Articles & Tools

Spring Loans

Author: Shira Diamant
The proliferation of loan offers ahead of Passover

The month of Nissan. Passover eve is on the way and the holiday is approaching. Many plans run through your head – cleaning the house, maybe also painting, renewing the flowers in the garden, buying new serving utensils for the Seder and of course new clothes for all the children. Another expense and another expense, and Passover easily becomes one of the most expensive holidays for us. Our bank account is starting to shrink, and the expenses are still many, and we need a solution…

In a survey conducted by Paamonim, 40% of the respondents indicated that their financial situation would worsen due to the many expenses of the holiday.

This is where banks, credit card companies and other financial institutions come in. They know the problem as well as we do and prepare for it in advance. “Let us help you celebrate the holiday properly”, “Take a loan, go out and have fun”, “Are you in a minus? Take a loan to cover and enjoy the holiday properly’ The ads will say, offering a decent loan for you plus a convenient and flexible repayment, which can span many payments. The loans can be taken with one click – filling out a simple form and tens of thousands of shekels will find their way to your bank account.

So why not take out a loan?! What’s the problem?!

First of all, it is important to remember – loans need to be repaid!

We tend to think that our financial situation will be better next month, but it doesn’t always work for us. Repaying the loan is an additional expense that weighs on us even more, every month. In our experience at Paamonim, in most cases, loans taken to finance excess consumption or to cover overdrafts worsen the borrower’s financial situation. The fumes of the holiday and vacation will already disappear, while the monthly charge in the bank account for a loan taken will reappear. Is this necessary? Will taking out a loan improve your financial situation?!

So how do you prepare for the high expenses this season?

  • Consider all planned expenses. Are they relevant to your financial situation? Yes? Go for it! Not? Thought! What can you give up this year? Even if it seems there isn’t, think again, you can always find.
  • Check how you can reduce each of the expected expenses – holiday dinner, clothing, gifts or entertainment. Any expense can be reduced, put thought into how. For example, buying groceries for Passover is essential, but buying expensive foodstuffs is not necessarily.
  • Is it hard for you to decide what to give up? Examine each expense through the lens of ‘should’ or ‘want’. Allow yourself to forgo the expenses of the ‘want’ this time. For example, can’t you go on vacation in the spring? Instead of taking out a loan to go on vacation, start saving for the summer.
  • Do not despair – sometimes when the financial situation is not good and the holiday is approaching, we try to improve the mood by shopping and unnecessary spending. Remember! For every waste of the day, you will pay dearly months ahead. Try to use your best judgment even when it’s difficult.
  • You can enjoy for less – many of us believe that without indulging, pampering and buying, it is not possible to celebrate the holiday with pleasure and fun. Holiday experiences are not derived from the things you bought. If you think for a moment about the previous Passover, do you remember the shopping cart at the supermarket? Or the new dresses? Shared experiences from a family gathering or a blossoming trip in the mountains are the experiences we remember, and they are not measured by the amount of money we spent.

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