Short Term Loans for Christmas Presents, Why This is a Bad Idea

Many people like to take the opportunity of the Christmas season to send gifts to all their friends and family members. Sending Christmas gifts can become a financial burden if you use a loan to pay for them. It is a bad idea to take out a loan to buy an expensive Christmas present just to impress someone. taking out a loan can be risky because you never know if you are going to lose your job because of the economy recession.

Even if you can afford to take out a loan, it is an added expense that is unnecessary for you to bear every month. It will be better to save the extra money leftover in your monthly salary in your bank account to buy important things like house, education, cars and etc rather than using to pay the Christmas gift loan. Loans or credit cards should only be taken out if you need the money to settle some important financial problems.

For Christmas gift giving, you should try to buy something within your budget based on the available cash in hand. It is very easy to find a Christmas gift that is cheap at various stores because it is the time when many stores are having discount sales. Every category of gifts are getting big discounts in the month leading to Christmas so there will be plenty of choices for you.

Making a budget planning and determining how much you can spend on Christmas gifts is the first step to take if you decide to send gifts to a large number of people. There is no need to feel bad about disappointing your kids for not able to buy the expensive toy or gadget that he wants. Many parents like to watch their kids opening Christmas presents and see how happy is their reaction when they receive presents that they have always wanted.

However, using the money to pay your bills is actually what you should be putting in priority. Your kids will still be happy if you buy them something else cheaper. You should start planning what Christmas gift to buy many months before Christmas approaches so that you have time to save money to buy the expensive Christmas present for your kids.

It is all right to buy any Christmas present if you can’t afford it. You can let your friends or children know the reason why you aren’t buying any Christmas present and they will understand your financial difficulty. As a rule of thumb, you must be able to pay back the loan without any struggling if you still feel that it is necessary to take out a loan. You must make sure you have some extra money left after paying the loan.