Connect with us


Should I Get a Personal Loan to Cover Holiday Spending?

purity muriuki



pexels photo 7731323 scaled

Ah, the holidays – that magical time of year when we strive to achieve the perfect mix of gift-giving, feasting, and merrymaking. It’s a season that can bring joy and happiness, but also a fair amount of financial stress. If you’re one of the many people whose holiday spending is making your wallet feel lighter than usual, you might be tempted to take out a personal loan to help cover the costs. But before you reach for that loan application, the experts at Achieve have some advice about whether this is the best option for your festive finances.

Beware of Interest

First things first: it’s important to remember that even the best loans come with interest charges. That’s right, folks – there’s no such thing as a free lunch, or a free loan for that matter. So, while a personal loan might seem like a quick and easy way to access fast cash, it’s essential to keep in mind that you’ll be paying back more than you initially borrowed. Talk about a holiday hangover!

Run The Numbers

Now, you might be thinking, “But I need that extra cash to make my holidays truly special. Surely a little interest won’t hurt!” Well, let’s dive into the numbers to see if a personal loan is really the way to go. Suppose you take out a $5,000 loan to cover your holiday expenses, with an interest rate of 10% and a repayment term of 36 months. Over the life of the loan, you’ll end up paying $6,622 – that’s a whopping $1,622 more than you initially borrowed! Do those extra presents and decorations really seem worth it now?

Consider Alternatives

Instead of diving headfirst into debt, consider some alternatives to help you cover your holiday spending. First, take a step back and reevaluate your budget. Do you really need to buy gifts for every cousin twice removed, or can you cut back on the number of presents without turning into the Grinch? Don’t forget that the holidays are about spending time with loved ones, not outspending your bank account.

Next, get creative with your gift-giving. Sure, that shiny new gadget might be at the top of your loved one’s wish list, but there are plenty of thoughtful, budget-friendly options out there that won’t leave you drowning in debt. Handmade gifts, experiences, or simply spending quality time together can be just as meaningful as extravagant purchases – if not more so.

Boost Your Income Instead

Another option to consider is finding ways to increase your income leading up to the holidays. Whether it’s taking on a part-time job, selling unused items, or offering your services as a freelancer, there are plenty of ways to earn some extra cash without resorting to a loan. Remember, every dollar you earn is one less dollar you need to borrow.

Shop For The Money Too

Of course, we understand that sometimes life happens, and a personal loan may be the only viable option for covering your holiday expenses. If that’s the case, make sure you shop around for the best loan terms and rates. Keep an eye out for hidden fees and prepayment penalties, and read the fine print carefully. After all, you don’t want to be caught off guard by any unexpected surprises come repayment time.

Have a Plan

Finally, if you do decide to take out a personal loan, commit to a repayment plan that works for you. The faster you pay off your loan, the less interest you’ll end up owing. It might mean tightening your belt for a few months, but in the long run, your future self will thank you for it.

In Conclusion

While a personal loan might seem like an easy way to cover your holiday spending, it’s important to weigh the pros and cons carefully. Remember that borrowing money comes with interest charges and should be considered a last resort


I'm a passionate full-time blogger. I love writing about startups, how they can access key resources, avoid legal mistakes, respond to questions from angel investors as well as the reality check for startups. Continue reading my articles for more insight.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Top of the month

Copyright © 2023 STARTUP INFO - Privacy Policy - Terms and Conditions - Sitemap - Advisor


We are a global Innovative startup's magazine & competitions host. 12,000+ startups from 58 countries already took part in our competitions. STARTUP.INFO is the first collaborative magazine (write for us or submit a guest post) dedicated to the promotion of startups with more than 400 000+ unique visitors per month. Our objective : Make startup companies known to the global business ecosystem, journalists, investors and early adopters. Thousands of startups already were funded after pitching on

Get in touch : Email : contact(a) - Phone: +33 7 69 49 25 08 - Address : 2 rue de la bourse 75002 Paris, France