest.
This card is very attractive and many subscribe to it for a simple reason. With a few documents (generally identity card and sometimes payroll), the borrower can access it. It is proposed very naturally and removes any constraint of contact with a credit institution. In short, it’s very simple and quick.
However, we will have to be vigilant. Indeed, the store card forces the borrower to make his Christmas purchases only in this store. Avoid taking one card per sign as this only increases the risk of poor budget management.
Although this card is stamped in the colors and brand of the brand, there is always a credit institution that provides funding and management. This is why the borrower must also be careful about its subsequent use after the holidays.
The first use may correspond to a payment in several installments at no cost, but on reading the contract, the borrower may also discover that the following uses will be accompanied by the payment of interest (sometimes high) and possibly administration fees.
Conclusion, the subscription to this card can be saving in the rush of Christmas shopping, but you have to learn to use it using common sense.
This type of credit is also often used at Christmas time. Unlike the store’s loyalty card, it gives you all the freedom to buy in any brand or on any site, since the borrower has the amount he requested in his bank account.
At this time of the year, this type of loan can be judicious because it also limits the amount of expenses.
Prior to taking out the loan, the borrower will have agreed with his bank on an amount of personal credit, and he will receive this amount and not one euro more. It is therefore impossible to allow oneself to be overtaken by madness or negligence. The amount in itself is not very large, the loan will be made for a very limited period, ideally 12 months.
However, be careful, there are incompressible deadlines for obtaining the amount from the borrower’s current account. It is therefore imperative to anticipate the request for credit (ideally two months before for more security and less disappointment).
To know the cost of personal credit, you can use our credit comparator which is updated in real time.
Last type of credit that can be used, revolving credit can be a useful ally. Like personal credit, it is limited to the amount subscribed. There can therefore be no unforeseen overrun of your expenses. It is preferable if the borrower has a very vague idea of his Christmas budget, which can be the case if he has to make frequent stays or a trip. In this case, he will benefit from a reserve which he will use, either in part or in its entirety.
But beware, the interest rate is much higher. For an identical loan amount, it would therefore be better to privilege personal credit. If the uncertainty of the amount of the expense is not too great and the borrower still has a vague idea of the amount of the Christmas expense, it is sometimes better to take out a personal loan, even if it means borrowing too much and not spend, the difference in interest rates can be so great. So don’t hesitate to ask your bank for simulations.