As we approach what for many people can be a very stressful time of year, many people are now starting to panic about Christmas and where they will get the money from to pay for it! While this is an annual event for many, it is something which is becoming more and more difficult to finance, leading to people getting into more and more debt.  But what will happen this year?

For those families who maybe have a limited income coming into their home, or may have had financial problems in the recent past, the main stream finance industry may be beyond their reach.  The recent credit crunch has also focused the minds of the banks, many of whom have been turning away business over the last few weeks.  While some may see them as a life saver at this time of the year, we are set to see an increase in activity among the so called “door step” lenders.  Many will be offering cash on the day, but their interest rates even after the recent tightening of the laws will still be enormous.  So is there a real solution?

Unfortunately for those in a situation where income is minimal and they do not own their own home, the “door step” lenders are their last resort.  Many end up paying back their original loan amount many times over, but because of the pay back period they may feel it is the lesser of two evils - forgetting Christmas or getting into debt!

While there are some of these lenders who offer a very good and professional service, the history of the industry is littered with firms who have taken advantage of their customers situation, signing them up to loans they will take years to pay back - with massive interest payments.  If at all possible it is best to steer clear of these lenders, but for many at this time of the year that may be easier said than done!