Finance Christmas gifts – what to look out for

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Christmas is the festival of love; however, in this day and age, it is also the festival of gift giving. You want to give your loved ones extra nice gifts to please them. However, the cost of the wishes often exceeds one's budget, whether it is new toys for the children, jewelry for the loved one or a shared experience. Fortunately, there is the possibility to finance particularly expensive gifts through a loan. In which cases this is advisable and what you should consider, we show you in this article.

How expensive should Christmas gifts be at all?

Basically, of course, you can never find the right answer for this. Statistically speaking, every German spends around 280 euros on Christmas presents. According to Statista, in turn, it was still 338.90 euros per capita in 2011, whereas in 2019 we are already at 475 euros. Specifically

  • Concert visits
  • and other attractions

are becoming increasingly popular. It goes without saying that these things are not exactly cheap. However, the first priority at Christmas should not be the value of gifts, but the contemplative togetherness, a pleasant and for all beautiful celebration.

Credit for Christmas – does it make sense?

In general, gifts should also always be based on one's budget. Should it be a larger purchase, so you can possibly also pool with other family members. Who is at short notice before Christmas in a financial bottleneck, which can fall back of course also on a credit. In addition, the money from a loan can also be used to organize a nice Christmas with a delicious meal.

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Financing Christmas gifts – what options are available?

If your own budget is not enough to make the gifts you want a reality, you basically have three options:

  • Purchase on installments
  • Use of overdraft facility
  • Taking out a consumer loan.

Each of these options has its own unique advantages and disadvantages. What they all have in common, however, is that the celebration and the joy of giving are not marred by a lack of financial resources.

Buying in installments

Large technology markets, but also more and more online stores and other providers, offer their customers the possibility to pay off the purchased products on installments. Often even a 0-percent financing is offered for this purpose. As good as these offers may sound, it should be remembered that even 0% financing incurs costs. For example, these costs are usually already priced into the products or additional fees apply. In addition, the financing of the product is often sold with additional services that you may not even want to have, such as credit cards or insurance policies.

What to look for when taking out a loan?

To take out a loan, no matter for what purpose, you must meet the following conditions:

  • at least 18 years old
  • fully legally capable
  • in possession of a German bank account
  • German registration address
  • Regular income (confirmed by documents)

To ensure that the joy of Christmas presents is not spoiled, you should consider the following points when selecting and applying for a loan:

  • Take out only as much money as you actually need.
  • The monthly rate must fit into your personal budget.
  • Choose a moderate repayment term – keep in mind that next year Christmas will be around the corner again.
  • Make sure that, if possible, unscheduled repayments are possible in the loan.
  • Consider possible coverage options via insurance in the event of unemployment, disability or death.

Conclusion on the financing of Christmas gifts

Christmas is especially about being together and spending time with the family. Nevertheless, gifts are also part of Christmas as we know it. If financial resources are currently insufficient to cover gift expenses, a consumer loan can help. So no one needs to let the financial situation take away the joy of celebration and gift giving. In particular, you should make sure that you can afford the repayment and that the loan is paid off by next Christmas, if possible.