Christmas is in three days and for most of us that includes presents as well as the Christmas tree or a festive meal. But what if you can’t afford big gifts but still don’t want to disappoint your loved ones?
More and more shops and internet portals are now offering installment payments for such cases. Buy now and pay later sounds tempting.
“Many would need their 13th month’s wage for living expenses. Instead we invest in Christmas presents.”
Petra Priller, debt advice
However, consumer advocates warn of additional costs and the risk of falling into a debt trap. Petra Priller from Caritas debt counseling can tell you a thing or two about it. “Christmas means giving joy. But most people allow themselves to be influenced by the consumer frenzy as early as November. The gifts cost money. When it comes to debt advice, we see that the average income is 1,300 euros. Many of our clients have to make living expenses with their thirteenth, i.e. the so-called Christmas bonus. That means: There’s actually little left for gifts.”
Loans have become much more expensive
Many shops, but especially the large online portals, now offer installment payments even for smaller amounts. However, consumer advice centers and debt advice centers warn against consumer loans during the holidays – and for several reasons, explains Petra Priller.
“The risks are obvious. The installment payments are very expensive because of the increased loans and you have to have a good overview of the income and expenses. The more I have to spend on the installment, the less I have left to cover my fixed costs.”
Not compliant with EU regulations
One problem that promotes over-indebtedness is that there is currently no credit check for small loans. The EU now wants to change that, says the managing director of the consumer advice center Gunde Bauhofer: “Creditworthiness checks are not being carried out for these micro-loans at the moment. This means: Even if I am already heavily in debt, I will be offered such a loan. The EU says that this is actually not possible. Even with small loans, the financial situation must be checked to ensure that there is no over-indebtedness.”
It would of course be better not to take on any debt at all at Christmas, says Gunde Bauhofer and gives a simple tip: save. According to Bauhofer, you should think about what you want to buy long before you buy a gift and put the necessary money aside early on.
And if a loan is necessary – whether for Christmas or any other time of the year – then you should definitely plan enough buffer for unforeseen events such as a suddenly necessary car repair or because the washing machine breaks down.
The Italians “spend” 446 euros for Christmas
This year, Italians will spend an average of 446 euros over the Christmas holidays. About half of the amount is spent on gifts, the other half on holiday meals and short trips.
This emerges from a survey by the national consumer protection association AltroConsumo. Almost half of those surveyed said they primarily buy online. A quarter plan to spend less this year than last year.
2023-12-22 02:03:56
#Debt #trap #gifts
