The actual Annual Interest Rate (APRC) for the cash loan offer is 53.06%. Contract duration: 3 years, total loan amount: USD 2,000.00. The total cost of the liability paid in equal (annually) installments: USD 131.68, the total amount to be paid: USD 2,131.68. Repayment is in 36 equal (annuity) installments. The calculation was made on March 30, 2020, on a representative example.
Minimum and maximum repayment period: min. 3 months, max. 10 years
Maximum APRC: 120.28%
Christmas is an extraordinary time that requires an appropriate setting. We stand on our heads to plentifully set a festive table, beautifully decorate the apartment, and give our loved ones dream gifts. It costs everything.
When the account is empty, the first thing we think about is credit. We advise on what to look for when taking out a cash loan before Christmas, so as not to enter the new year with debts.
Cash loan for the holidays
Cash loan allows you to quickly realize your dreams and plans. It is no wonder that it is this financial product that enjoys great interest every year before Christmas. However, you should remember that a cash loan for the holidays, like any other loan, comes at a cost and additional fees.
That is why it is so important to carefully analyze its costs when choosing a holiday cash loan. Cash loans for Christmas can save us from oppression and make Christmas truly magical, but it can also cause us financial trouble, the consequences of which we will feel shortly after Christmas.
How much do Poles spend on Christmas?
Every year, at the turn of November and December, research is conducted into how much we spend on organizing holidays. According to a report prepared by Delloite last year, each household spent about USD 1,168 on holiday shopping. It is 5.8 percent more than in 2017 and probably a few percents less than this year.
Christmas expenses are not only decorations, gifts and food, but also renovations that we want to finish “for the holidays”, as well as cosmetic treatments and new clothes, thanks to which we will be better presented at the Christmas table.
Who is a Christmas loan possible for?
Cash loan for the holidays is an offer prepared for people whose budget is barely reached, which makes the organization of the star questionable, but at the same time for those who are absolutely convinced that when the holidays are over and life goes back to normal, they will not have problems paying back the loan.
Therefore, income plays a key role here. Holiday credit should be chosen by those with regular income. It is not a good idea for people with a low and irregular income to take out a loan, because then there is a fairly high risk that they will not be able to pay the debt on time.
Where can you find the most-favorable Christmas credit offers?
Nothing prevents you from using money borrowed from a bank or loan company to make your Christmas dreams come true. However, it is important to do it wisely and read it carefully before signing the loan agreement.
It is best to start looking for a loan by looking at the bank’s offer in which we have an account. The offer prepared by our bank may be cheaper than the rest available on the market, and the waiting time for money much shorter. However, if our bank is not able to offer us a loan, it is worth reviewing the offers of other institutions.
A cash loan comparison tool will be helpful, which compiles the bank’s loan proposals for the indicated amount and repayment period, so you can easily and quickly compare which one is the most favorable from our point of view.
In the same way, you can put together proposals of loan companies. It will take only a few minutes, and thanks to that you can save a lot because the differences in the case of the cheapest and the most expensive option can be up to several hundred dollars.
How to take a Christmas loan responsibly?
The main thing is not to act hastily. Therefore, think about whether you really need a loan for the organization of holidays. If you think so, start looking for a favorable loan offer. Remember to pay special attention to such elements as:
- Loan interest rate – defines the costs of interest on the requested amount of the loan.
- Commission – a one – time fee added by the bank/loan company when the loan/loan is granted.
- Preparation fee – usually required by loan companies. This is a fixed amount that must be paid in connection with the loan.
- Loan insurance – more often banks, rarely non-bank institutions, require customers to take out loan/loan insurance.
- Fee for postponing the repayment date – an extension of the repayment date specified in the contract is associated with an additional fee.
- Actual Annual Interest Rate (APRC) – a parameter that takes into account the nominal interest rate and any additional charges (the lower the APRC, the cheaper the loan).
Beware of offers that at first glance are very attractive and admittedly have a low-interest rate, but whose additional costs are very high. Check and possibly ask about all additional costs and fees related to taking out the loan to avoid later unpleasant surprises.