Where to Go for Affordable Loans this Christmas
14 Nov 2019
Christmas. It’s the most wonderful time of the year. That is if you’re not stressed that the cost of it all will financially wipe you out for most of the New Year. If you’re usually down to your last few euro by the end of the month, then the thought of the additional December bills probably has you coming out in a cold sweat. If you’re thinking about a loan to help you through the festive season, make sure you’re getting the most affordable loan you can. And one that is flexible and stress-free.
You should definitely not reach for the credit card, store credit, or even worse, moneylenders/payday loan companies for your Christmas loan. Not only are they far from affordable but the terms and conditions can be complicated and very inflexible.
So then, where should you go for the most affordable Christmas loan this Yuletide?
If it’s a flexible, straightforward, ethical and affordable Christmas loan you want, then your local credit union should be your first stop. Read on to find out why.
Affordable Christmas Loan Rates
Many credit unions offer a discounted rate for their Christmas loans. For example, according to our most recent statistics, the lowest APR rate on a credit union Christmas loan was 6.15%. The average rate was 7.44%.
When you compare this with credit card interest rates, between 13% and 23% in Ireland, it’s a no brainer. Or, if you choose to use store credit, the interest charged would be even higher. For example, one major, online department store charges a whopping interest 39.9% APR. Not what you want when you’re trying to get in the festive mood.
It’s worth checking with the credit union closest to you to find out what rate they are offering on their Christmas loan. Or even pop them a quick enquiry online today.
Stress-free Christmas Loan
Aside from offering very affordable Christmas loans, the credit union also provides one of the most stress-free loans you can get. This is because credit unions are very flexible. The loan repayments won’t be dictated by the credit union, but will worked out with you. Your loan officer will discuss with you how much you can afford to pay back per week or per month. If at any time you find the repayments are too much for you, there won’t be a problem. Simply contact your loan officer and they will work out a repayment schedule that will suit your financial circumstances a little better.
On the other hand, if you want to pay back the loan earlier than scheduled, there is no issue with this either. And you will never be charged any penalty fee for doing so.
Better than a Moneylender
A credit union Christmas loan is always, ALWAYS a better idea than a moneylender or payday loan company. With the credit union you will be getting an affordable Christmas loan. But with a moneylender, you can be charged interest rates as high as 288% in the Republic of Ireland.* Yes that’s right. And that’s just the rates that can be charged by the licenced moneylenders. (Those regulated by the Central Bank of Ireland). Unlicensed moneylenders could be charging much higher.
In Northern Ireland, a quick internet search showed us that interest rates of 161.9% were being charged by some payday loan companies. You could quickly find yourself in an unending cycle of debt where you may be forced to borrow again just to make the moneylender/payday loan company repayments. Avoid at all costs.
If you have had bad credit in the past, talk to your credit union in the first instance. They can at least let you know whether you might qualify for a loan before you go down the slippery slope of moneylenders. And if you are in receipt of social welfare, a large number of credit unions offer the It Makes Sense Loan. This is specifically for social welfare recipients.
So, if you’re looking for an affordable Christmas loan, there really couldn’t be a better, friendlier place to go this festive season than your local credit union.
You can even send a loan enquiry today by hitting the button below.
Submit an Online Loan Enquiry
*Central Bank of Ireland Moneylender Register, July 2019, inclusive of collection charge