Consumers have found that one way to get the cash they need without going through the harsh approval process of a bank is to get a payday loan. The best time of year for payday loan companies has been consistently the holiday season. This boom is because of a number of reasons, the main one is that the unexpected tends to happen at the worst times, which for most families, is during the Christmas shopping season, not to mention the bills that also need to be paid and the toys that just have to be bought during this time.
Unexpected Events, Unexpected Costs
We have all been there, the car breaks down, you get a flat or you fall off the roof hanging lights, breaking your leg so you can’t work for a month. Odds are, if any of these things are going to happen, it is going to be sometime between Thanksgiving and Christmas. The best way for people to get the cash they need when the unexpected happens is to get a payday loan. This type of loan can be deposited into a bank account within 24 hours of applying for the loan with the only stipulation being that the borrower does not have any other outstanding payday loans.
Bills To Pay, Things To Buy
Most families spend close to $1000 on Christmas presents for family and friends as well as children and even pets. The problem is that when families live on a tight budget, purchasing presents can be hard on the finances, especially when bills need to be paid. The fact is that utility companies and banks are unforgiving and frankly, do not care that it is the holiday season and that your kid just has to have the latest smartphone, they will, and can, shut off your lights, repossess your car and make your life miserable even though it is the holidays. Most people only need a few hundred dollars to get caught up and to just get through the holidays which is exactly what the payday loan will do. Getting a payday loan saves families every year from having to choose between giving their kids what they want for Christmas and making sure the bills are paid.
Some people argue that the payday loan route is a bad decision because of the Annual Percentage Rate, or the APR. What most people do not see is the key term in this; “Annual.” These are short term loans, generally only about 2 weeks so the interest charge is relatively cheap compared to that of what most people pay throughout a long-term loan through a bank. Whatever the case, payday loans continue to help families through the holiday season.