Avoid instant cash loans to avoid a Christmas hangoverMany of us may be a bit too keen to celebrate the festive season this year, but waking up with a debt-related Christmas hangover is a fate to avoid.

It’s not terribly uncommon to ‘tie one on’ during your Christmas celebration, and for some people in the UK the ‘day after hangover’ is a bit of an unpleasant tradition that seems to roll around every year, no matter how vehemently you swear that your New Year’s resolution is to avoid such a fate the next time around. However, you could be setting yourself up for an even worse Christmas hangover if you take out instant cash loans to finance any festivities or shopping trips this December, making January a particularly miserable month for you if you’re not careful.

 Easy money, difficulties in repayment

Payday advance lenders like QuickQuid and Wonga are constantly bombarding potential customers with adverts that focus on how easy it is to take out short term loans from them. In actuality it is indeed quite easy to qualify for such lending, as these lenders – and many more – will offer no credit check payday loans to anyone with proof of employment, whether or not these prospective borrowers will be able to repay the loan without issue at the end of the month.

In addition, there is little regulation of the payday lending market at the moment, which leads lenders to charge quite literally anything they want when it comes down to interest rates on their loans. In fact Wonga – the industry leader – charges an eye watering 4,214 per cent annualised interest rate on a large proportion of its loans, and if you miss your initial repayment you can fall victim to skyrocketing compounded interest, not to mention late fees that are downright punishing, leaving you quite bent out of shape financially for months afterward.

cash is king

However, there are ways to avoid the Christmas payday loan headache and still have a happy, memorable festive season. First and foremost taking out a payday loan for anything but a dire need of emergency cash in order to cope with a sudden, unforeseen occurrence should be avoided at all costs,especially in the current economy where so many Brits are living pay cheque to pay cheque – that is, if they are still in employment at all.

The best way to avoid over-extending yourself is to prioritise your spending this month, and to take steps to avoid paying in anything but cash if you can’t help it. Making sure that all your bills are paid first and foremost is the absolute most important thing, as you’ll need to put money aside for your rent or mortgage repayment, your food budget, utilities, and miscellaneous expenses such as filling your car up with petrol at the garage so you can get to and from work; only after you’ve sussed out what you need to afford all these expenses can you spend your remaining cash on gifts for loved ones or a night out with friends to celebrate the season.

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Image: Hangover on Board Badge by Annie Mole