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Black Friday Loans – Should You Borrow to Save?

By the Pachyy Editorial Team

The Pachyy Editorial Team comprises a diverse and experienced team of writers, researchers and subject matter experts whose aim is to provide you with useful insights, guidance and commentary on all matters related to your personal finances.

Hey there, busy shoppers! Black Friday is a super exciting day to get some important shopping done. Whether you need to stock up on household items, buy early Christmas presents, or treat yourself to some new stuff, Black Friday is the perfect time to score some awesome discounts. We’re talking 10%, 20%, or even 50% off your favorite household brands.

Now, here’s the thing. On average, households spend over $1,000 on Black Friday. So, the question is, should you consider borrowing money – like taking out a loan or using a credit card – to make the most of your spending and get the best value for your hard-earned cash? Pachyy has delved into the matter below:

Is it Worth Getting a Loan for Black Friday Savings?

If you’re considering getting a loan, such as a short-term or payday loan, for Black Friday shopping, it’s important to weigh the savings against the cost of the loan.

If you’re only planning to make small purchases on Black Friday, like clothes or electronics worth $50 or $100, it may not be worth paying interest on a loan.

However, if you’re looking to make larger purchases and spending $1,000, $2,000, or $5,000 plus, getting a loan could be a viable option. This becomes especially true if there’s a limited Black Friday offer of 20% or 30% off on the item you’re planning to buy, as the interest you pay would be relatively small compared to the savings.

What Rate Are You Being Charged?

It’s important to know what rate you are being charged. If you have a good credit score, you may only be paying rates from 36% APR. If you are borrowing for a short period of time, like a few weeks or months, this could be economically viable for you.

However, if you find yourself frequently paying the higher rates that are often associated with payday loans, such as 300% to 600%, and you plan on borrowing for 12 months or longer, you may end up paying double the interest on the amount you borrow. In this case, borrowing might not make much sense.

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How long will the loan be for?

If you’re confident that you can repay the loan quickly, it could be a good choice. However, it’s important to consider that the longer the loan remains open, the more interest you’ll have to pay each month. So, opting for a loan term of 24, 36, or 48 months will only result in accumulating more interest over time.

There may be instances where you need some extra cash urgently, such as waiting for your payday from work, expecting a bonus, or planning to sell your home. In these cases, it might be worth considering a small loan now so you can enjoy your Black Friday shopping, knowing that you’ll be in a stronger financial position in a few weeks.



What Are My Options for Borrowing Money on Black Friday?

Consider using credit cards and paying them back: Credit cards can be a great option as they essentially function as 0% loans if you make timely monthly payments. However, it’s important to be aware of any sign-up fees or charges that may apply for minimum or late repayments. By paying off your credit card balance on time each month, you can enjoy the benefits of 0% interest rates and even earn rewards like cashback, loyalty points, or airmiles, which can be a bonus when making big Black Friday purchases.

Explore the “Buy Now Pay Later” option: Buying a product now and paying for it later (BNPL) has gained popularity in online shopping recently, offering a convenient way to make purchases. Whether it’s household items, clothing, electronics, or furniture, you’ll likely come across many BNPL deals during Black Friday. With this option, you can make a purchase today after a quick eligibility check and then repay the amount in monthly installments or in one lump sum after 6 or 12 months. While this method is often interest-free, keep in mind that the rates can become quite high if you’re unable to repay by the end of the agreed period. Therefore, it’s crucial to have a clear plan in place and avoid accumulating excessive debt through buy now pay later.

Hunt for the best bargains: Different retailers may offer varying Black Friday deals, so it’s worth taking the time to shop around and find the best discounts. If you have a specific item in mind, chances are you can find it available from multiple sources. By doing your research, you can maximize your savings and potentially score deals ranging from a 10% to a 30% discount, saving you a significant amount of money. Additionally, be sure to keep an eye out for deals on Cyber Monday and the days following, as there may be leftover stock and plenty of affordable items to choose from.

Helpful Tips for Borrowing Money on Black Friday

Compare Rates: When considering borrowing money for your Black Friday purchases, it’s essential to compare rates from different providers instead of accepting the first offer you receive. While payday loans are convenient for quick financial needs, they often come with interest rates ranging from 300% to 600% APR. By having fair or good credit, you may have access to products with rates around 36% to 100%, so it’s worth exploring your options before making a decision.

Evaluate the Savings: While Black Friday bargains and discounts are appealing, it’s crucial to ensure that the interest you’ll pay on the loan is outweighed by the overall savings. For smaller items like $50 or $100, it may not be worth it, but if you’re purchasing something worth $2,000 or $5,000 and getting a significant Black Friday discount, there could be substantial savings to be made.

Avoid Long Borrowing Periods: Loans become more expensive the longer you have them open due to accruing interest. For instance, if you borrow $500, it will cost less to repay in 3 months than it would over 3 years. If you’re making an immediate purchase during a sale, try your best to pay it off quickly, ideally within a few weeks or months. This can lead to substantial savings. If you want to repay your loan early, reach out to your lender directly.

Ensure Loan Repayment is Manageable: Payday loans and other short-term loans can become extremely expensive if you fail to keep up with repayments. Don’t let a Black Friday offer tempt you into borrowing without certainty that you’ll be able to repay the loan, whether it’s due in 3, 6, or 12 months. Falling behind on repayments can result in additional costs and late fees, ultimately outweighing any savings you made on your Black Friday purchase.

Please note that we do not encourage the use of payday loans or other high-cost loans for personal shopping and non-essential spending. These loans should be reserved for emergencies, such as car and home repairs, and should not be relied on for everyday expenses or luxury items. Additionally, they are not a long-term solution to financial problems and should ideally be utilized for short-term reasons. If you’re experiencing financial difficulty, we recommend seeking advice from a debt professional or debt charity.

Sumbit an Application

Our application is user friendly, can be completed in under 5 minuets, will have zero effect on your credit score and is completely free!

Sit Back and Let Us Work Our Magic!

Once you have submitted your application, we will evaluate all options in real time and notifiy you within a few minuets of the lowest APR loans avaliable for you.

Receive your Cash

Subject to further checks and documentation, your lender of choice will wire cash to your checking account.


Apply For Cash Now

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