Christmas shopping and bad debt
Christmas shopping has become expensive and bad debt quickly mounts up.
Christmas is a magical time of the year. It is a time that brings everyone together and enables us to spend time with our loved ones while reflecting on the year that has passed. It is a special time for all and for the whole month of December, and several months prior to that, the Christmas shopping begins.
Over the decades, Christmas has evolved. It has gone from being about spending time with family to spending money on gifts, some may say the enjoyment of giving has been surpassed by the expectation of having to purchase the most expensive and up-to-date gifts.
Modern Christmas Lists expensive shopping and bad debt
Children put together their Christmas lists, lists that have become incredibly expensive as the latest consoles, mobile phone and clothing can all add up. In a way, the parents feel like it is their responsibility to provide their children with the latest items to ensure that their children do not stand out from the rest for all the wrong reasons.
Of course, all of this comes at a cost. The consoles and games can cost almost £500 while the latest footwear can set parents back in excess of £100, it is an expensive time of the year and many struggle to keep up with the cost.
For families with several children, the costs can soar, especially when you factor in the cost of the food and any other outgoings. It is a month that can completely cripple families and individuals to the point where credit cards and loans become the only answer.
Expensive shopping and bad debt due to credit cards
Obtaining money in the form of a loan or a credit card can really ease the financial burden of Christmas, but ultimately it has to be paid back, however, quickly the costs can mount up and the debt can spiral out of control.
This makes it extremely important for people to understand just how much of a problem debt can be. While loans and credit cards are the only option for some families it does mean that they are committing themselves to repaying the loan or credit card over an agreed term. Suddenly, the costs of Christmas become a long term problem, particularly if the repayments roll onto the following Christmas.
All of this debt can be bad news for families as there is the risk of defaulting on payments, and then being hit by charges such as interest fees, late payments and even repossession. The whole situation can quickly become almost irretrievable.
Owing money and being in debt can lead to bad credit and this can cause a wide range of problems such as being unable to obtain mortgages, mobile phone contracts as well as being unable to lease a vehicle, the list is extensive.
This is where a clear understanding of debt and the problems it can cause should be acknowledged.
Regardless of how important it is to have a good Christmas, debt can be a dangerous thing, especially if it is not managed correctly because the problems it can cause can devastate lives and families.
The Money advice service offers advice on all manner of financial problems and worth taking a look at.
If you find yourself with a bad credit score but require a car, get in touch with us, CVS Ltd have been helping people lease cars for over a decade see Personal Car Leasing.