5 Master Tips For Financing Expensive Christmas Presents

Kids may think that Christmas is all about receiving as many gifts as possible but quantity doesn’t always outweigh quality. If you’re trying to plan for the season of giving and you’d like to switch things up this year, consider giving a bigger gift to the family as opposed to several small gifts that everything will tuck away in their drawers and forget about.

There are so many different types of larger gifts you can give this Christmas season. You could go for a car, which is certain to get used, but that’s not practical if all of your family vehicles are fairly new and well-maintained. Another option that entire family would enjoy is the installation of a pool or a hot tub. Pools can give to the family all year long but they can carry a hefty price tag. Here are 5 tips on how to masterfully fund a large purchase around Christmas:

Look at Your Credit Card Offers

Right around Christmas, several credit card companies send out offers trying to entice people who are in need of holiday cash but don’t have it. You might not be desperate for the credit line, but accepting an invitation could be all you need to fund a Christmas pool installation.

Pay for It Early and Transfer the Balance

It takes time to install a pool. The average installation for an in-ground pool will take between 3 to 12 weeks depending on how complex the design is. If you really want your gift to be ready for Christmas time, why not put the purchase on an existing credit card a month or two before and then take advantage of a balance transfer offer that you’ll get in the next month or two?

Taking up a 0% balance transfer option will save you hundreds of interest and it will help you pay down your old card with any debt you might have had before. Just be sure you don’t close the old card that you pay off because it will be an established account that helps your credit. Even though you’re not closing it doesn’t mean you should start using it either!

Look for Offers with Rewards

One of the perks of financing your large Christmas gifts with the right credit card is that you can take advantage of rewards. Rewards cards are great because you can earn points on things that you’d like to get yourself but can’t justify spending mouse on. When you’re buying items for home improvement, you may even be able to find an issuer offering double or triple the points. Finance your pool and you’re sure to have enough points for flights or other gifts for yourself.

Consider Tapping into Your Home’s Equity

A pool or a spa is going to most definitely increase the value of your home, especially if you live in a state that’s sunny year round. Since the value of your home will go up when the project is complete, it does make sense to take out a home equity loan. You’ll get a lower rate than you would if you used a credit card and you’ll pay a fixed monthly fee much like you pay when covering the mortgage. You can even use your Home Equity Line of Credit account to pay for supplies like spa chemicals or pool brushes.

Take Cash Out without Changing Your Payment

Another way to tap into your home’s equity without taking on an entirely new loan payment is to do a cash-out refinance. The rates for home loans are extremely low right now and that’s prompted a lot of homeowners to refinance their home and take money out off the top to do home improvements. You may keep the same home payment and still get the money you need for a pool.

There are several ways that you finance large gifts for Christmas without totally affecting your financial situation in the future. There’s always credit cards but be sure you’re getting something out of it when you’re buying on credit. Don’t underestimate the cost of pool ownership. You may be able to finance the gift masterfully, but factor in the monthly costs of maintaining your new family gift.

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