How to temper holiday spending, unexpected expenses

When Hanukkah, Christmas and Boxing Day approach, it should come as no surprise that many people are willing to nearly break the bank in order to provide their loved ones with a fun couple of days. Parents want to make sure their kids get the perfect presents during the winter holidays, and spouses often plan ahead to pick out the gift that their husband or wife wants. This is a time of the year when people swipe their credit cards or dole out bills without truly considering the financial effects this will bring in the near future.

But what if, directly after the holidays, an unexpected expense crops up? Let's say you nearly single-handedly kept some retailers afloat during the season, all but draining your bank account, and then your car breaks down. You need your vehicle to be able to do your job - so without a hefty bank account, you're going to need access to some form of credit.

This is where short term lenders can step in. They can be a very valuable source of alternative finance when times are tough, especially for British people who might have overspent as the holidays approach.

Dealing with holiday spending
According to The Mirror, around the holiday season of 2012, many people in the United Kingdom took out short term loans - 8 million loans totaling around £2 billion. The news source reported that the financial situation in the nation means that money is still tight for a number of people, prompting them to seek out other sources of finance where possible.

Only use loans when you need to
While The Mirror might have claimed that sources of alternative credit may be perfect when people need extra cash to spend on holiday gifts, lenders are the first to tell their clients that they should only borrow when unexpected expenses crop up. This way, they won't become dependent on these valuable sources of credit.

For instance, representatives from Alpha Loans recently released a blog post explaining that these types of loans need to only be applied to the essentials, like medical emergencies or necessary car repairs. The unidentified spokesperson noted that Alpha Loans, like so many others in the sector, puts the customers first and tries to ensure that the amounts being borrowed are used for the right reasons.