How to pay for the holidays
Q: Help! I’m fretting over holiday expenses. How am I going to pay for the holidays and all this stuff?
A: Relax! You can keep your budget and your sanity, too! So, take a few minutes to learn how to spend responsibly this season.
Let’s explore some options:
1. No-interest credit cards
If you can open a credit card with an introductory no-interest period, you can borrow the money to fund those purchases without paying a penny of interest.
Nice: This option can be ideal if you have an excellent credit score and concrete plans to pay back the bill quickly.
Naughty: Don’t go this route if you have a poor track record for paying credit card bills. You might carry that balance well after the grace period ends and then get hit with high interest rates.
2. Personal loans
Anytime you need a pile of dough, you can stop by Elevate Credit Union to apply for a personal loan. Our representatives are always happy to help you!
Nice: Our personal loans have low interest rates, making 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 to get you through the holidays.
3. Skip-a-Payment
At Elevate Credit Union, we offer you our own gift this time of year: the option to skip a monthly loan or credit card payment to give you that extra cash flow.
Nice: When you choose Skip-a-Payment, you can pay for those presents without adding to your current debt. No high-interest bills to haunt you!
Naughty: Every Skip-a-Payment makes the loan’s term one month longer.
4. Christmas Club Account
Pay a little toward this expensive season all year long by opening a Christmas Club Account.
Nice: Christmas 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.
Naughty: It’s too late to open a [Christmas/Holiday] Club Account to help you through this season. But it’s never too early to start thinking about next year!
5. Deferred-interest financing
If you are considering 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, allowing them to walk out with their purchase today and pay for it tomorrow.
Nice: Deferred-interest financing works just like an interest-free line of credit, exclusive to the store selling it. If you don’t like opening another credit card but need that interest-free option, this can be the perfect solution.
Naughty: If you neglect to pay off your bill before the interest-free period expires, they’ll slap you with sky-high interest fees.