Survey: 4M intend to use bad credit loans this christmas

A survey conducted by the R3 Insolvency Trade Body shows that the pressures of the Christmas season will push adults to take on bad credit loans. This is despite the results of another survey saying that Americans are likely to spend less this year than they did last year.

R3 researchers express worry on the number of individuals who are seriously considering of taking bad credit loans just to cover the cost of Christmas. Apparently even though gifts are fewer this year than last year, Christmas dinners and parties are still two strong reasons to spend. Add to that the desire of some to go home to their families regardless of the cost of plane tickets.

Bad Credit Loans Companies Intensify Marketing Efforts

According to a financial analyst, the main reason why you cannot seem to avoid the pull of bad credit loans this Holiday season is because of the companies’ intensified marketing efforts. Not only are ads placed everywhere on the Internet, they have also conquered the other forms of media like TV and print. Other than that, some bad credit companies have even taken the time to sponsor teams of athletes.

Coupled with the discount sales implemented by retail chains, the pull to spend is even made stronger. Hence, even if you have already vowed not to buy too many presents, you will still do but without you planning for it. In the world of material things, the best marketing efforts can really do you to overspend, say analysts.

Consumers Advised to Save

Financial analysts warn that you should not overspend. The scheduled implementation of budget cuts and increased tax collection on December 31, 2012 should be enough to encourage you to spend. Taking on too many bad credit loans at this time is not only irresponsible but also useless.

Bad credit loans are only short-term loans and having too many of them at once will only get you into more trouble next year. Remember that you have only one paycheck and thus, you cannot pay for all your debts and still have enough to cope with the changes in the economy. A researcher from R3 says that the money you spend this Holiday season must equal the amount that you really need to shell out. Take care not to overspend and to use the last days of the year to save as much as possible. This will help you survive the fiscal cliff next year and still enjoy Christmas too.