More Americans are Taking Out Loans to Finance the Holiday Season

0
31

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