The purpose people borrow money for is almost unbelievable. What drives people to go into debt for Christmas presents? If you are one of those people who just shake your head in disbelief, you are in luck. But one-tenth of Czech citizens have borrowed money in the past in connection with Christmas.
There is no rule against borrowingexclusively from banks and non-banks for Christmas .
They may also borrow money for themselves, relatives, or among friends. Surprisingly, however, it is not the elderly, who have the lowest incomes of the entire population (with some exceptions),but young people aged 18-26who borrow the most. Borrowing for Christmas is virtually non-existent among the elderly, and conversely, we seem to be experiencing a new phenomenon, as the number of young people who borrow for Christmas is gradually increasing. In 2017, only 3% of those over 55 signed loan agreements, compared to 27% of young people under 26. The most common loan amount was around 10,000 kronor.
Borrowers often act without thinking about how they will repay the loan or how they will fund the repayment
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Debt at Christmas is likely related to the irresponsibility of young people in their pre-Christmas euphoria, where the pursuit of material gifts overrides the spiritual context of the most beautiful holiday of the year. In short, Christmas is becoming a commercial game of possessions and gold leaf, and selfless giving in the context of neighborly love and friendship is disappearing.
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However, all borrowers will be helped by a change in the law starting in 2018 that will require financial institutions to disclose the APR (annual percentage rate) of consumer loans. Thus, borrowers should first calculate how much they will overpay in plenty of time and clarify the terms of their debt repayment.
However, Christmas is also a day of peace and quiet. In the past, people did not have the opportunity to acquire technological “toys” and lived happily and contentedly without cell phones, laptops, or tablet computers. There is a certain charm in attending midnight mass, walking through the (snowy) countryside in the evening, and singing carols without accompaniment. And perhaps more valuable than the hustle and bustle of modern technology.
