Financing christmas gifts – what to look out for

Christmas is the festival of love; but in this day and age, it is also the festival of gifts. You want to give your loved ones extra nice gifts to make them happy. But often the cost of wishes exceeds your budget, whether it's new toys for the kids, jewelry for your sweetheart or a shared experience. Fortunately, there are options for financing particularly expensive gifts through a loan. In which cases it is advisable and what you should consider, we will show you in this article.

How expensive should christmas gifts be, anyway?

Basically, of course, you can never find the right answer for this. Statistically, each german spends about 280 euros on christmas gifts. According to statista, in turn, it was per capita in 2011 still 338.90 euros, whereas in 2019 we are already at 475 euros. Specifically

Are becoming more and more popular. It goes without saying that these things are not exactly cheap. However, the primary concern at christmas should not be the value of the gifts, but the reflective togetherness, an enjoyable celebration that is good for everyone.

Credit for christmas – does it make sense?

Gifts in general should always be based on your own budget as well. If it should be a larger purchase, then one can possibly also pool with other family members. If you find yourself in a financial bind on short notice before christmas, you can, of course, resort to credit. In addition, the money from a loan can also be used to organize a nice christmas with a delicious meal.

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Financing christmas gifts – what are the options??

If your own budget is not enough to make the gifts you want a reality, you basically have three options:

Each of these options has its own unique advantages and disadvantages. What they all have in common, however, is that the celebration and joy of giving will not be marred by a lack of funds.

Purchase in installments

Large tech stores, as well as an increasing number of online stores and other vendors, offer their customers the option of paying off the products they purchase in installments. Often, even 0 percent financing is offered for this purpose. As good as these offers may sound, it's important to remember that even 0% financing has a cost. Thus, these costs are usually already priced into the products or additional fees are charged for. In addition, the financing of the product is often sold with additional services that you may not even want to have, such as credit cards or insurance policies.

What should be paid attention to when taking out a loan?

To take out a loan, no matter for what purpose, you must meet the following conditions:

  • At least 18 years old
  • Fully capable of contracting
  • In possession of a german bank account
  • German registration address
  • Regular income (confirmed by documentation)

To ensure that the joy of christmas gifts is not dimmed, you should consider the following points when choosing and applying for a loan:

  • Only take out as much money as you actually need.
  • The monthly rate must fit into your personal budget.
  • Choose a moderate term for repayment – keep in mind that next year christmas will be around the corner again.
  • Make sure that, if possible, unscheduled repayments are possible in the loan.
  • Consider possible coverage options via insurance in the event of unemployment, disability or death.

Conclusion on the financing of christmas gifts

Christmas is especially about being together and spending time with the family. Nevertheless, gifts are also part of christmas as we know it. If the financial means are currently not sufficient to cover the expenses for the gifts, a consumer loan can help. So no one needs to let the financial situation take away the joy of the celebration and gift giving. You should pay particular attention to the fact that you can afford the repayment and that the loan is paid off, if possible, by next christmas.