Beaming children's eyes under the Christmas tree or an enthusiastic glow in the eyes of loved ones are reason enough for many people to dig a little deeper into their pockets and make expensive gifts at Christmas. If one knows, with which one can make the partner a joy, looks often not so exactly on the cent. That is in principle naturally praiseworthy. Nevertheless, financial experts advise against buying gifts with a Christmas loan. But why is this so? And what to look out for if it is not possible to purchase the expensive and eagerly awaited gift without financing?
Every loan requires a real equivalent value
Consumer protectors and financial advisors point out again and again that one should take out credits only for durable values. Of course, this includes large purchases such as real estate or a car. Even more cost-intensive household appliances or even a fancy home furnishings can be financed in an emergency, provided the conditions are right. The situation is different for desired objects of temporary value. A vacation trip or designer clothes should therefore not be financed. Here, the real value the borrower receives for their financing is short-lived. As a guideline, you should at least use the financed item over the term of the loan. This is usually not the case with short-lived purchases or a vacation trip.
It is quite similar with Christmas gifts. Of course the presentee is pleased about the longed gift, for which he had to wait perhaps for a long time. But for the borrower, unfortunately, the equivalent value is short-lived joy. He must repay his loan without creating a permanent tangible asset for himself in return. With this in mind, consumer protection experts are skeptical about financing Christmas gifts. But of course there are exceptions.
Small sums and short terms are better for a loan at Christmas
If you want to give your loved one an expensive piece of jewelry or if your partner has long wanted a fancy smartphone or a modern digital camera, you would like to fulfill this wish this coming Christmas. If you don't want to spend your financial reserves on this, or if they are insufficient, consider financing it. If you have a regular income and if your creditworthiness is proven by the Schufa, there is nothing against a loan at Christmas. But make sure that the loan installment fits into your monthly budget in the end, so that you can pay it reliably and safely over several months.
It is very important to pay attention to a low loan amount and a short credit period. Do not take out more money than you absolutely need, and choose best a term over several months. Some banks offer small loans over a few 1.000 euros on, which can be well suited. Provided you choose a small loan with a short term, you have a good chance of being debt-free again after a few months. A contract with a free special or total repayment right can also be a variant. You can repay such financing at any time without prepayment interest, as long as your financial situation allows it.
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Comparing loans saves cash on interest rates
Of great importance is the cost comparison. Be sure to check which bank offers the best terms for your financing. During the hectic holiday shopping season, many retailers are offering to buy on credit, enticing you with seemingly attractive interest rates. Be sure to consider such offers in comparison with standard bank offers. A loan calculator is a good way to get a comprehensive overview of the best conditions on the market with just a few entries. You enter only the desired loan amount and the term and get a compact overview of the most favorable banks. With this comparison you can quickly and transparently check who charges the lowest interest and fees for your individual financing. You can filter the offers according to criteria that are important to you. Here's how to identify the providers that allow you to make a free special redemption with little effort. From the comparison, you can apply for your financing online instantly. Money arrives in your account within days, so nothing stands in the way of fulfilling your Christmas wish.