With the holiday season already in full swing, over a
quarter of Americans are expected to go into debt to finance their
shopping. Whereas most
individuals and families across the U.S. and Canada might take out personal or
business loans to finance an enterprise or achieve their
goals, the holidays compel people to take out loans for gifts for the holidays.
It’s anticipated that as much as 1 in 10 Americans will take out a loan to
finance their holiday expenses.
Many will be using their credit cards, which are an expensive way to borrow
money. Credit card issuers charge much higher interest rates than other types
of lenders, and carrying a balance can quickly escalate out of control by
lingering for weeks and months, while racking up interest charges. This,
however, doesn’t discourage American consumers, who are expected to spend an
average of $1,679 on gifts this year. A survey by
Experian that polled more than 1,100 shoppers noted how that’s 75% higher than last year.
But while credit cards are generally the preferred way to shop around Christmas
time, holiday loans are also becoming a popular choice. One of the easiest options
is a title loan to give you that extra bit of cash when you need it most. Now,
these options are available online, with Thrive Global
stating how online title loan marketplaces have been growing in the last 20
years. This is good news for consumers who are unable to
borrow from banks and face an ever-present need.
As such, online title loan businesses are available in every state to fill this
need, and many are easing requirements to attract more borrowers. For example,
companies offering title loans in
Ohio are providing people with easier access to quick borrowing options by requiring vehicle titles as collateral. In
the sunshine state, California title loans offer same-date title loans for
those who live in the state. They qualify for loans based on collateral and
offer anywhere between 12-40 months repayment plans.
One advantage of title loans is that there is an inherent limit to the maximum
amount you can borrow against a vehicle or other collateral. For example, if your vehicle
is worth $2,500 that will be the maximum amount you’ll be able to borrow. Note that your vehicle must be paid off and must
not have other liens or payments owed. Another advantage is that loans are
short-term and you’ll have to pay them sooner, rather than later, which will
not overwhelm you in debt for an extended period.
When it comes to financing the holiday season, millennials are the most willing
to finance it through credit or loans. This is in part due to the fact that
many have young kids, which is a powerful spending force, especially around
Christmas time. Parents, therefore, are a lot more likely to overspend. There
are a lot of year-round expenses and come the holiday season they may be in a
pinch. As such, many will be looking to using loans to cover short-term
expenses for presents and other holiday spending
