Should I get a payday loan to pay for Christmas?
By admin • Oct 9th, 2009 • Category: Loans
With Christmas coming up, a payday loan might be the best way to deal with your cash-flow problems.
If you haven’t saved up throughout the year, then your November pay packet is going to look scarily small, and your December one will arrive too late to help pay for Christmas. That’s where a payday loan comes in handy. You can borrow money with a payday loan against your December salary a month early – so you can get your Christmas shopping done early, and pay the money back when you get paid.
Payday loans are a quick and convenient way to borrow money, often giving you access to the cash within 24 hours, with the amount you’ve borrowed being transferred electronically into your bank account as soon as your payday loan request has been processed.
In years gone by, consumers needing extra cash to see them through Christmas could save in a Christmas savings club – but the collapse of Farepak just before Christmas 2006 has made many consumers wary about putting their money where they can’t see it.
With a payday loan, you borrow the money upfront, then pay it back, so there’s no chance of your Christmas money suddenly vanishing. The disadvantage to borrowing money, as opposed to saving it over the year, is that you pay a high APR rate (the money you pay back is much higher than the amount you borrow). But if you’re considering your 2009 Christmas spending now, rather than in January 2009, then saving slowly over the year isn’t an option for you anyway!
An increasing number of consumers are paying for Christmas on their credit cards – which is an option if you can secure a good credit card deal. The advantage to using a credit card over a payday loan is typically a lower APR rate. But the disadvantage is that, while your payday loan is paid off within the month, you don’t have to pay your credit card off with December’s salary, so there’s a temptation to leave your debt until another month, allowing it to mount up.
For those people unable to apply for a credit card or who have their credit card maxed out, a payday loan is definitely the best option for extra spending this Christmas – especially as payday loans are available based on employment status and monthly salary, with no credit check required.
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