Would you take out an instant cash loan to buy presents for your kids?

Despite soaring inflation, UK parents are not planning to scrimp when it comes to buying Christmas presents for their kids.

But how are hard-pressed families going to afford to spend these large amounts? HSBC recently conducted research that found that 21% of households will borrow money to buy Christmas gifts. Some will use their overdraft or take out a personal or instant cash loan, while some people will ask their friends and family for a loan.

Instant cash loans can be a godsend when it comes to meeting unexpected emergency payments, but consumers should avoid the temptation to rely on these to finance their festive spending. The majority of people tend to overspend at Christmas, which is fine if you have the money to do so. But short term loans generally need to be repaid within 30 days and if that’s the case, the repayment date is likely to be before the majority of employees receive their end of January salary.

It is for this reason that we at paydayloans.info strongly encourage readers NOT to take out an instant cash loan this December. Why after all would you want to start 2012 with large amounts of expensive, short term debt? Instead, consider other cheaper (and longer term) forms of finance that’s not going to need to be repaid before the end of January, or attract the types of late payment penalties associated with short term loans.

© 2024 All rights reserved. Reproduction in whole or in part without permission is prohibited. See our copyright rules.

What do you think?

Please note that email addresses are not visible on approved comments.