Every year Christmas is here, every year we know it will be here, and we even know the date, and yet many of us, do not plan for it; plan in the sense of saving money for Christmas gifts and the whole event.
Then there is the issue of how much we spend at Christmas, and if we over spend. Without a set budget and gift list, we can tend to overspend. Usually the overspending is in the form of credit, and using credit cards.
Then in January we have the bills come in and to our shock and horror, we have spent more than planned.
Ideally if we were to plan things out, we would save money each month for 10 months that we would then spend on Christmas gifts and the festive season. However, again, not many of us are that organised.
Then there is the debate over taking out a loan for Christmas.
This debate has been going on for a long time, with both sides presenting their arguments.
Why borrow when you can save?
Why go into debt for the holiday?
The fact is we do go into debt for Christmas, again by using credit cards, catalogues, store cards, and overdrafts.
The other side of the argument is at least if you take out a loan you know exactly how much debt you will have, how much your Christmas budget is, and when you will have the loan paid off.
The reality is what is the difference of paying £100 a month to a loan payment, as opposed to trying to pay yourself £100 a month to save for Christmas???
You are still paying £100 a month.
Some will consider a debt consolidation loan after Christmas to pay off the Christmas bills and debts. Is this not the same as taking out a loan to fund Christmas.
The debate will continue, however, for some taking out a loan for Christmas is a way of getting a handle on what they have to spend, and also a time frame as to when the Christmas bills will be paid in full.