Bad Credit Unsecured Personal Loans and Credit Card Used for Holiday Shopping – Alternatives to Cash Advance Payday Loan
Posted on | December 10, 2010 | No Comments
As the Christmas holiday shopping season is upon us it is the case that millions of Americans will likely purchase on credit over the next three weeks. Two very popular ways to borrow money in the current economic environment include bad credit unsecured personal loans and poor credit credit cards. Before deciding to borrow money to purchase Christmas gifts it is important to understand the options and consequences.
With a very poor credit score, well below 680, customers are finding that interest rates are extremely high on credit cards and personal loans. Some borrowers are finding that interest rates above 25% are quite common. With this being the case it is always a very smart decision to have an exit plan when it comes to borrowing money with very bad credit.
Some customers may consider a cash advance payday loan if they know they will have money in their bank account with their next paycheck but it is important to understand that this is a very risky process. Customers generally pay upfront fees between $15 and $35 for every $100 borrowed. While this may not seem like a significant amount of cash it can add up quickly.
It is also the case that these upfront fees reset each time a customer receives a paycheck and does not pay the loan off in full. With this being the case some customers are finding that they end up paying much more in fees than the actual loan amount. This is another reason it is extremely important to have an exit plan when it comes to borrowing money.
When doing Christmas shopping in 2010 it is extremely important to budget money wisely and make sure that excessive funds are not being spent. Unfortunately, many Americans end up spending much more money than they had during the Christmas holiday shopping season which in turn makes it very difficult to get ahead in 2011.
Author: Heather Best
Tags: Bad Credit Credit Cards > bad credit loans > Bad Credit Unsecured Personal Loans > cash advance bad credit loans > cash advance payday loans > poor credit cash advance
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