Finance and Loan Guide

Consumers need to plan their finances carefully in the run-up to Christmas, an industry expert has declared.

According to Martin Lewis, creator of consumer website MoneySavingExpert, the festive period often puts Britons under increased pressure in their ability to manage their money. However, to avoid developing difficulties in handling their finances over the course of Christmas, which may see them struggle to pay utility bills and personal loans, people were urged to take the time to map out their outgoings. By starting to saving money now, he asserted that consumers could be in a much more favourable fiscal position in the new year.

Consequently, Mr Lewis advised that to lessen the “major financial burden” that is Christmas, by organising their spending now, consumers could find themselves in a better position to service demands on their outgoings over December. He stated that by planning to set money aside in the months preceding Christmas Day, it is possible to avoid trying to buy gifts and festive food, as well as regular spending commitments, all on December’s income. Otherwise, the analyst stated, consumers may be left with “costly debts in January”.

He said: “Christmas is on December 25th every year. So why do people act as if it’s a massive surprise and try to pay for all this massive expenditure in January? If you don’t prepare in advance, you can end up with serious debts and little to show for it. Yet get your act together right now, with a few easy actions and much of the damage is preventable”.

“A common mistake is to decide what kind of Christmas you want first, then trying to get it cheapest. Yet instead of asking ‘how can I get it cheapest?’, people should ask ‘what can I afford?’. Let Christmas be dictated by your finances because, lovely as it is, it’s not worth ruining the new year for.”

He added that those planning on funding their festive season by borrowing should do so with caution. With possible methods of getting credit including a personal loan, Mr Lewis urged consumers to be “sensible with [their] borrowing”. In addition, it was recommended that shoppers should take the time to browse the market for the most competitively priced gifts and look to make use of discount deals offered by supermarkets.

For those Britons worried that they may struggle in meeting the costs of Christmas this year, taking a low-rate personal loan could well be advisable way in funding such expenses. However, when applying for a loan, prospective borrowers should always look to be honest when filling out application forms. Earlier this year, Cifas, the UK fraud prevention service reported that those who tell mistruths on their paperwork about how much they earn in an attempt to get a fast loan will only do further damage to their history. And as a result, this could deter financial providers from offering borrowers cheap loans or see them refused credit altogether. Peter Hurst, chief executive for Cifas, reported that lenders now use fraud data sharing to find out if applicants are attempting to disguise a bad credit history.

Tom Dawson writes for Essentially Home Loans where visitors can apply for personal loans online, and also focuses on secured loans for UK residents. Visit Today: http://www.essentiallyhomeloans.co.uk

Starting a family may see the financial burden consumers are under rising dramatically, it has been suggested.

The news comes as research released by MoneyExpert reveals that those parents who have children under the age of 18 are typically some 1,140 pounds in debt in the 12 months following the birth of their first child. According to the finanical comparison website, more than a third (39 per cent) of couples see their income fall after the birth of their first child as at least one partner either works less hours, or gives up their job altogether, in the subsequent months after a birth.

And with over 40 per cent of new parents going into the red in the first year of having a child, such consumers could well struggle to meet demands for payments on areas of their finances such as utility bills, credit cards and home loans. Meanwhile, money management difficulties could be even more pronounced for the seven per cent of parents who are more than 2,500 pounds in debt, with two per cent owing over 7,000 pounds.

Research from the company also showed that three-quarters of those suffering from a loss in earnings as they have a child are looking to make up for such a shortfall. Some 28 per cent of these consumers turn to their family for finanical aid, while ten per cent are set to take out a loan to help relieve the pressure on their finances. Meanwhile, 22 per cent are to use credit cards as a means of supplementing their spending.

Sean Gardner, chief executive of MoneyExpert, said: “For most of us worries about money go out of the window with the joy of having a baby. It’s hard enough coping with the sleepless nights and new responsibilities without thinking about budgets. But financially a new baby can cause havoc because of the combined burden of extra costs and reduced income. If money is already tight, it’s no wonder that so many families have had to turn to borrowing to make ends meet.”

He added that as households are set to face increased costs, taking out a loan or another form of credit is often “a sensible way to tide you over”. As a result, Mr Gardner urged those considering borrowing money to take the time to choose the right product for them.

Meanwhile, the financial services firm’s debt index reveals that more than 2.48 million Britons are “very concerned” about their capacity to manage their finances as the series of interest rate increases by the Bank of England’s monetary policy committee starts to make its impact felt.

Accordingly, opting for a low-rate loan may be an advisable idea for those concerned that pressure on their finances is set to increase after they have a child. Last month, James Ketchell, from the Consumer Credit Counselling Service, reported that Britons are becoming evermore prepared to take out secured loans and apply other forms of credit as they get older due to becoming “used to the idea” of borrowing while at university. Mr Ketchell also reported that the majority of those applying for a loan use the money for “vital things”.

Mark Dawson writes for Loan-Arrangers .co.uk where visitors can compare loans online. Then apply for one of our low rate loans or bad credit secured loans.