How Should I Fund My Holiday Shopping?
Q: I've made my gift list and I'm checking it twice. But, I'm getting a bit panicky just thinking about how I'm going to pay for all this stuff! What's the best way to get me through this expensive season?
A: Relax! You can keep your budget and your sanity, too! You can do it without having to dip into your savings or rack up a high-interest credit card bill that you'll be paying off well into 2019. Instead, learn about your choices so you can spend responsibly and keep your holiday cheer all through the season..
Let's explore your options and take a look at why they may or may not be right for you.
1. No-interest credit cards
It's never a good idea to rack up debt. However, if you can get your hands on a credit card that offers an initial no-interest period, you can borrow the money to fund those purchases without it costing you a penny in interest.
Nice: This can be a perfect solution for you if you have an excellent credit score and concrete plans to pay back the bill before the zero interest period ends.
Naughty: Don't go this route if you have a poor track record of paying down your credit card bills. You might end up carrying that balance well after the intro period ends. You'll then be hit with super-high interest rates that will make your holiday expenses go much higher.
2. Personal loans
Anytime you need a pile of dough, you can stop by Horizon to apply for a personal loan. Our representatives are always happy to help, and you can walk out with the money you need to fund your holiday shopping shortly after starting your application.
Nice: Like all of our lending products, our personal loans have low interest rates, which makes the payback plan affordable for almost any budget.
Naughty: If you're already carrying a load of debt and unpaid loans, don't take out another one just to get you through the holidays. Consider lower cost gift ideas and focus on paying off debt.
3. Holiday Club Account
Don't wait until Black Friday to start thinking about your holiday shopping. Pay a little bit toward this expensive season all year long by opening a Holiday Club Account. This way, when November rolls around, you'll actually look forward to buying all those gifts instead of dreading it. Put the cheer back in your holiday season by opening a Holiday Club Account today!
Nice: Holiday Club Accounts offer you a way to pay for your holiday shopping ahead of the season, instead of playing catch-up on your bills in the coming months. It's the perfect way to take the stress out of the holidays!
Naughty: If you want to open a Holiday Club Account to help you make it through this season, you're a little late. But, it's never too early to start thinking about next year!
4. Deferred-interest financing
If you're buying several large purchases at big-box stores, consider signing up for the retailers' deferred-interest financing. Many chain stores offer customers this interest-free financing option so they can walk out with their purchase today, and pay for it tomorrow.
Nice: Deferred-interest financing works just like an interest-free line of credit, only it's exclusive to the store selling the item. If you don't like the idea of opening another credit card but you need that interest-free option, this can be the perfect solution for you.
Naughty: If you neglect to pay off your bill before the interest-free period expires, you'll be slapped with sky-high interest fees. Worse yet, you'll have to pay interest retroactively for the entire interest-free period.
If you're still struggling to get through the holiday season, we can help! Stop by or call us today. We'll show you how to stay in the black when your holiday expenses have you seeing red.