How to Pay for Holiday Shopping
The holiday season brings joy, celebration — and spending. Whether you’re shopping for gifts, decking the halls or hosting dinners, the costs can really add up. How to pay for it all?
The nice news is that you’ve got options for funding your holiday cheer. The naughty news is that each method has its own pros and cons.
Before you “add to cart,” let’s explore four popular ways to pay for your holiday shopping.
1. Savings
Best for: The organized planner or disciplined saver.
Nice:
- No interest or fees since you’re using your own money.
- Peace of mind. No payments or debt after the holidays.
- Sense of control. You’re sticking to a budget you’ve already set aside.
Naughty:
- You might drain funds meant for emergencies or other goals.
- If you haven’t saved in advance, it may limit what you can afford.
Pro tip: Set up a Holiday Club Account now and contribute a small amount on a regular basis.
2. Credit cards
Best for: Shoppers with good credit, a solid plan for paying off the balance or rewards leveragers.
Nice:
- Convenience. Accepted almost everywhere
- Potential rewards. Points, miles, or cashback
- Purchase protection. Many cards offer fraud protection and return safeguards.
Naughty:
- High interest rates if you don’t pay the balance in full.
- Easy to overspend and lose track of your budget.
- Minimum payments can drag the debt into the new year.
3. Holiday loans
A holiday loan is a small personal loan offered by banks or credit unions, specifically for seasonal spending.
Best for: People who want fixed payments and a structured payoff plan.
Nice:
- Fixed interest rate and monthly payments — you know what to expect.
- Lower rates than most credit cards for qualified customers.
- Organizes your spending to one place and makes it easier to track.
Naughty:
- You’re taking on debt for non-essentials.
- Interest means you’re paying more than the purchase price.
- Requires good credit to get the best rates.
4. Personal loans
Best for: Larger expenses or consolidating multiple holiday-related costs.
Nice:
- Structured repayment with fixed monthly payments.
- Lower interest rates than credit cards.
- Flexibility — can be used for almost anything.
Naughty:
- Longer-term debt that can last 12–60 months.
- Loan approval can take time and may affect your credit.
- A strong credit score or collateral may be required.
Use our guide to find the best way for you to pay for this season’s expenses. Happy holidays!
