Need Help Covering Seasonal Expenses? Consider a Holiday Loan
The holidays are an expensive time of year, from decorations and travel to big family meals and gifts for everyone on your list. And if savings isn’t enough to pay for all that seasonal spending, you might want to consider a small holiday loan to help cover costs.
What Is a Holiday Loan?
A holiday loan is an unsecured personal loan used specifically for holiday expenses. This means you get a lump sum of cash up front and pay it back in fixed monthly installments.
Unsecured loans (also called signature loans) don’t require any collateral, meaning your house and car stay out of it. Best of all, a fixed rate and term mean you’ll know exactly what your payment is, when the loan will be paid off, and what it will cost you.
What About Credit Cards?
Credit cards work well for everyday expenses you can pay off each month. But because card interest rates are typically higher than personal loan rates, putting the holidays on a credit card can cost you more in interest charges.
Credit cards also make it easy to spend more than you planned and then get stuck paying down a high-rate balance with no clear end date – so think twice before you swipe.
Tips to Help You Borrow Smart
Before you get a holiday loan, here are some expert tips to keep in mind:
- Decide on your holiday budget.
Know your ideal loan amount ahead of time so you don’t borrow more than you need. - Determine what you can pay monthly.
Choose a payment that fits comfortably with your other recurring bills and expenses. - Choose the shortest term you can afford.
A shorter term means less interest overall and a faster path to being debt-free. - Crunch the numbers.
Explore our loan calculators to get a better idea of rates, terms and monthly payment options. - Don’t assume the answer is no.
If you’re worried about your credit or don’t think you’ll qualify, talk to us anyways. We’re here to help find a solution for you, with no judgement and no hassle.
Start Saving for Next Year
Get a head start on next year! Start a holiday fund to save specifically for holiday expenses. Our Super Saver account provides extra dividends on the first $2,500, with one penalty-free withdrawal per year.
You can set up automatic transfers into your account every month to make saving even easier. Even $25 or $50 a month can make a big difference at the end of the year when it’s time to start shopping for holiday gifts.
The Bottom Line
When seasonal spending adds up to more than your budget can handle, a small holiday loan can be a smart way to responsibly cover the costs. With a lump sum of cash at a lower fixed rate, you could have the money you need to spread some joy without wrecking your budget.
*APR = Annual Percentage Rate. Rates shown are “as low as” and subject to change. Loan approval and terms depend on creditworthiness.
