Bank Jerusalem Executive Offers Holiday Spending Advice
As the High Holidays approach, a period marked by increased family expenses for food, clothing, and entertaining, Ofir Ohana, Deputy CEO and head of the retail division at Bank Jerusalem, has provided guidance on managing holiday budgets. Ohana emphasized that holidays do not need to become a financial burden if managed properly.
He advised that while credit can be a useful financial tool, it should be used with careful planning, understanding costs and repayment capabilities, and ensuring it aligns with the family's budget. Ohana suggested asking three key questions before taking a loan: why the money is needed, how much is truly required, and what monthly repayment is comfortable. He cautioned against taking loans simply because they are available, but noted that a structured loan can be better than persistent overdrafts or unplanned credit card use.
Bank Jerusalem is offering loans of up to NIS 200,000, with repayment periods up to 120 months. Notably, customers of any bank can apply without needing to transfer their primary bank account or salary. Ohana stressed that the bank's goal is to match the loan amount and term to the client's actual needs and repayment capacity, not to maximize the loan sum. He highlighted that the bank assesses each application individually, considering income, existing commitments, and creditworthiness, aiming to ensure the loan supports the household rather than becoming a burden.
Ohana also addressed the unique financial structures within the Haredi community, stating that Bank Jerusalem has a deep understanding of its specific characteristics and tailors financial solutions accordingly. He advised consumers to look beyond just the interest rate when evaluating a loan, considering the loan amount, interest rate, repayment period, and monthly payment in conjunction with other household debts. He also mentioned the option of early loan repayment.
His primary advice for families before the holiday spending surge is to view the entire holiday period holistically. He recommended estimating all expected expenses and categorizing them into what can be covered by current income, what can be paid from existing savings, and only then determining the need and extent of any required credit. Ohana reiterated that credit is a tool, not a source of income, and when used responsibly, it can provide flexibility during periods of high expenditure, but it must be part of a financial plan.
