Except of fun and Christmas mood, holiday season usually brings a lot of expenses. Consumers who took their time and prepared for the holidays feel more or less financially secured. But those who live from paycheck to paycheck and have relatively small income face a need of borrowing money.
They are looking for ways of getting quick cash to cover holiday expenses and apply to pawn shops and financial institutions providing fast money. According to reports, around 8% of American consumers still have debt left of last year’s holiday season. This time is especially profitable for payday lenders (as you know, payday lenders may stop existing at all) offering short term unsecured loans. They suggest people who have tight budget to get quick and easy financial assistance.
Getting Cash Quickly With a Help of Payday Loans
Fast loans allow customers to get relatively small amounts of money in advance till next payday. One of the main advantages of these credit products is that they are available for customers with bad credit and to those who don’t have any records in their credit history yet.
It’s possible to get bad credit loan very quickly and with no hassle but people considering this option should keep in mind that it can be quite expensive. Payday loans usually have high APR because they are unsecured and it means that there’s more risk that the borrower will fail to repay the loan. It’s better to use service like this in case there are no other options available for a consumer and there’s really an urgent need of getting funds.
Most consumers are looking for simple ways to obtain money but decision to apply for a loan should never be made in a hurry. Consumers should stay financially literate and educate themselves on other lending alternatives they have.
For example, many credit card retailers have special offers intended to attract new clients during the holiday season. Some credit cards have reasonable APR and using them can be considered as a good option. Also there are credit unions and banks providing loans for a short term.
Before making a decision to apply for one or another loan it’s important to consider all the pros and cons to make sure that you are going to make the right decision.
By the way, read pros and cons of unsecured personal loans.
Finding Alternative Ways for Borrowing Funds
Financial advisors recommend customers to create special budgets intended to cover costs during the holidays. Budgeting is the key to healthy financial life and that’s why it’s better to cut spending beforehand to build savings for holiday shopping. Actually, there are many options for getting funds for holiday spending. For sure many employers can provide cash in advance and it allows paying no interest rate. Consider working extra hours and look for ways to boost your income.
Sell things you don’t need, it will allow to free some space for purchases you will make in a new year and to get some money of course. Even if you’re stressed don’t make impulse financial decisions, stay frugal and don’t forget that the best gift you make to your beloved is to devote them your time and attention.
P.S.: Get ready for the Valentine’s spending.