Think Money: Preparation important for Christmas borrowers

Financial solutions company Think Money advises Christmas shoppers who plan on borrowing money to think carefully about the type of borrowing they choose.

Online PR News – 26-November-2010 – – Financial solutions company Think Money has advised Christmas shoppers who plan on borrowing money to cover their costs to think carefully about the type of borrowing they choose.

At this traditionally expensive time of year, it's likely that many of us will borrow money to relieve the burden on our finances - whether that's on a credit card, an overdraft or a personal loan.

One of the most convenient ways of borrowing for many shoppers will be on their overdraft. An overdraft facility acts as a 'safety net' against overspending - so those who do end up spending slightly more than they have in their account will have something to fall back on.

But an expert at Think Money warns that overdraft users must be cautious about exceeding their limits, or they could face costly charges from their bank.

"Without an agreed overdraft limit, any spending that takes your account balance below zero is likely to land you with a charge, which could be difficult to pay back at this already expensive time of year. This is why it's important that people are prepared.

"If you think you may go overdrawn, contact your bank and arrange an agreed overdraft. This can save a lot of hassle in the long run.

"But anyone who feels they may still struggle with their costs because of existing debts should avoid borrowing altogether, as it could make their situation a lot worse. Instead, they may want to talk to an expert about whether there are any solutions that could help, such as better budgeting or a debt management plan."

Notes to Editors

Think Money is one of the UK's leading financial solutions providers, delivering a comprehensive range of financial solutions, including loan, insurance and banking solutions.

Think Money defines its mission as 'To educate, rehabilitate and advise on all aspects of financial management'.

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