It is that special time of year again, the holiday season! A time of year when you hope to spend time with loved ones, but then are expected to spend your money as well. Christmas can be a difficult time when you are barely making ends meet and still need to buy gifts for everyone. More unfortunately, creditors also know this and are happy to take advantage of your holiday desperation. Creditors will offer special Christmas loans with excessive hidden fees and interest rates. While these loans may save Christmas, they can ruin the upcoming year or years with never ending debt collection harassment.
During Christmas, creditors may offer Christmas loans. However, these are often a payday loan in disguise. A $500 Christmas loan may have a hidden $50 fee and an interest rate of 26+% per year. So, if you do not pay off the loan within 1 year, you have to pay around $175 just to access the funds. These type of loans are a dream for creditors and very often result in debt collection harassment.
Creditors will issues these loans to anyone with a bank account and some level income, regardless of credit history or ability to pay the loan back. Often, they know a consumer cannot pay these loans back timely. However, the loan company knows they can get a default judgement, garnishment, and take money out of your paycheck for several years while the loan balloons with interest and fees.
To further increase the debt, the payday loan company will take a post-dated check to automatically deduct payments. If there is not enough in the bank account, they will charge high overdraft fees. This all but guarantees that the person who takes out the loan will then become a victim of debt collection harassment.
Another way a Christmas loan can ruin you upcoming year is that the Christmas creditor may sell or share your data to several other lenders. This potential form of debt collection harassment may result in endless phone calls of people tying to sell you bad deals or, even worse, scam artists trying to steal from you.
While you may be trying to make this Christmas the best one ever, taking a Christmas loan out will definitely take away from your next Christmas. The money you spend on fees and interest could be enough to buy gifts all by itself. Also, you can save yourself from potential debt collection harassment for years in the future.
If you want to give gifts to your loved ones and are not sure if you can afford it, consider gifting them a special activity that has little to no fiscal costs. Consider gifting your loved ones certificates of time, redeemable for hours playing their favorite games with them, cooking for them, cleaning, or taking them camping. If you must buy gifts, be sure to get the most bang for you buck. Take advantage of credit cards that offer cash back and rewards on holiday purchases. However, avoid paying hidden fees and high interest rates to avoid being the next victim of debt collection harassment.
If you have taken out Christmas loans or any type of loan already and are currently experiencing debt collection harassment, contact an attorney Paramount Law today. Debt collection harassment attorneys can make debt collectors pay you up to $1,000 you can buy gifts for next Christmas with no hidden fees!