Holiday spending could pressure people for quick cash - WRCBtv.com | Chattanooga News, Weather & Sports

Holiday spending could pressure people for quick cash

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CHATTANOOGA, TN (WRCB) - Its no secret holiday spending can put a burden on your finances. People are prepared to spend an extra $400 this holiday season, according to this year's consumer reports.
     
For people on a tight budget, getting quick cash could mean getting into even more debt in the future.

"It's a quick way to get some cash," said Matthew Parker, manager, "If they've got something to, guns, jewelry, electronics."
     
Business is best at Posey Gun and Pawn during the holiday season. People stop in looking to sell their gold or guns, or to pawn them for temporary cash.     

"People spend a lot of money," Parker said, "And just need a little extra cash for that just to get them through."
     
Spending money they don't always have. Consumer Reports said seven percent of Americans are still paying off last year's holiday spending.
     
Other types of businesses that give payday loans offer to help.

"So the appeal is that it's simple and it's easy," said Heather Osteen of Credit Consumer Counseling, "And there's no credit check."
     
But advisors at Credit Consumer Counseling warn people of their future bill, saying an annual percentage rate (APR) on payday loans ranges from 300 to 400 percent.

"They are purposely geared toward being simple and easy to obtain," Osteen said, "So we as consumers need to educate ourselves on other options."
     
Most importantly, Osteen recommends making a holiday budget and sticking to it. But if it's too late for that, she does offer other financial tips.

"You can go to a credit union, you can go to a bank, and ask them for a short term loan," Osteen said, "See what your options are."
     
Osteen points out even credit cards have a capped APR and could be a less expensive option.

"The other options, overtime at work, maybe even asking for an advance on your paycheck from HR because there's no interest attached there," she said.
     
It can be easy to find yourself stressing over holiday spending but don't forget what the holidays are all about

"Take a deep breath and realize that family and friend time is the most important," Osteen said, "Time is the biggest gift you can give. period."

In Tennessee the maximum loan amount for payday loans is $500.
     
But, a person can have up to four payday loans out at any given time.
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