How Should I Fund My Holiday Shopping?

Nov 15, 2018 | Q&A

Q: Help! I’m fretting over holiday expenses. How am I going to pay for all this stuff? 

A: Relax! You can keep your budget and your sanity, too! Take a few minutes to learn how you can 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 end up carrying that balance well after the grace period ends and then getting hit with really high interest rates. 

2.) Personal loans 

Anytime you need a pile of dough, you can stop by CSE Federal Credit Union to apply for a personal loan. Our representatives are always happy to help you! 

Nice: Our personal loans have low interest rates, which make 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. 

3.) Skip-a-Payment 

At CSE Federal Credit Union, we offer you our own gift this time of year: the option to skip a monthly loan 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. Interest continues to accrue, check details.

4.) Christmas Club Account 

Pay a little bit 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 up a Christmas Club Account to help you make it through this season. But, it’s never too early to start thinking about next year! 

5.) Deferred-interest financing 

If you’re 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 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 it. 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. 

Your Turn: How do you pay for your holiday expenses? Share your method of choice and tell us why it works for you in the comments below.