Christmas on credit

Christmas on credit

In an ideal world, we would all save year round for Christmas and approach the festive season with a nice healthy savings account, all ready for the present shopping to begin.

The reality, however, sees most of us approaching November with a mixture of panic and desperation, particularly given the current period of economic stagnation, high inflation and low wage rises.

The fact is, we’re all strapped for cash and the Christmas period is one of the most expensive of the year. Not only presents, but parties, eating out, new clothes, haircuts, travel and general good times all combine to a rather expensive bill!

One useful solution can be to get a credit card that allows you to spread the cost of the festive season, but without paying through the nose for it.

Avoid basic credit cards with sky high interest rates, or you could find yourself still paying for this year’s Christmas holiday, next year!

A credit card with a zero percent interest rate for an initial period can be useful. Some cards offer this at three months, which may give you enough time to clear the balance before the interest charges kick in.

The trick is to do all your spending on this low or no interest rate card, then repay it as quickly as possible – ideally spreading the cost over the promotional period.

Other cards allow you to transfer expensive prior credit balances for a certain extended period if you have previous debts being charged at high interest rates; there are cards offering zero percent balance transfers for a year or more.

If your finances are in good shape and you’re simply looking to maximise returns on your Christmas shopping, you could also look at a cashback card that gives you between 0.5 and 5% of your purchases back at the end of the year in a cash sum.

Just remember to pay it off each month if full if you don’t want to pay interest charges. You can find a list of these cards at comparison sites such as moneysupermarket.com.

Other cards offer incentives such as airmiles, loyalty scheme points and other rewards, which can make them worthwhile. You can also apply for credit cards through cashback sites. Sometimes, certain providers will run promotions whereby you can earn a cashback amount for applying for a card and using it.

Remember too that a credit card offers useful additional protection when you’re shopping online against fraud, as well as protection against providers who go bankrupt.

Additional protection services can be bought and may be included in card insurance, for items bought on the credit card and later found to be faulty, or lost or stolen. Credit cards offer additional protection compared to debit cards or cash in these instances.

You may wish to take out your own card protection in case you find yourself unable to meet repayments in the event of unemployment or sickness – check details with the provider to find out more.

For all the latest credit card offers and rates, go to a comparison site and do a search. You can even apply directly via the site for speed and your card should be with you in just a few days. Happy shopping!

Payday Loans Benefits – Most Significant Ones

There was a time when opting for a loan was such a lengthy process. People often used to get into financial crisis it used to take months for the bank to approve the loan and many times it would even deny it as well. Today we say that there is a solution for almost everything around us and this goes for the loan solution as well; payday loans are helping thousands of people out currently. People are no more suffering because of the long bank loan procedures; payday loans have long defeated bank loans.

So what basically are these payday loans? Well, payday loans pretty much tell everything about themselves through their name. Payday loans are not long term loans; they are given for around a month or simply till your next payday arrives. These are limited amount loans you can avail in case of emergencies. The process is too fast since usually no credit check is done and the verification of your bank account, social security number, and job is done quickly. It hardly takes a day or two for the loan to get approved and wired to your bank account. This is the main reason why payday loans are so popular today; they get approved too quickly.

You can easily take care of any debts by through payday loans, paying school fee, house repairs, car repairs, office renovation, bills, credit card debts, and other such emergencies can be taken care of easily.

Payday loans do however carry a higher rate of interest with them. This is the only way the lender makes money too. When your next payday arrives, the loan money will automatically get deducted from your bank account along with the interest as well. However, you can find a few lenders who will offer cheap payday loans just to get some business. Another way of lowering the cost of your payday loan is pledging collateral like your car or house; this can also let you avail a bigger amount of loan at times.

Since there is no credit check done in most of the cases; people with bad credit can also go for payday loans easily and improve their credit rating by paying the loan back. Also, there is no necessity that you have to pledge something however this will raise the interest rate since the lender is risking the money and no security is being kept either.