Tag Archives: holiday
How to Get Good Treats from Holidays Debt
Even without cash at hand, it is still easy for people not to ignore their needs and wants during the holidays. Just imagine the gifts they have to give to all of those loved ones and colleagues, the dinner parties they had to throw, the holiday vacation with the entire family, and a lot more fun and exciting holiday activities. All of these needed cash to pull through. And the best solution during these times is credit cards.
However, as much as it was easy to get these good things during the holidays, it was easy as well for people to get piled on with hefty credit card debt. When the rush and frenzy of the holiday shopping has died down and reality sets back in, people are left with the inescapable truth, that they have to pay what they owe in order to free themselves from heavy burdens of debt.
Paying back a credit card debt means monthly payments. Whats more is that not only people have to pay debt from one single card but a lot of different cards as well. Each person can have as many as eight different cards all at once, so chances are they have used each or most of it during the holidays. The result is bigger debt thus bigger money spent each month for repayments.
Its a bitter reality when people have to prioritise payment of debt. Since they are unavoidable nonetheless, why not make something good out of it?
Increase credit score. Pay well and pay on time. People must not miss a due date until theyve paid all of their debt. After doing this will pave their way in to an increased credit limit which is helpful for bigger loans in the future such as a house loan. They will also get a better shot at good jobs because good employers would want to hire financially responsible employees.
Get rewards. With each swipe, some of the best credit cards offer corresponding rewards to accumulated points. Some rewards go as luxurious as free international airfares, glitzy tech gadgets, generous shopping sprees and more.
Money that goes out for repayment is money lost. So what about savings and emergency funds? Guess they will have to take a backseat until all debts have been cleared or at least until people have paid enough to actually go back to their old routine of saving. As for now, people must take advantage of what credit card debt has good to offer.
Unsecured Loans- Money without security
Unsecured Loans do not require you to pledge any of our assets as security against the loan procured. Tenants, self-employed, students, non-homeowners, and those living with parents are the ones who normally go for unsecured loans. However, those who own a home but do not wish to risk it also apply for these loans.
The risk associated with the unsecured loan deal for the lender is generally higher than that with secured loan. So, unsecured loans are available at comparatively higher APRs. But these loans are a safer and easy option for the borrower. Unsecured loans get processed fast because of the legal formalities concerning to the property evaluation.
Cited below are the different kinds of unsecured loans:
- Unsecured debt consolidation loans: This loan is ideal for those who do not have any property to back up but are tired of managing their multiple debts. This loan can pay off their running debt and covert them into a single monthly payment. Unsecured Debt consolidation loans carry a high interest rate.
- Unsecured home improvement loans: Unsecured loans that are availed for home improvements like renovating the kitchen, designing the garden, home expansion, landscaping etc and do not require any security to back up are called unsecured home improvement loans.
- Unsecured holiday loans: Planning to go for a holiday but do not have the required money? Avail unsecured holiday loan to plan the holiday for the lifetime. Though unsecured loans come with high interest rates, with increased competition in the loan market, one can always look for a competitive loan deal.
- Unsecured business loans: These are best for those who need to fund commercial needs, start a new business or expand the existing one. Unsecured business loans are generally taken to fund small monetary needs like buying machinery, paying suppliers and others.
Apart from these, there can be other online unsecured loans as well. The greatest advantage of unsecured loans is that they give mental peace to the borrowers since no property is at risk.