Credit for Christmas gifts: a solution to choose with care

21 Feb

With the personal loan, the banks offer means to finance the famous gift budget. But beware, it is advisable to be very vigilant to avoid the multiplication of monthly payments.

 

Christmas shopping on credit is entirely possible

Having a gift budget is one of the concerns of French people as the end of year celebrations approach. Indeed, communication around Christmas shopping tends to start earlier and earlier. Black Friday, which is gaining momentum in consumer habits in France, is also no stranger to this phenomenon during which online shops and merchants are launching large-scale price reduction operations. As a reminder, this commercial event is only temporary and generally lasts only a few days or a few weeks. A limited timeframe that urges households to consume quickly.

During this period, it is tempting for a number of households to consider making loans to pay for their Christmas purchases which will be housed under the tree. If the liquidity is not sufficient, then the loan adapted to the purchase of consumer goods is the personal loan. It is quite simply a consumer credit that households can request to acquire what they want with the exception of a real estate purchase. With a minimum amount of $ 200, it can perfectly adapt to the goodwill of borrowers.

 

Avoid the accumulation of loan monthly payments

Avoid the accumulation of loan monthly payments

However, to buy gifts for the holiday season with a credit, the banks in this case offer very specific financing. In this case, households with this project to borrow for Christmas will benefit from a consumer loan qualified as “not allocated” to a particular project. In doing so, the supply of credit tends to include a higher interest rate than for a loan “assigned” to a car project or to renovations, for example.

The other increasingly popular alternative is revolving credit, also called revolving credit. Many brands offer this kind of financing through loyalty cards which may have a credit payment option. Nevertheless, households are advised to be careful before using this process since interest rates are very high.

Also, French people who wish to use credit to pay for end-of-year gifts must be particularly careful in order to avoid the accumulation of debts that could endanger the budget. Asking for a sum of money from a bank is thus quite feasible, but the good option is to check beforehand the adequacy of household finances for the release of a new monthly loan to repay.

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