Financial Planning for Generation X & Y Women
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Expert Q&A Archive

Are there advantages in taking out a holiday loan?
Are there advantages in taking out a holiday loan?
Blake Allison:
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Holiday loans are short term loans that have similar features and characteristics as 'pay day loans'. Typically, they are targeted to individuals with less than perfect credit who may not be able to access traditional credit options such as credit cards, personal lines of credit, or even a home equity product. As a result, interest rates on Holiday Loans tend to be higher and have very short terms (the amount of time you have to repay the loan). Before seeking a Holiday loan - or any other type of credit - ask yourself why you are taking out the loan? Do you really need the money - or are you looking for cash to fuel your holiday spending? Remember, this is debt that you will have to pay off quickly. Start the New Year wisely and keep yourself debt free!
Kris Freeberg:
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It's better not to go into extra, special debt to finance holiday transactions. They're perfectly predictable and can be prepared for with proper discipline and foresight. If you're not prepared to afford the holidays and feel the need for the loan, do without this year and use the experience as motivation to prepare better for future holidays. Don't lapse into the potentially habitual cycle of financing the holidays with debt. If you read about the Great Depression, you'll find that those who experienced it recall their Depression holidays as some of their best, because they forced them to notice the holidays' true meaning. Review Seuss' book The Grinch Who Stole Christmas.
H. David Whalen:
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Try and have a "debt-free" Christmas in December, because you don't want the "boo-hoo" blues in January-March.
Gail V. Marquet:
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Holiday loans are not a good thing. Usually they come with very high interest rates. The best way to pay for holiday expenses is with previously saved cash.
Bettye J. Banks:
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I much prefer a "Holiday Savings Club" or "Holiday Savings Plan" You should be planning for Dec 2010 right now in December 2009! If you cannot afford to spend as you normally for the season, you probably need to "downsize" your holiday spending. Think of ways to make the holiday special without spending money you do not have.