The Holidays may be behind us, but for many Americans come January, that Christmas debt is a gift that will keep on giving or taking, depending on how you look at it.*
According to the National Retail Federation (NRF), U.S. consumers spend, on average, about $800 on gifts during the holiday season. (Another survey showed about 30% of consumers planned to spend in excess of $1000 on holiday shopping.)
Regardless of the amount spent, chances are it was more than originally planned. Overspending at Christmas is a common phenomenon for U.S. shoppers, especially parents: One study showed 62% of parents end up spending more on gifts for their kids than they anticipated.
Equally significant, nearly half of all consumers use credit cards to pay for their holiday purchases, according to the NRF. With average credit card interest rate at about 17.55%, it means shoppers that make only monthly-minimum payments on their credit card bills will be paying off those $800 in purchases over about 3 years.
One popular strategy is to apply for another credit card offering a more attractive interest rate than the one used for holiday shopping. Shop around and apply for the card offering the best interest rate and terms. Once the application is approved, transfer holiday debt to the new card. However, two important factors should be taken into consideration in order for the tactic to be successful: One, the card application must be accepted. Two, the consumer must resist the temptation to put additional charges on the new card.
If a credit card application is turned down, it may actually present the consumer with another important opportunity: They can request a credit report. Anytime a credit application is turned down, consumers have a right to review their report. This is a great time to scrutinize the report and work with credit agency that issued it to correct any errors. It may take a few months to iron out misinformation, but once the errors are remedied, the consumer may be better-positioned to get approved for a new credit card.
Zion Finance - Lend Up Can Help
One more way to manage Christmas debt is to simply apply for a personal loan, use the money to pay the bills, and look forward to one consistent and convenient monthly payment. This path comes with several advantages: Typically, interest rates are more attractive than those offered by card issuers. A personal loan can also mean one monthly payment. This can be especially helpful for consumers juggling numerous credit card accounts, each with different minimum payments, different late fees, multiple interest rates and increasingly-higher balances.
Personal loans can help in other ways as well. For instance, consumers hoping to clean up errors in their credit report may find a personal loan to be a smart way to pay off debt while waiting for discrepancies to get rectified.
Zion Finance - Lend Up can help. We offer personal loans to consumers and business owners alike to help them consolidate card debt and any other pressing expenses. Available loan amounts range from $2,600 to $100,000. Best of all our online application process is easy and we approve most applicants in less than 24 hours. Contact Zion Finance - Lend Up now to help manage your post-holiday debt.
Do you need a quick loan today? Zion Finance - Lend Up can help you with the loan you need, we offer personal loans and loans for business development. To apply e-mail: zionloanfirm.ltd@aol.com
According to the National Retail Federation (NRF), U.S. consumers spend, on average, about $800 on gifts during the holiday season. (Another survey showed about 30% of consumers planned to spend in excess of $1000 on holiday shopping.)
Regardless of the amount spent, chances are it was more than originally planned. Overspending at Christmas is a common phenomenon for U.S. shoppers, especially parents: One study showed 62% of parents end up spending more on gifts for their kids than they anticipated.
Equally significant, nearly half of all consumers use credit cards to pay for their holiday purchases, according to the NRF. With average credit card interest rate at about 17.55%, it means shoppers that make only monthly-minimum payments on their credit card bills will be paying off those $800 in purchases over about 3 years.
Solutions for Paying Off Christmas Debt
For consumers suffering from the post-Christmas blues due to their spending and maxed-out credit cards, there are a number of solutions to consider to help get bills paid and finances back on track:One popular strategy is to apply for another credit card offering a more attractive interest rate than the one used for holiday shopping. Shop around and apply for the card offering the best interest rate and terms. Once the application is approved, transfer holiday debt to the new card. However, two important factors should be taken into consideration in order for the tactic to be successful: One, the card application must be accepted. Two, the consumer must resist the temptation to put additional charges on the new card.
If a credit card application is turned down, it may actually present the consumer with another important opportunity: They can request a credit report. Anytime a credit application is turned down, consumers have a right to review their report. This is a great time to scrutinize the report and work with credit agency that issued it to correct any errors. It may take a few months to iron out misinformation, but once the errors are remedied, the consumer may be better-positioned to get approved for a new credit card.
Zion Finance - Lend Up Can Help
One more way to manage Christmas debt is to simply apply for a personal loan, use the money to pay the bills, and look forward to one consistent and convenient monthly payment. This path comes with several advantages: Typically, interest rates are more attractive than those offered by card issuers. A personal loan can also mean one monthly payment. This can be especially helpful for consumers juggling numerous credit card accounts, each with different minimum payments, different late fees, multiple interest rates and increasingly-higher balances.
Personal loans can help in other ways as well. For instance, consumers hoping to clean up errors in their credit report may find a personal loan to be a smart way to pay off debt while waiting for discrepancies to get rectified.
Zion Finance - Lend Up can help. We offer personal loans to consumers and business owners alike to help them consolidate card debt and any other pressing expenses. Available loan amounts range from $2,600 to $100,000. Best of all our online application process is easy and we approve most applicants in less than 24 hours. Contact Zion Finance - Lend Up now to help manage your post-holiday debt.
Do you need a quick loan today? Zion Finance - Lend Up can help you with the loan you need, we offer personal loans and loans for business development. To apply e-mail: zionloanfirm.ltd@aol.com
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