Has the thought of personal loans been on your mind lately? If so, you’re not alone. The National Retail Federation expects holiday spending to grow this year to approximately $730 billion dollars. A recent survey by CNBC found that 45% of credit card holders are willing to take on more debt during the holidays. That number increases to 52% for millennials. This can all add up to a lot of high interest debt that lingers well into the new year. Many shoppers are looking for a better answer to holiday spending. If you don’t want to rely on credit cards to finance your holiday cheer, we have a much better solution. What’s the answer? A personal loan. Personal loans are unsecured fixed-term loans that you can use for just about any purpose.
Personal loans for holiday spending
Personal loans can typically provide holiday shoppers with a much lower interest rate than credit cards, as well as a lump sum to help you stay within your budget. Local credit unions, including Choice One Community Credit Union, provide members with competitive personal loan rates, as well as flexible terms. Choice One’s personal loan features terms of up to 72 months for amounts up to $10,000. Some lenders even offer holiday specific loans, such as Choice One’s Holiday Bucks Loan. The Holiday Bucks Loan is simply an unsecured loan for up to $2,500 featuring a low fixed interest rate for a 12-month term. Borrowers with good credit can qualify for the best rates on personal loans and make fixed monthly payments over a specific period until the loan is paid off.
We all know that the holiday season doesn’t come cheap. A personal loan can help you eliminate the surprise of a massive, high-interest credit card bill that shows up in January. Saving on interest with a low-rate personal loan can mean big bucks during a pay-back period. When you are approved for a personal loan, you receive the loan amount in a lump sum. When you decide on your holiday budget and apply for a personal loan, you will be more apt to stick to that budget when you have cash in hand. It will help you avoid the temptation of overspending with credit cards.
Factors to consider when comparing personal loans
- Interest rate – The rate on personal loans are typically much lower than interest rates on credit cards. Be sure to compare various loans, including personal loans from your local credit union. Saving on interest is a smart option when you need to take on debt to finance your holiday.
- Loan fees. Be sure to compare any fees involved with the personal loans you are considering.
- Maximum loan amount. Is the maximum loan amount enough for your holiday spending needs? You don’t want to have to pull that credit card out at the last minute, so be sure you are borrowing enough.
- Maximum term. Does the personal loan term make for a monthly payment that fits your budget? Most lenders, including Choice One, offer various loan terms to fit your needs.
It’s here, the season of gift buying, party hosting, decorating and travel. If the holiday season seemed to sneak up on you and you haven’t saved for your holiday spending needs, don’t stress, a personal loan can provide you with the cash you need. A personal loan can help you bridge that gap between your holiday savings and your spending needs. You can apply for a personal loan quickly and easily online at Choice One Credit Union. Our quick approval process will have you tackling your shopping list in no time. Not a member? You can learn more about membership online as well.
In addition to being a great option for your holiday spending needs, making monthly on-time personal loan payments can also help you to build a good credit history. A personal loan or holiday loan can help you celebrate the season free of the financial stress of high-interest credit card bills. Read more blogs like this on the Choice One website.