The holiday season is supposed to feel warm, joyful, and full of celebration—but for many people, it also brings something far less cheerful: financial pressure. Between travel expenses, gift shopping, special meals, and unexpected invitations, the end of the year can stretch even a well-planned budget beyond its limits. If you’re staring down a list of expenses that your paycheck simply can’t cover, you’re not alone.
Borrowing money isn't ideal, but sometimes it’s the practical bridge you need to get through the season. The key is choosing a borrowing option that fits your situation without harming your finances long-term. Below are five realistic, accessible ways to borrow money for the holidays, along with what to weigh before you jump in.
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1. A Small Personal Loan From a Credit Union or Bank
When people think of borrowing money, a personal loan is usually what comes to mind. And for good reason—personal loans typically offer predictable payments, fixed interest rates, and clear repayment timelines. If you need a few hundred to a few thousand dollars for holiday expenses, a small personal loan can be a clean, structured solution.
Credit unions, in particular, tend to offer far better interest rates than online lenders. They’re member-owned, so they aren’t focused on squeezing profit from borrowers. Many even have holiday-themed loans each winter with simplified approval requirements and smaller loan amounts that fit seasonal needs.
When it works well:
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You have decent credit or a stable income.
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You want a clear monthly payment, not revolving debt.
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You need more than you can comfortably borrow from friends and family.
Things to watch:
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Processing may take a day or two, so this isn’t an instant-cash option.
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If your credit isn’t strong, the rate might not be worth it.
2. Borrowing From Friends or Family (With a Written Plan)
This option makes many people cringe, but handled correctly, it can be one of the lowest-cost and lowest-stress ways to borrow. Loved ones often understand your financial situation better than a bank ever could, and they may be willing to help without high interest or rigid terms.
Of course, money and relationships mix about as well as oil and water when expectations aren't clear. The smartest approach is to treat the loan like a professional transaction. Agree on the amount, put the repayment terms in writing, and follow through exactly as promised.
Some families like using simple loan-tracking apps that let both parties see the balance and payment schedule. It removes awkwardness and prevents misunderstandings later.
When it works well:
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The person lending can truly afford to part with the money temporarily.
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You know you can repay on time.
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You’re comfortable having an honest conversation about terms.
Things to watch:
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Not following through can strain relationships.
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Emotional pressure can feel heavier than dealing with a bank.
3. Using a 0% APR Credit Card—If You Can Pay It Off Fast
If you’ve been offered a 0% intro APR credit card (or you already have one), it can essentially act as an interest-free loan—but only if you repay the balance before the promotional period ends. These promo windows usually last between 12 and 21 months. Used carefully, they can help you fund holiday expenses without paying a cent of interest.
Even without a promo offer, credit cards can still provide quick access to cash. But this comes with a major caveat: interest rates are high, often north of 20%. If you don’t pay the balance quickly, the holidays will follow you deep into next year.
When it works well:
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You have a 0% APR offer and the discipline to pay it down aggressively.
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You only charge what you can realistically repay within a few months.
Things to watch:
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Minimum payments are designed to keep you in debt longer.
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One missed payment can void the promo rate.
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Not ideal if your budget is already tight.
4. A Paycheck Advance or Employer-Sponsored Loan
Paycheck advances have changed a lot in recent years. Many employers—especially larger companies—now offer earned-wage access, allowing employees to withdraw part of their paycheck early. Unlike those old payday loans that trapped people in debt spirals, employer-based advances often come with little to no interest and are deducted automatically from your next paycheck.
If your workplace doesn’t offer this, some financial apps provide similar services, though they may charge small fees. The advantage here is speed: you can usually access cash the same day, sometimes within minutes.
When it works well:
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You only need a small amount to bridge a short-term gap.
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You’re confident your next paycheck can absorb the deduction.
Things to watch:
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Can create a cycle of always being one paycheck behind.
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Apps may charge fees that add up over time.
5. A Secured Loan—Using Your Car or Savings as Collateral
If traditional borrowing isn’t an option because of your credit score or income, a secured loan can offer a lifeline. With this type of loan, you put up collateral—often a car title or a savings account—in exchange for borrowing money at a lower interest rate.
Credit unions often offer share-secured loans, where your own savings serve as the collateral. These loans are typically low-interest and easy to qualify for, and you continue earning interest on your savings even while they’re “locked.”
Car-title loans also exist, but these should be approached very carefully. While they offer quick approval, they often carry high interest rates, and you risk losing your vehicle if you can’t repay.
When it works well:
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You have savings you don’t want to withdraw.
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You want a low rate and easier approval.
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You’re confident you can meet repayment terms.
Things to watch:
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Car-title loans can be risky and expensive.
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Your collateral is at stake if something goes wrong.
A Final Word of Advice
Borrowing money for the holidays isn’t something to feel ashamed about. It’s a practical decision many people make each year. The important part is matching the loan to your situation and thinking beyond December. No holiday gift is worth months of financial stress.
Before borrowing, take a moment to ask yourself three questions:
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Do I really need this purchase, or can I scale back?
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Do I have a clear plan to repay the loan?
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Is there a lower-cost option I haven’t tried yet?
If you can answer those questions honestly and still feel confident in your decision, then borrowing may be the bridge you need to make the holidays enjoyable instead of overwhelming.
The season is meant for connection, generosity, and warmth—not for digging yourself into a financial hole. Choose your borrowing option thoughtfully, have a repayment plan, and give yourself permission to celebrate without the stress.
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