Consolidate in the run up to Christmas
Although Christmas is still more than 3 months away, thousands of Brits have already starting to plan for the festive season.
Traditionally, Christmas is one of the most expensive times of year, and as you’d probably expect, it is also one of the most common times for consumers to run up high-end personal debts. In light of this fact, experts have advised any consumer who is already struggling with personal debt, to consider the possibility of debt consolidation loan as a means to lighten the pre season load.
Recent stats have revealed that the average family will spend anywhere between £200 to £1000 in the run up to the holiday season. The way in which budgets are spent does tend to differ, but the general consensus suggests that around 45% is spent on gifts for family and friends, with the remaining 55% spent on food, drink, decorations and party entertainment.
However, it is also noted that more and more families are also opting to go on holiday at Christmas time. For these families, the cost of Christmas can be scaled up considerably, with the average cost settling at around £1800. Popular Christmas destinations include Lapland, New York and strangely, Mexico.
Of course, the specific impact of Christmas is entirely dependant on socio-economic factors, which affect each family. The Holiday season presents a considerable burden to families living below the poverty line and for many; Christmas is the most dreaded time of year…from a financial perspective.
For this reason, a debt consolidation loan can be used to reduce a person’s monthly commitments, allowing them more room to manoeuvre with regards to covering the cost of Christmas. Also, if the person is a homeowner, they can also stand to receive a particularly good rate if they opt for a home loan.
In any event, it is wise to pay close attention to the annual percentage rate (APR) associated to all your credit agreements and choose a consolidation loan with an APR lower than the sum of your commitments.
