The Christmas period is that one time of year when our finances and budgets really get put under pressure! All this “trying to save money” talk gets thrown out of the window when it comes to buying presents for our families and friends. Not only does the majority of our monthly salary get spent on presents and food in preparation for Christmas Day, but there are many more bank holidays in this short period of time than any other month of the year.
Everyone loves a bank holiday, especially because its a day off work for most people, but bank holidays around Christmas time are particularly more expensive than any other. Most people will use the festive bank holidays to hit the shop Christmas sales or visit friends and family for a meal or a drink which means spending money! Not only do we naturally spend more money on a bank holiday, as many families will be out trying to make the most of it, but the New Year bank holiday is particularly expensive and quite frankly overpriced.
Many companies have come under fire for their constant increases in costs and charges on New Years Eve/Day most commonly bars, restaurants, travel agents and taxi firms who all increase their prices by as much as 100%. To put it simply, it’s almost like Payday Pixie doubling the interest rate on a payday loan just because you applied for it on New Years Eve, seems unfair right? Sadly there is no sign of this ever stopping with New Year rates creeping up almost every year. With many families really being plunged into financial difficulty at this time of year, it’s no surprise that more and more are turning to additional finance options such as payday loans in order make it through the month.
December and January have the highest number of payday loans applications
December is also the one month of the year when us British spend the most money throughout the entire year, with estimations that the average person will spend double in December what they would in any other month! Work Christmas parties, buying presents, food and alcohol all contribute to the amount that we spend over the festive season and as a result is the most popular time for people to take out payday loans.
December is quite an unusual month in which people will tend to get paid 2 weeks earlier so that they have the finances in their bank account to shop for Christmas presents and ensure that they are able to prepare for Christmas Day. However with December’s paycheck coming 2 weeks earlier, this also means that you have to try and last an extra 2 weeks until your next paycheck, usually in late January.
Although being paid a months salary just 2 weeks after your previous paycheck on paper sounds amazing, in reality many people struggle to budget and make their paycheck last until their next payday. Research has shown that 45% of UK consumers fail to save any money at the end of their paycheck, so imagine trying to last an extra 2 weeks without pay.
The festive period all the way through to the end of January is officially the most common time for UK consumers to turn to an additional source of finances. Payday loans continue to be the number one choice as a borrowing option over this period due to the fact that you can still apply and receive your payday loan on national bank holidays, something that banks and other short term lenders simply can not do.
With many banks closing over the Christmas period and with their rigorous application process that can take up to 2 weeks more and more people are now turning to short term loan providers to borrow in smaller amounts as opposed to the minimum £2,000 amount set by many high street banks.
Christmas is a very expensive time of the year, don’t be caught short on your finances. For a payday loan you can apply with pixie 24 hours a day, 7 days per week… And we don’t even close for Christmas!