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EPR Archived News |
The myth of the Christmas loanReleased on = October 13, 2005, 8:50 am Press Release Author = Rachel Lane Industry = Financial Press Release Summary = There is no such thing as a Christmas loan, but there is such a thing as clever marketing Press Release Body = If you think Harry Potter was going to be the most imaginative marketing plot this Christmas, think again. Each Christmas as consumers look at their finances and investigate the different sources of funding to cover their Christmas shopping, loan companies and credit card providers polish up their marketing tactics and customer service skills. No doubt some of you will see an advertisement for a Christmas loan over the next few months. Unfortunately for you it’s not provided by a jollyvaceous (curvy and happy) bearded man in a red, furry suit. It’s more likely to be a cunning marketing initiative by a loans company, designed to exploit consumer cash concerns over Christmas. If you need credit over Christmas – you will probably fare better with a credit
card, but if you have to take out a loan, you’d be better to search for a standard
personal loan, on a secured or unsecured basis. There are plenty of sites which
offer price comparison services for credit cards and loans. The most popular ones
include moneynet, moneysupermarket and lowermybills, but if you really want the best When searching for a credit card – there are several things you need to consider.
Firstly, you may wish to transfer existing debt from your old credit card, by taking
advantage of an introductory interest free period on a new credit card. Despite the
apparent 0% interest rate on all balance transfers – do ensure that you are
genuinely being charged no interest and that once the interest free period is over – Credit cards offer you greater flexibility in your repayments than personal loans, though credit cards may be sold with higher rates of interest. You can pay off the balance on your credit card early without a charge and as long as you track what you’re buying on plastic and set up minimum repayments, you’re likely to manage the debt effectively. However, do bear in mind that late repayments and fines may affect your credit history, so don’t assume that just because you can’t see the debt that it isn’t there. Personal loans can be a suitable credit solution – if you need to make the
repayments over a longer period. However, you need to be a realistic about the
total repayments – firstly that you can afford them and secondly – that you’re
prepared to make all of them. For example, if you decide half way through the term
of the loan that you could actually afford to pay it off in full, you should be
aware that there will probably be an early repayment charge which may bring the Credit is for life, not just for Christmas; what you pile on to plastic in December may lead to a significant financial hangover in January. The best thing you can do is plan your shopping in advance, shop around (including online) and stick to your list of what you intend to buy – no impulse purchases! * * * * * * * * * * * * * * * * * * * * * Resources http://www.moneynet.co.uk/loans/index.shtml Price comparison research for loans http://www.moneynet.co.uk/personal-loan-guide/index.shtml Personal loan consumer guide About Rachel: Rachel writes for the personal finance blog Cashzilla – a mighty http://www.cashzilla.co.uk Web Site = http://www.cashzilla.co.uk Contact Details = E-mail: rachel@positiveinterest.com Phone: 0131 561 2251
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