Strong home price appreciation could boost spending

Following the holidays, many Americans pull back on spending, as they attempt to to cancel out the heightened levels of consumption in the past couple of months. However, strong home price appreciation could keep consumers confident enough to continue spending.

In November, prices nationwide jumped 11.8 percent on a year-over-year basis, and 0.1 percent from the previous month, according to the CoreLogic Home Price Index (HPI) Report. Appreciation is expected to remain strong when December's report is released, as the Pending HPI projects an 11.5 percent annual increase and 0.2 percent month-over-month bump.

"On a year-over-year basis, home prices have appreciated every month in 2013. Twenty-one states and the District of Columbia are now at or within 10 percent of their peaks," said Anand Nallathambi, president and CEO of CoreLogic. "The outlook for 2014 looks a bit less robust as regulatory complexities and tight credit can be expected to cool the housing market."

The strongest gain came in Nevada, where home prices were up 25.3 percent, followed by California, Michigan, Arizona and Georgia - all posting appreciation greater than 13 percent. Arkansas was the only state with depreciation, as prices dropped 1.1 percent.

Short term lending could help people who continue to spend

Americans who continue to spend at a high level following the holidays could run into future financial troubles if an unexpected expense arises. For example, if someone has a surprise trip to the emergency room, it may be difficult to cover out-of-pocket expenses and stay current on monthly essentials.

To help avoid any potential late fees and penalties, consumers could rely on short term lending. This type of loan can provide funds quickly to ensure that people stay current on all monthly bills in difficult financial times.

However, many people are unaware of the benefits of short term lending due to the stigma surrounding it. Critics claim that these types of loans come with high fees and interest rates that are unfair to consumers, but that isn't necessarily the case. The amount of money people would be charged in late fees and penalties if a bill payment is missed if often higher than what is paid to secure a short term loan. Also, the term for these loans is generally two weeks maximum, which means the interest expenses doesn't accrue for too long.