Single Moms Gear up for Xmas & Boost Your Holiday Spending by Understanding Personal Loan Mistakes

The Christmas holiday is supposed to be the biggest ever shopping holiday in the U.S.A., the U.K., and many other nations across the globe. Christmas calls for an incredible amount of shopping, celebrations, and merriment. Christmas shopping is blown out of proportion with shoppers spending more than $1 trillion in the U.S.A. and over £2 billion in the U.K. Right from presents to decorations to parties to cards, most of you would be saving all year or taking loans to spend on the Christmas merriment.

In this context, you must know that the Xmas time retail e-commerce revenues actually amounted to about $106.14 billion in the U.S.A. in 2017. It is forecasted that in 2018 the e-commerce holiday season’s total sales would be reaching almost $123.4 billion in the U.S.A. as per the statistics provided by https://www.statista.com.

 About 68.9 percent of the total gift givers would be using up their savings to make the purchases. Around 55.9 percent of the gift givers would be using their credit cards for making the necessary payments and around 5.4 percent of the gift givers would be depending on short-term payday loans towards Christmas spending as per statistics provided by https://www.finder.com. Young single moms usually find it difficult to make ends meet every month. However, they would like to provide the best to their kids at least, during the holiday season. They would not want their little ones to miss out on the fun, festivities, and celebrations associated with Xmas. We know that the holiday season brings in a lot of cheer and goodwill. So often, single mothers are compelled by circumstances to take out a personal loan to meet the additional holiday shopping and enjoyment requirements. In such a case, you must know about some of the personal loan mistakes that people often make but you have to avoid them in order to get a loan approval without any hassles.

Personal Loans: The Best Way to Boost Your Finances for Holiday Shopping

A personal loan could be an easy solution for your holiday shopping and merriment related financial needs.  Thanks to a smooth online process and hassle-free pre-approved offers today, it has really become easy to take out a personal loan for meeting your immediate expenses. However, you need to proceed with caution while applying for a personal loan since even a single mistake could culminate in greater financial issues. General carelessness or a lack of awareness while making a loan request could be leading to a huge debt trap and may culminate in a financial crisis which may adversely impact your family’s future. Here are a few personal loan mistakes to avoid so that you could reap the benefits of the personal loan during the festive season and at the same time manage your debt well.

The Biggest Personal Loan Mistakes to Avoid

Mistake No.1: Forgetting to Take into Account Your Repayment Ability

A personal loan could help you to get a financial backup whenever there is a financial crisis, however, it may also, lead to a financial crisis. So before putting in your personal loan request, you must consider the most important factor. You must evaluate your financial capacity to make the required loan repayments timely. You need to meticulously assess your financial situation and understand if the loan is affordable for you or not. If it is beyond your affordability, it is best to steer clear of it and look for other more viable options. You may consider using online EMI calculators for determining the loan amount as per your repayment capability before putting in a loan application.

Mistake No.2: Mindlessly Approaching Several Lenders in One Go

Every time you are seeking a loan from an online lender, immediately a query would be raised and accordingly it would be appearing clearly on your own credit report along with the date of the query. Remember that your credit score would be getting reduced with each fresh new query. When a number of queries have been raised in a very short period of time, you would be regarded as ‘credit hungry’ and that should be drastically reducing your loan application approval chances or you would be ending up with a personal loan with exorbitant interest rates. Seek quotes from only reputable and reliable sites such as https://www.libertylending.com/.

Mistake No.3: Not Being Transparent about Existing Loans    

You must not hesitate to reveal all details about your existing financial obligations and loans because the actual loan amount would be determined as per your commitment to all other current liabilities. If you do not want to be penalized for hiding facts, it is best to be completely transparent about your financial issues. If you try to be sly, your loan request could be declined or your interest rates would be going high as a penalty.

Mistake No. 4: Carelessly Glancing through the Documents    

You need to scrutinize meticulously each and every loan-related document. You simply cannot skim through the important and relevant paperwork. Go through the fine print attentively and understand clearly the implications. Examine all the relevant loan terms, interest rates, penalties, and applicable charges.

Mistake No.5: Not Checking Out the Options Carefully

Before you finalize a lender, you must make sure that you have done adequate research and homework on all other available loan options and lenders. You need to do a thorough comparative analysis. Compare prepayment clauses, interest rates, all applicable charges and penalties associated with the loan from various banks and other conventional or non-conventional financial institutions.   

Mistake No.6: Not Examining Your Credit Report

Always remember that the most crucial factor in your loan approval process is actually your credit score. You must examine your credit report meticulously so that you could spot the errors and seek necessary rectifications before putting in a loan request. You must keep in mind that in case your credit score is quite low, there are really fewer chances of your loan getting approved. Moreover, a loan rejection would be adversely impacting the credit score. For all these reasons, it is best to examine the credit score thoroughly and only then carry on with your loan application.

Conclusion

If single moms are determined to provide wonderful holiday season shopping, and celebration opportunities to their kids, they must necessarily take a quick note of all the personal loan-associated mistakes and avoid them. Once you are consciously avoiding these mistakes, you would be identifying better terms and better prices for your loans.