Holiday spending brings risks that may not be visible at first glance. Emotional decision-making, pressure to give gifts, discounts and online offers create ideal conditions for us to spend more and less profitably than we would like. This was pointed out by Matej Dobiš, an analyst of the Finančný kompas portal.
“Just because we’re not financing Christmas with debt doesn’t mean we’re spending wisely. Many do not realize that credit cards, overdrafts or installment purchases are typical consumer loans, often with one of the highest rates on the market. And the holiday season is the time when small decisions can turn into big, costly mistakes.” Dobiš explained.
More and more Slovaks buy gifts online, this year according to the survey up to half. However, the risks also increase with this. “Fake websites, deceptive offers and phishing can make the holidays much more expensive, not only financially, but also psychologically. Pay particular attention to payments using QR codes, carelessness is often misused,” zoomed in on the expert.
He also pointed out that in the pre-Christmas rush, we order more and lose track more easily. This is used by fraudsters who pretend to be mail couriers or well-known carriers. According to Dobiš, various SMS messages and e-mails with a link to “undelivered package” are becoming more professional and convincing from year to year.
Even though offers for various consumer loans at Christmas time may seem tempting, according to the expert, each loan has its own costs. “We’re not actually buying gifts, but a long-term commitment. Pay attention especially to ‘zero interest’, it’s usually an item that’s more expensive than if you bought it outright.” evaluated. Loans also include permitted overdrafts and credit cards, whose interest rates are also among the highest on the market. If you don’t pay it back on time, the price of the gift can increase by tens of percent. A gift bought in installments also burdens the wallet for a long timeguarded Dobis.
