How to avoid a Christmas spending hangover

With Christmas just around the cornernow’s the time to start planning your budget to avoid being stung by high-cost credit if you need a helping hand.

There’s no doubt, Christmas can be a financially challenging time of year for many of us, and you may be considering some form of credit to tide you over. But whether that’s putting a few presents on a store card, or borrowing a bit of extra cash from an online lender, what seems like a quick fix can lead to bigger money headaches in the long run. Hidden charges and high interest rates could mean the real cost of borrowing is higher than expected, leading to a financial ‘hangover’ which could last well into the new year.

Some tips if you do need to borrow:

0% credit card offers can be a good option for short-term borrowing, but you must be absolutely sure you have repaid your balance in full before the interest-free period ends.

Unauthorised overdrafts are an obvious one to avoid due to high costs, but beware – even authorised overdrafts can be expensive, with typical charges of £1.50 per day as well as interest on top of that.

APRs are not always what they seem: whilst headline APRs with some loan providers may look attractive, a ‘representative APR’ means that the rate must be available to at least 51% of applicants. In reality this means that almost half of applicants will pay moreThis is not the case with The Co-op Credit Union – our loans rates are transparent and are capped at a maximum rate of 29.8% so you can be sure the rate will never be more than that.

– Christmas Loans from The Co-op Credit Union:

Every year, we help hundreds of colleagues spread the cost of Christmas with an affordable loan. Typically, members borrow around £500 – £1000 and repay in instalments over 12 months, but loans are available from as little as £50 up to £2,000 for Christmas.

A loan from The Co-op Credit Union could potentially save you money and take the stress out of making your money go further this Christmas. Plus, by getting members started with an affordable savings plan; joining the Credit Union could be a great way to make next Christmas look brighter too.

Apply now and subject to approval of your application, money can be in your account within 2 working days of receipt of completed application.

Apply for a Loan!

What does it cost?

As a guide, we’ve compared a few of the popular loans products currently on the market to show how a Co-op Credit Union Christmas Loan could save you money:

Typical cost to borrow £1,000 for 12 months:

Product APR Interest payable Total repayable
Co-op Credit Union loan 22.8% £115.73 £1115.75
118118 loans 99.9% £432.20 £1432.20
Amigo loans 49.9% £236.72 £1236.72
Vanquis Credit Card 39.9% £229 £1229.00


NB: Examples given are for illustrative purposes only, based on outline quotations taken from the provider’s websites and actual costs may vary.