Applying for short-term loans in January is almost as popular as applying for a new gym membership.
But while the latter may be good for your health (if you go), the former could see you weighed down with even more financial worry.
It’s no surprise that short-term loans are almost a new year tradition in some households.
The food, the presents, the parties; the horror, when you finally build up the courage to look at your bank balance.
First things first, “Don’t panic.” You’re not alone.
Overspending at Christmas is extremely common. ‘Tis the season to be jolly after all.
What you need now is a plan of action, so you can get yourself back on track. And ready for some summer fun.
The temptation for many is to look to short-terms loans in order to aid this recovery. But short-term quick ‘fixes’ can often lead to long-term financial difficulties.
Why are short-term loans so potentially dangerous?
It’s not necessarily the length of the loan that’s the issue, more the reputation of the lender.
Short-term loans from payday lenders usually come with the unenviable combination of high interest rates and unaffordable monthly repayments.
When you’re trying to dig yourself out of a hole, they keep throwing soil at you.
Northern Community Bank doesn’t look at loan repayments like this. We’re here to give you a helping hand. To offer solutions to your current situation, not push you further into debt.
We challenge you to find a short-term lender that has a cheaper interest rate than what Northern Community Bank has to offer.
As an ethical alternative we’re not here to make profit, we’re here to help our account holders.
That’s why our repayments are tailored to suit your financial circumstances, allowing you to spread the cost over a manageable period.
That’s why if you wish to make any extra payments at any time, a Northern Community Bank loan has no early settlement or overpayments fees.
And, most importantly, that’s why we want to give you the tools and knowledge to best manage your finances to stop these problems appearing in the first place.
When should I start planning for next Christmas?
One of the easiest ways to avoid overspending is to sit down before you start your Christmas shopping and work out a budget that you’ll stick to.
At Northern Community Bank, we actually recommend putting a plan in place earlier than that.
All account holders are required to regularly save alongside making loan repayments, meaning they have a pot put aside should they need it in the future.
This creates better saving habits while also reducing the need to borrow.
For those wanting to go that little bit further, our Christmas Club is a cracker of an option.
This enables you to save throughout the year, but only make withdrawals during November and December.
You can join at any point, and depending on how much you put away, it could make managing your finances over the festive period a whole lot easier.
For more information on our Christmas savings account or advice on short-term loans, contact us on 01282 691333.
