Why Choose a Christmas Loan Over Credit Cards?

Learn why a Christmas Loan over credit cards can ease holiday spending. Discover benefits like lower rates, fixed payments, and a stress-free season.

If there’s one thing Dubliners know, it’s that Christmas is a season of warmth, joy, and all those little traditions that make December feel magical. However, along with the holiday cheer, there’s an undeniable reality: Christmas is expensive. From gifts to gatherings to that inevitable trolley full of festive food, the costs add up fast. This year, the numbers tell their own story. 

Irish Mirror has this yearly blog series that tracks 20 food items from Tesco and Aldi for price changes. This year’s blog came out in February, and the difference is huge compared to 2023. If you’re one of those who buys the same gift each year (no, I’m not referring to a box of chocolates for your granny), you might notice the price difference right away. But if you’re trying to get a bit more creative with Christmas, whether it’s splurging on gifts, planning a holiday getaway, or adding some festive touches to your home, you’re likely feeling the squeeze even more. 

There is some good news: the minimum national wage increased from €11.30 to €12.70 this year, with another rise to €13.50 set for 2025. However, as The Independent points out, the minimum wage in Ireland, now at €12.70, still falls over €2 short of the living wage of €14.75 needed for a basic standard of living. Rising costs in essentials like rent, which has gone up by €12.28 per week, and food, which saw a further 1.5% increase this year, mean that even a modest Christmas can strain the budget for many Dubliners. 

Maxing Out the Credit Card? Think Twice 

Credit cards appear convenient, but that convenience has a cost: an interest rate often between 18 and 20 per cent. If you are only making minimum payments, this can drag you well into the new year. Plus, missing a payment can increase the repayments and may significantly damage your credit score, making it harder to stay financially stable in the future. 

This is where a Christmas Loan comes in. We have already covered what is a Christmas Loan, and why is it a better choice in our previous blog. Today, we’ll dive into how a Christmas Loan beats credit cards so you can make an informed decision for your holiday spending.

Credit Cards vs Christmas Loan

• Lower Interest Rates Than Credit Cards
  Credit cards can carry high interest rates that quickly add up. An MFCU Christmas Loan, however, comes with fixed, lower interest rates, helping you manage holiday expenses without facing hefty fees. 
• Predictable Monthly Repayments 
  A Christmas Loan provides the clarity of knowing exactly what you owe each month, with a set repayment schedule. There are no surprises or stress, just a straightforward way to plan for holiday spending. 
• Tailored Terms for Every Budget 
  At MFCU, we understand that everyone’s holiday budget is different. Whether you need a small loan for gifts or a bit more for a family celebration, our flexible terms allow you to borrow just what you need. There is no pressure to take on more than is necessary. 
• No Hidden Fees 
  Transparency is important. MFCU’s Christmas Loan has no hidden costs or surprise fees, allowing you to budget confidently without unexpected expenses. 
• Protect Your Credit Score 
  Credit cards can easily lead to missed payments and mounting debt. An MFCU Christmas Loan, with its structured repayment plan, helps you cover holiday expenses while protecting your credit score. 

Designed for Members, Not for Profit 

As a non-profit financial institution, MFCU’s mission is to serve the community first rather than chase profits. When we say our Christmas Loan is here to help you, it’s because we genuinely mean it. We are committed to our members and the community, ensuring the offerings are in your best interest. 

If a Christmas Loan sounds like the right fit, feel free to reach out. You can apply online, visit one of our branches, or simply give us a call. Our goal is to make the season brighter, not more stressful. 

If you are ready to start, take the first step by filling out this application form. 

At MFCU, we aim to make your Christmas merrier and more joyful. Your happiness is the true measure of our success.