Holiday loans are advertised as a method to make up for holiday budgetary gaps, but they might really cause more problems than they solve. Because holiday loans are essentially personal loans aimed at Christmas buyers, this is the case. 

The truth is that these loans include APRs ranging from 5.99 percent to 35 percent, as well as monthly payments that are made over a long period of time.

It's bad enough if you don't have enough money for holiday gifts, but paying a high annual percentage rate on holiday debt for years to come seems even worse. As a result, if you can prevent them, you should be able to avoid taking out holiday loans.

1. Determine whether you can reduce your holiday spending

If you're short on budget this holiday season, taking the time to figure out who you truly need to shop for will help you save a lot of headaches. It's likely that you'll have to skip out on gifts for coworkers or distant relatives, and it's also feasible that you'll have to skip out on some of your favourite gift exchanges. You can also make use of discount codes for hotels such as Oyo coupon codes​, to save money on hotel stays while on holiday, you can easily get such codes from a well known deals portal such as CouponsABC, they provides free codes which are simple and easy to use.

In any event, the holidays are about religion and family, not gifts. Your relatives and friends are unlikely to notice if you spend a bit less this year, and if they do, they are unlikely to take it personally.

2. Put your unwanted items up for sale

If you're short on cash this holiday season, taking inventory of what you have and what you don't want may be able to help you make ends meet. If you can sell any products, you'll be well on your way to covering everyone on your shopping list.

Clothing, fitness equipment, appliances, and home decor are just a few examples of things that are simple to market and sell online. To sell your items, use eBay, Facebook marketplace groups, or even Craigslist.

3. Work on a side hustle

Although not everyone is able to obtain part-time or temporary work, working on the side for a few weeks can help you save money for the holidays. If you can take up more hours or shifts at work, this is a wonderful place to start. If not, you'll need to augment your income in other ways.

4. Take advantage of whatever benefits you've accrued

If you've amassed points on a cash back or rewards credit card, now might be the perfect time to redeem them. Many cash back cards feature a portal where you can exchange points for products, making them an excellent method to buy for free. Many cards allow you to exchange points for gift cards, which you can offer as gifts or use for Christmas shopping, you can also make use of websites which provides gifts cards such as Amazon gift card, Flipkart gift cards, etc. One such website is Askmeoffers where you can grab all such options with additional discounts while you use coupons.

Remember that if you don't pay off your loan in full before your deal expires, you'll be charged a hefty interest rate. To avoid long-term debt, only charge holiday goods that you know you'll be able to pay off before the promotional period on your card expires.

Finally, but certainly not least

While the holidays are intended to be about spending time with family and friends, the holiday shopping season can make it tough to feel upbeat and cheerful. When you're short on cash, it's easy to feel bad about not being able to afford many gifts.

In an ideal world, you'll be able to strike a balance that allows you to be helpful to everyone you care about while staying out of debt. Spending less this year will make the holidays easier to stomach, but you should also be able to generate more money. You might be able to get through the holiday season without breaking the wallet if you can do both.