Credit Squeeze Unlikely to Cool Down Christmas Spending

By: Angelo Drew

Borrowers are facing a tough time in the financial market - the global credit crunch has started to show its effects on the UK loan market. The loan conditions have become severe and it is no longer an easy thing to get a loan especially if you have a bad credit record. The sub-prime lenders have become selective and it has become difficult for the bad credit holders to get loans.

But, when it comes to Christmas spending Britons are just shrugging off the changes in the financial market. The higher interest rates and tightening loan conditions have not deterred the spirits of the festive season. A report by the business advisory firm Deloitte has revealed that Brits are likely to spend 7 per cent more on Christmas shopping this year than they did in 2006.

Many people take recourse to financing from the lenders in festive season just because they do not have enough savings to meet their expenses. No doubt, personal loans are your saviour in difficult times but still you need to strike a balance between your needs and your income. Personal loans should not be resorted to as a regular and routine source of funding.

Christmas time means that a lot of people will opt for Personal Loans to fund their festival expenses. There are obviously a lot of options available in the UK personal loan market. A borrower may get confused when he faces a market that offers so many loans. Building societies, high street banks and online lenders - all are offering different types of personal loans, having different terms and conditions. So, you should have a fair amount of market knowledge before you decide in favour of a particular loan. For this purpose, you can gather huge information from the Internet or you can seek the expert services of a local financial advisor.

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