Celebrating Christmas is a very magical time, but sometimes it can also be when many Aussies fall into more debt than planned, due to overspending and impulse purchases.


So, should you use a personal loan for Christmas?

If you don’t have the money saved for Christmas, but plan on spending a little, using a personal loan can be a good solution. It’s definitely a more structured approach rather than hammering your credit card or getting caught out by too many Afterpay debits.

If you are considering a personal loan, we recommend your first step is to set your entire budget first. Know exactly what you plan to spend on presents, food, decorations etc. and be sure you stick to it.

Then apply for a personal loan for that amount, and whatever you do, don’t allow yourself to spend anymore.

Here are our 3 reasons why a personal loan is your best finance option for Christmas:


1. A personal loan can’t be overdrawn or pushed outside its limits

When you take out a personal loan, it is a set amount deposited into your account. You can never use it twice, unlike a credit card limit, so you know it will be completely repaid and won’t be an ongoing debt you may not be able to get rid of.

But what about Afterpay? If you’re considering using Afterpay for Christmas presents, we are guessing you will be buying more than one present.

This means you may use multiple Afterpays. Potentially you could lose track of all of the different amounts to be debited, especially over the festive season, and get caught out by an unexpected withdrawal.

However, by taking out one personal loan to cover all of your budgeted expenses, it will only have one regular repayment that you can be prepared for.

christmas loan

2. A personal loan is checked to make sure its affordable for you

When you apply for a personal loan through a responsible lender like ourselves, we make sure that the the personal loan repayment is affordable and manageable for you. Your repayment is fixed and locked at the same amount, for the entire term of the loan.

With credit cards, your monthly statement and minimum repayment can vary each and every month. This can make it very hard to budget, and if you are unable to clear the balance at the end of the month, then you also have to be prepared for additional charges such as interest.

Similarly, if you use multiple Afterpays, and lose track of how many you have set up, you are open to the danger of not having enough money in your account when each of the debits are processed.

What does this mean? Unfortunately you will be hit by direct debit dishonours and extra penalty charges which can then affect your credit score, especially with the introduction of Comprehensive Credit Reporting.


3. Be organised with a personal loan for Christmas, so it leaves any surplus cash for unexpected costs.

By being prepared, and budgeting for a Christmas personal loan, it will mean you can now use your remaining cash (and hopefully a Christmas bonus) for any emergencies or unexpected costs.

So, from all of us here at Fair Go Finance, we wish you, your family and friends all a very Merry Christmas! 

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Are you eligible to apply?


It can be expensive to borrow small amounts of money and borrowing may not solve your money problems.

Check your options before you borrow:
For more information about other options for managing bills and debts, ring 1800 007 007 from anywhere in Australia to talk to a free and independent financial counsellor.

Talk to your electricity, gas, phone or water provider to see if you can work out a payment plan.
If you are on government benefits, ask if you can receive an advance from Centrelink.

The Australian Government’s MoneySmart Website shows you how small amount loans work and suggests other options that may help you.

* This statement is an Australian Government requirement under the National Consumer Credit Protection Act 2009.