Is Christmas spending completely incomprehensible? Here’s the guide to where to get the cheapest Christmas gift loans.
Christmas Eve is approaching with storms and that means for most a red-hot economy. As you know, Christmas is supposed to be the feast of families, but for many it ends up being the plague of money.
Filled to the brim with expenses
The month of December is filled to the brim with expenses that we do not otherwise have in the remaining months of the year. Christmas’s biggest expense is represented by the majority of Christmas gifts. According to Good Finance, the Danes will buy an average of 11 Christmas presents this year, and that is something that is noticeable on the economy.
In the effort to pamper their loved ones, more and more Danes are taking advantage of the opportunity to lend to Christmas presents. The market for Christmas loans is large, and if you do not think you can end up in financial storms.
We give you an overview of your options when financing your Christmas gifts. Thus, we have compared the financing options in the most well-known Danish businesses, as well as looked at what other alternatives you have to please your loved ones, without ending up in inconceivable debt.
The Good Lender best on electronics
According to Good Finance, electronics are high on the men’s wish list in particular, while computers and games, rank first on the gifts for the big kids. Electronics are expensive, which is why the country’s largest electronics chains are also ready with financing solutions for you.
The clear first place is taken by the Elgiganten. If you compare the business financing purchases of 5,000 kroner over 6 months.
If you finance your electronic Christmas gifts through the Good Lender, you completely avoid interest. Thus, you only pay one creation fee. The total credit cost thus amounts to only DKK 399, which is due to the cost of creating the loan.
Finance the housing gifts free of charge
If you are considering pampering the wife with a new sofa, dining table or other good for the home, there are favorable options for financing. If you take a look at the major furniture chains’ financing offers, you can see that it is possible to buy the Christmas presents on the block without having to pay for it.
At Good Finance Furniture, you can finance the long-desired leather sofa. In other words, a purchase of DKK 5,000, which is financed over 6 months, gives you a loan with DKK 0 in credit costs.
Looking at the other furniture chains is a very advantageous option. With the same loan model you have to pay over 500 rents, while Good Lender is at 305 kroner in credit costs.
Missing opportunities on travel
In Denmark we have many cold months, which is why more of us want to travel down to southern skies to get the heat. If you are planning on giving a Christmas gift, do not expect travel companies to stand in line to help you financially.
Thus, from our comparison of the travel providers, it was only possible to find two actors offering financing for the trip. If you do not have the finances to buy the trip in cash, it is either Bravo Tours or Primo Tours that you should go to.
With these travel companies, it is possible to finance the trip free of interest for the first 12 months. On the other hand, there are other costs, so that on a purchase for 5,000 kroner must pay 400 kroner in credit costs, if the loan is paid over 6 months.
Other loan options
Before you go down and make a Christmas gift on the block, it is a good idea to look into your alternatives. The market may appear opaque and therefore it may seem incomprehensible to have to compare the various loan providers.
Of course, it is obvious is of course to apply for your own bank. However, it may not always pay off as the costs in the banks may be higher than the ones you can get rid of in business.
A comparison of a consumer loan with the three largest banks in Denmark Honest Bank, Coop Bank and Thrift bank shows that you have to pay between DKK 714 and 864 in credit costs for the loan. Thus, the well-known banks’ consumer loans are not predominantly cheaper compared to the business loan offers.
Mortgages can be the cheapest
Lending is usually something that is not recommended by most experts. This is because you have to quickly repay the loan amount, and if you can’t, higher fees are added. If you know with 100% certainty that you can repay the money within 30 days, the quick loans may be the best alternative.
Free loan offers are available to various mortgage loan providers. That is, you have no costs associated with the loan.
Thus, only Good Finance can uphold the financing offer. However, it should be pointed out that it is not possible to borrow up to 5,000 kroner from the quick loan providers. At Good Finance you can borrow up to 4,000 and 3,000 kroner respectively the first time you borrow.