17 November 2005
Consumers have been told that smart borrowing will be the key to their ability to survive the inevitably-draining Christmas period.
Richard Duvall, chief executive of online lending and borrowing exchange Zopa, told the Telegraph that a low-cost personal loan would provide a better option than a pricey short-term credit deal for people needing a festive cash fix.
Given that half of the UK's population exceeded their monthly pay with their Christmas expenses last year, it certainly makes sense to scour the market thoroughly to minimise your overall outlay.
Mr Duvall explained: "Christmas is an expensive time of year and for most people borrowing is a fact of life. The issue at this time of year is to be clever in how you borrow.
"Cards are easy but expensive and, given that most people spread the cost of repaying Christmas over a number of months, a low-cost loan without early repayment penalties fits the bill better than expensive short-term credit with lots of nasty catches."
Customers have particularly been warned that only those with excellent credit ratings are likely to be able to benefit from the various headline-grabbing offers to be seen at this time of year – and that application for a service which is beyond them could damage their records further.
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