The Secret to Stress-Free Holiday Spending
The average Canadian spends approximately 800 dollars on holiday presents every year
Oh, the holidays, a time for friends, family, food and giving thanks. Your wallet, on the other hand, might not be thanking you. The average Canadian spends approximately 800 dollars on holiday presents every years, not including things like filling up the tank, the grocery bill and festive parties.
Before you pull out your credit card, have you considered applying for a personal loan to help with holiday bills? You’re probably thinking to yourself: why should I get a personal loan when my credit card is conveniently in my back pocket? There are benefits of using a credit card: cashback, earning points and travel rewards are some of them. However, when it comes to your money and holiday debt, you might want to consider a personal loan.
Keep your credit card bill in check
When the holidays arrive, humans tend to throw everything out the window, including spending. However, kicking off the new year with a maxed-out credit card is not ideal. If you already have outstanding balances on your credit card, you might be fighting with long-term financial impacts from holiday spending for months.
Applying for a personal loan might be a smarter option for people who struggle to pay back their credit card in full each month. Lower interest rates on personal loans means you pay less for borrowed money.
Don't just throw it on credit
According to a 2019 poll, 57% of Canadians carry credit card debt from one month to the next. That's a lot of people who are putting their holiday expenses on credit and facing costly interest fees. As credit card debt is revolving, it’s not easy to pay your card in full when you have access to it 24/7.
A personal loan is not a form of revolving credit, which means once you’ve paid back the debt, you don’t have access to it anymore. Given this, they can be great for people who are trying to budget and better organize money. Once you’re approved for a personal loan, the interest rate, borrowing period and repayment terms are set in stone. Additionally, personal loans often have lower interest rates than most credit cards.
