The growth rate will be lower than last year
Around 23,105 Riojans will resort to some financing product (credit cards, consumer loans, payroll advances …) to be able to pay their expenses during Christmas, a figure equivalent to 11.76 percent of the adult population of the community, according to an analysis of Kelisto.es (www.Kelisto.es), the savings website.
The Black Friday, which was held on Friday, November 24, marks the beginning of the Christmas shopping season. During this time, La Rioja consumers spend an average of 604.6 euros (14 million euros in total), a figure that increases by 2.2 percent from the 591.6 euros that were recorded last year. Of the total expenditure, 39.33 percent will go to gifts (237.78 euros), 30.41 percent to food (183.86 euros), 18.13 percent to travel (109.61 euros) and 12.13 percent to leisure (73.37 euros).
“The advance in the creation of employment in recent months explains the improvement in Christmas consumption, although the growth rate will be lower than last year.” Among the factors that explain this slight containment of household spending, we find, for example, the drop in salaries, which have decreased for the first time in the last decade, or job insecurity, with a temporary employment rate of more than 50 percent in the jobs created since 2013. “
Nor should we forget that “consumer confidence has reached levels of last March -among other things, due to the economic outlook- and that issues such as the situation in Catalonia are already causing sharp drops in sales in the region, especially in the small and medium commerce “.
“In this context, many households will opt for financing solutions to alleviate the impact of Christmas expenses, taking advantage of the fact that banking continues to open the credit tap: only in August, new loans granted to families increased by 19 percent interannual, “explains Personal Finance spokesperson Kelisto.es, Estefanía González.
Those who need to resort to a credit card (with or without linkage), a loan or a payroll advance to pay these expenses in installments will have to pay their bank an average interest rate of 12.04 percent, a figure that could reach to skyrocket to 24 percent if they choose the most popular financing product for this type of payment: credit cards.
Faced with these options are others such as loans (with a minimum interest of 6 percent TIN and with little supply for such small amounts) or non-binding credit cards, which have offers at 0 percent TIN if the consumer returns the money in three months, but with high associated expenses.
“When choosing the most appropriate form of financing, we must take into account several issues: First of all, we must never forget to calculate the APR of the operation: this will allow us to know the real cost of postponing the payment, since that takes into account the interest to pay and the expenses or commissions “.
Secondly, it is important to know that the most advantageous conditions to postpone expenses such as Christmas are found in short-term financing. Finally, it is worth remembering that, although personal loans are generally cheaper financing options than credit cards, the range of offers for an amount such as Christmas purchases makes the number of offers available to the client is reduced, since most products are designed for higher figures, “says González.
REGIONS THAT WILL MOST RECOVER TO FINANCING
The regions where a greater percentage of the population will finance their Christmas purchases are the autonomous cities of Melilla and Ceuta (15.87 percent and 14.99 percent respectively), followed by the communities of Murcia (13.43 percent), Balearic Islands (13.34 percent) and Andalusia (13.17 percent). At the other extreme are Asturias (10.35 percent), País Vasco (10.92 percent) and Cantabria (11.1 percent).
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