- Some entities market loans to cover the extra expenses of the holidays. Money can be used for food and gifts.
- 500 euros on average will be spent by Spanish families to celebrate these holidays, according to the CECU.
- View or download the PDF of the December edition of My Pocket.
Christmas is accompanied by extra expenses. In fact, traditionally companies have paid their workers with a special payment at this time of year, precisely to help support the account that adds gifts, toys, dinners, meals, leisure and other activities or actions of these days.
According to the Confederation of Consumers and Users (CECU), Spanish families will allocate an average of 500 euros for these holidays and for the majority will involve a disbursement similar to 2013. The result of the survey conducted by the CECU on consumption habits at Christmas is more stable than in 2012 and 2013 when most of the respondents indicated their intention to spend less than the previous year.
Spanish families will allocate an average of 500 euros for these holidays, an expense similar to 2013 For businesses, Christmas has always been one of the best times for business. And it also begins to be for financial institutions, which little by little become more flexible in the granting of loans to their clients. The prolongation of the crisis, the high rate of unemployment and the cut in salaries has forced to look for formulas that boost consumption and, therefore, the margins of the results.
Throughout the year, personal financing lines of small amounts, fast and easy to obtain, can be found throughout the year. But some banks or financiers have also designed specific programs for Christmas.
This is the case of the Financial Company of El Corte Inglés -owned by Banco Santander-, which began at the beginning of November to grant advances, from a minimum of 100 euros and up to a maximum of 1,200, to be used in group establishments and with the possibility of to postpone the payment.
The result is being very positive. According to the entity itself, in less than a month have granted more than 70 million euros in advance Christmas loans, which have materialized in just over 100,000 contracts. Most consumers have requested 300 euros, while requests for 600 and 900 euros have accounted for 20%, respectively, of the total.
Terms and conditions
The big difference with regard to the loans granted in 2013 is that the money can also be used for food and beverages, as well as for home, fashion and accessories, toys, sports, leisure, culture, and so on. The beneficiaries can be all types of clients: those who have an establishment card and those who do not. The advantage of the first over the second is that they can delay the payment up to 6 months, the first 3 without interest; while the others must return the credit before February 28. In all cases, the credit includes commissions for the management.
Cajamar is another of the entities that have opted to facilitate purchases to their customers, who can request up to 6,000 euros to return in 10 months and with the possibility of deferring 25% of the total amount in the last payment. No interest rate applies, although it does have an opening fee of 3.25% (with a minimum of 60 euros) and 1% cancellation. Therefore, the APR is 7.51%.
For its part, La Caixa has a so-called Star Loan, which can be amortized up to 10 months. It has an opening commission of 3 %, a 1.50% of study and a 3.50% for amortization. The APR is 10.64%. It can be requested from a minimum of 500 euros and a maximum of 5,000 euros.
With Banco Popular we can directly buy the gift for our relatives and friends or give us a whim in a simple way and with payment facilities. Through the page www.popularcompras.com, you can access a wide range of articles of electronics, home, appliances, etc. In some of the products -normally those that have a price superior to 200 euros- the entity allows payment in installments by monthly installments without any associated cost. For example, you can buy a Samsung Series 6400 32 ” 3D television, valued at 499 euros, from 13.87 euros per month without surcharge.
The financing is granted by Banco Popular itself, does not apply interest or commissions and the maximum repayment term is 36 months. The items can be requested at any branch or purchased with a credit or debit card.
Express money with advantages
The proliferation of entities specializing in the quick money concession has unleashed a price war and today it is possible to make use of some of these loans at no cost if it is the first time. This is the case, for example, of Krédito 24, Minicrédito Vivus or Minicrédito Pepe Dinero. Normally they require that the amount is returned within a maximum period of 7 days. Another offer of the moment is the Mobile Credit, with a 2 X 1: you pay the first loan and they give you the second free.
These are the conditions of some entities to be parties:
- Financial El Corte Inglés. From 100 to 1,200 euros. Payment period: minimum until February 28; Expandable to 6 months only for customers with El Corte Inglés card. The interest rate, 0%. Commission for management. APR between 6.16% and 12.68%, depending on the payment term.
- Cajamar Up to 6,000 euros. Payment term: 10 months. Interest rate, 0%. APR, 7.51%.
- La Caixa. From 500 and up to 5,000 euros. Payment period: Between 3 and 10 months. The interest rate, 0%. APR, 10.64%.
- Popular Bank. Purchase items at different prices. Samsung televisions, household items, household appliances … Payment period: Up to 36 months. 0% Payment can be made by card.
Four tips on personal financing
1. Ask for a credit only if you need it. It’s essential. The request for a loan should be considered, as a rule, as the last option, since it usually carries a cost rigged. In addition, it is important to ask only for the amount that is needed, no more.
2. The alternative in front of the card. The use of the credit card is a financing alternative for Christmas purchases. Keep in mind, however, that the average interest rate that entities apply is usually above 10%.
3. Look for low costs. You have to choose a comfortable personal loan via Green-Touch.org, which allows us to return it without problems and at a low cost. You must check the market options. Some entities advertise products without interest but, in reality, they are not exempt from commissions.
4. Read the contract. Before formalizing the granting of the credit, it is necessary to know all the conditions in detail. Sometimes, entities require a certain connection. Do not forget to check the small print of the document you sign.