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What Do Christmas and Line of Credit Have in Common?

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Christmas is coming, which could mean more strain on our budget. The global pandemic certainly didn’t help to prepare us financially for the upcoming holidays. If you haven’t started saving up, you’ll probably need a good plan to start saving quickly or an immediate cash boost to turn your Christmas plans into a reality. 

The big holidays of the year could empty our wallets quicker. For many people, December is the most financially stressful month of the year. When we’re low on money, many of us decide to borrow. Statistics show that borrowing from lenders in Australia increases by almost a fifth during the festive seasons. However, while borrowing is becoming a common thing to do, financial experts urge us to stay responsible - the decision to borrow should only be made after doing your research and comparing the terms of different lenders.

A Convenient Way to Borrow Money for Christmas Presents

If you haven’t started looking for presents or planning the holidays, you probably don’t know how much money you need exactly. This is where the line of credit comes into play. What is a line of credit you might wonder? 

A Line of Credit is a flexible online loan with a credit limit where you can withdraw from the account when you need money. It works just like a virtual credit card - access the funds when you need money quickly and pay back as you go. You only pay interest on what you borrow.

The Benefits of the Line of Credit

Whenever you need extra money or find a good deal for a gift you’ve been eyeing off, you can withdraw any amount over $50 from your available funds. The money will be transferred into your bank account, and you can use it right away. Similar to a credit card or a loan, you’ll need to make a minimum amount to pay back, but you can decide to pay it off as fast or as slow as you want. You have up to 36 months to payback.

A line of credit is a more proactive way of borrowing, and it is available at your convenience. While it can be used for one-off big purchases, it also can be used for lots of small purchases. It gives you security knowing that you have funds available for any future purchases or unexpectedly costs going above your over budget.

To put it simply, the benefits are:

  • convenience;

  • flexible repayment;

  • better for smaller purchases;

  • paying interest only on the amount borrowed;

  • saving time because there is no need to reapply each time you want to borrow.

Christmas Shopping Minus the Stress

Christmas shopping this year might be a little bit different from the last year. However, we want to make it just as special. If you are feeling stressed about shopping and you are not ready to do all the spending, start planning today. 

Set up the budget. Start planning your Christmas shopping budget by writing down everyone you are thinking about buying a gift. Next to each of the name put down the amount you want to spend on their present. You will have a rough estimate of how much money you will need. This takes some of the stress out.

Plan the gifts. Once you have the budget for each person’s gift, start coming up with ideas for the presents. Be thoughtful and creative and think of the things that person may need or use. 

Start shopping early. Starting earlier is going to eliminate that last-minute chaos and overspending. Having clear ideas and the budget makes the shopping process easier and faster. Plus, there are plenty of pre-Christmas sales for you to snatch up a bargain to make buying presents a little cheaper. 

Get some boost if needed. If there is a gift that’s over your budget, but you want to give something special to your family or a loved one, you may want to consider borrowing. A line of credit will be perfect for covering the amount you might not have at the moment. With a little bit of help, you can buy just the perfect gift.

Let’s hope these tips will help you make the holidays more relaxing!

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