What is a Christmas Loan? How do you get Christmas loans from friends or family?

A Christmas loan is generally a short term loan with no collateral that has been approved by a financial institution solely based on credit rating or by friends and family to ensure that the Christmas vacation, shopping, and holiday season is enjoyed by you and your family.  Christmas loans help those who are short on funds and short on cash flow or credit for Christmas shopping and celebration expenses. Expenses are hectic over the holidays, with vacations, gifts, clothing, trees and festivities. Many of these loans are required to be paid next pay day after the holiday, but some loans are flexible, especially between friends and family.

With the Christmas holiday coming up very quickly there many bad credit lenders who will offer you Christmas loans to buy those Christmas presents.

The reality is that people who take loans during Christmas do so without considering interest rates, because it is the most important time of the year, and cash flow often becomes tighter. The solution is not always with the Christmas Loan companies, the concept is not that foreign to people and is easily applied to friends and family. It is actually a great term for you to use when going to get a loan from friends and family.

Christmas time is the time to approach family or be prepared to lend to family, so do so with a Christmas Loan, a short-term personal loan between friends and family. Like lending money any time of the year, you first put a loan document in place, the timeframe is generally a lot shorter than the typical agreement, for example 60 – 90 days, and the interest rate is generally a bit higher. Make the loan with friends and family, and they get the joy of helping you during Christmas and better interest on their money than having it sit in the Bank over the Holidays.

The key to a Christmas loan is exactly that, you need to get through Christmas. If you feel comfortable borrowing from the family member and making the loan over 6 – 12 months, than discuss it openly and offer them a good return on their Christmas loan money. The reality is if a family member came to me today and said they can’t afford Christmas, I would understand… I would lend them money if I had it. If you are like me, than you need a Christmas Loan Document today to document your loan with your friends or family who’s in need. These loan documents are available at www.kasu.ca and just implies that you make the loan terms in a shorter timeframe as you fill out the “make a loan document” section.

If you are lending to friends and family over the holidays and have decided to give a Christmas loan, firstly you should document it, however we definitely recommend you considering:

1. Their personal financial situation, whether they have credit to pay for the holidays for at what those rates are or whether their credit is maxed.
2. If they have had a job for over 6 months, it’s a good indicator of you getting paid back according to Christmas Loan company standards
3. Make sure you are not loaning out of your credit, that it is cash you actually have, starting your year in more debt and your friends in debt to you is not the best way to start the new year

Above all else, feel good about lending the money, and make sure you feel appreciated for doing it. And likewise to the person receiving money from friends and family let the lender know how appreciative you are of the Christmas Loan. Remember to be smart with your money and do not overspend or overlend your situation, that Christmas is really about loving and giving, but giving doesn’t always have to be expensive gifts and should be about appreciating what you do get. If its in your heart, a Christmas loan is a wonderful thing to give, and you should consider documenting it with your family, and if you are looking for a Christmas loan… consider your friends and family and discuss this with them with a document.

Writer Ryan Anthony Gibson