Tips To Arrange Cash Before The Christmas Celebration

 

Christmas is one of the most expensive times of the year, and amid the soaring prices, people are worried about getting by. For all the savings you have been making throughout the year, it is quite obvious that you are not so sure about it being enough to meet all expenses without borrowing at all or with little borrowing.

Food is what predominantly eats up your budget, followed by parents and Christmas presents. In the festive season, the prices are already hiked to make huge profits. With this fact, families are always warned to stay away from big brands. Yet, the celebration does not fit in your budget.

How to get cash before Christmas if you need

When you do not have enough money to meet all expenses, you will have to cut back on your budget. Even though you do not spend money on large gatherings and presents, the budget blows up by the end of the festival. Thankfully, there are some options that you can arrange cash before the Christmas celebration:

·         Use credit card

Credit cards can come in handy if you need a small sum of money to tide over. However, they must have a balance. Credit cards are a loan, so you will have to pay back the debt on the due date, but you can avoid paying interest if you clear the balance within the grace period. Credit cards are not meant to fund more significant purchases because you can find it hard to pay them off on time.

·         Universal Credit emergency loans

If you need money and you do not want to pay interest, use Universal Credit emergency loans. You can borrow even up to £1,000. These Christmas loans will help tide you over when you are waiting for the first benefit payment.

Although they do not work like standard loans, you are still responsible for paying the Department for Work and Pension back money. While repaying the loan, you will get less money. So be careful about your budget. The amount of advance you can qualify for depends on the Universal Credit you are entitled to.

·         Christmas loans on benefits

If you are unemployed and receiving benefits, you can apply for Christmas loans on benefits from direct lenders. A few lenders might approve your application based on the amount of benefits you receive. However, if you have a passive income source, make sure that you club that into benefits.

This will help you borrow larger amount. Do research before applying for the loan because interest rates vary. Be wary of fees. These loans are repaid in a lump sum, so make sure the payment can fit into your budget. If you are on benefits and need a loan today from a direct lender, try to check if the lender lets you pay down in weekly instalments.

·         Borrow cash at low rates

Interest rates on a loan from a private lender can be high regardless of your financial situation and credit score, but there are some ways to borrow cash at low rates. You can borrow money through a 0% credit card. It will let you avoid paying interest, provided you settle the balance within the given timeframe.

If you are taking out a bad credit loan, make sure you check interest rates on comparing sites. You can also apply for a card at a lower interest rate. Ask lenders if you are eligible for the best card rates.

The bottom line

Christmas celebration does not need to be expensive at all, but since the prices are rapidly soaring and retailers hike prices a month before Christmas, it can certainly be challenging to get by. A rule of thumb says that you should stash away as much as you can, but chances are it is not sufficient to meet all your expenses.

In this situation, you can think of borrowing cash at low rates. Compare interest rates so you can choose the best deal. Use your credit card if you can pay back the money in full. Find out if you are eligible for cheaper credit card rates. Look for Universal Credit if you need money for unexpected expenses.