You have big plans for overhauling your finances in the new year. You have been disciplined about spending for as long as you can remember, but despite cutting out all unnecessary spending in order to put every possible penny toward debt repayment, your debt balances stubbornly stay the same, or even inch higher. Making a big change to your financial situation requires research, planning, and preparation. For example, it takes more than just a few clicks to file for bankruptcy protection. While it is possible to borrow an unsecured personal loan with just a few clicks, it is inadvisable to do so. Everything was going fine with your plans to file for bankruptcy or consolidate or restructure your debts outside of court, and then the holiday season came along. Now the glittery decorations and candy-striped desserts that are ubiquitous at this time of year are breaking your concentration. It is much easier to stay the course and stick to your debt reduction plan during the holidays if you enlist the help of an Oakland lawsuits, collections, and creditor harassment lawyer.
Personal Loan Interest Rates Only a Grinch Could Love
Consolidating your debt with an unsecured personal loan can be an effective way of saving money on interest, or it can just be another debt to struggle to repay, depending on the circumstances. The idea behind consolidating your debt is that you take out a loan with a principal amount big enough to pay off one or more of your interest-bearing debts, such as credit cards or your car loan. You pay off your expensive debts immediately, leaving you with a lower-interest loan to repay.
The trouble is finding a personal loan with a low enough interest rate to make the whole debt consolidation endeavor worthwhile. The availability of affordable loans depends in part on your credit score, but it also depends on the federal funds rate and the demand for loans. One of the symptoms of financial long COVID is that demand for debt consolidation loans has been consistently high for the past three years. As of December 2023, the average interest rate for unsecured personal loans is a whopping 22%.
Holiday Shoppers Go All Out With BNPL
The effortlessness of buy now pay later (BNPL) is both a blessing and a curse. If all goes well, then you can simply pay off your purchases without accruing interest. If not, you end up paying as much in addition to the sticker price of the item as if you had used a credit card. Since there is no credit check, BNPL lenders are equally willing to people who can easily keep up with payments and to people who cannot. BNPL is more popular than ever this holiday season, and, on average, BNPL shoppers spend 20 percent more than shoppers who pay with debit cards.
Contact the Law Office of Melanie Tavare About Getting Through the Holiday Season
A debt relief lawyer can help you focus on long-term strategy instead of racking up lots of BNPL debt this holiday season. Contact the Law Office of Melanie Tavare in Oakland, California, or call (510)255-4646 for a free case evaluation.
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