Avoid Short Term High Interest Loans this Christmas
The number of payday loan companies in many countries of the world is thankfully declining, as more and more financial regulatory bodies have stepped into to ensure that finally consumers are protected from some of the loan shark type operators that have dominated that industry in recent years.
Therefore those of you out there who may be struggling with your Christmas expenses may be looking at getting a short term but high interest loan, from one of the many companies that have stepped into the void left by those now defunct payday loan companies.
However, the way that those companies operate is by giving consumers slightly higher valued loans than a payday loan type company, but spread them over a much longer term, such as 6, 12 or even 24 months.
By doing so they can still charge some very high interest rates, but not as high as payday companies are renowned for charging. On average a short term but high interest loan can cost between 0.8% and 1% per day in interest, but those loans are arranged in such a way that a lot of the fees and additional charges payday loan companies used to force upon their customers are no longer in place.
Plus, those taking out such loans are never going to be penalised in any way if they manage to pay off their loans early. But you should always try and avoid taking out such loans unless you are 100% confident that you will be able to pay them off.
As Christmas is approaching you may be struggling to get the finances together to pay for all of the usual outgoings, however I really would encourage you to put together an action plan that will see you living within your means over the festive period and always try and avoid taking out any type of short term loan.
One great place to get lots of sound and practical advice on all money matters is the Money Saving Expert website you will find a very busy forum at that site in which users share their money saving tips.
Many people would also be best advised to put together a plan that is going to see them only spending what they need to spend up to and over the Christmas and New Year holiday breaks, and then religiously sticking to that plan, for by doing so you are not going to be saddled with a lot of debt to pay off in the year ahead.
If you have no other option to borrow money then make sure that you first try and find a much cheaper alternative to taking out a loan, family and friends will often be prepared to step in and lend you some money to tide you over as long as you show a real commitment and have the means to pay them back on time and in full too.