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financial challenges

6 Typical Financial Challenges People Face During The Holidays

We all wish for a Merry Christmas and Happy Holidays, but unfortunately, the season can also bring a lot of financial challenges. Here are some of the most common financial challenges during the holidays, how to prevent them, and how you can quickly raise emergency cash in case it happens to you.

Typical Holiday Financial Challenges

1. You Can’t Afford Holiday Expenses

If you already have a tight monthly budget, it’s hard to find extra money for presents, decorations, and other holiday expenses. Consumer reports estimate that even a “conservative” holiday budget will add up to nearly $700—and many people can end up spending over $1,000 because they travel back home.

You have to be practical. Make a strict holiday budget and follow it. One way to prevent overspending is to pay for everything in cash: either withdraw it and divide the money into envelopes or transfer it to a debit card.

While this means you have to simplify your celebrations or prioritize purchases, you avoid financial challenges during the holidays and enter the New Year with your finances under control.

2. You Have Higher Utility Bills

Most people will have higher energy or utility bills during winter. The United States Energy Information Administration (EIA) has even projected that winter heating costs could go up by as much as 28% this year.

The price of heating depends on the size of the home and the kind of heating you use. If you use gas, the EIA estimates that heating costs would reach about $950. If you use electricity, heating costs would reach about $1,400.

This is one of the biggest financial challenges during the holidays, especially for states that have harsh winter weather. Arizona winters are much milder, but temperatures can still drop to about 7°C. To manage heating costs, improve house insulation, and use an energy-efficient heater.

3. Your Annual Bills Are Due

Most subscriptions and annual fees are due for renewal at the end of the year. This can include insurance premiums, subscriptions, and membership fees. It can be a nightmare to get the reminders and notifications, especially when you’re already stressed out over other holiday expenses.

 Unfortunately, this is one of those financial challenges during the holidays that can only be overcome with proper financial planning. Set aside money each month so you have it ready by the annual due date.

If money is really tight, cancel the subscription or put it on hold until your financial situation improves.

4. You Have A Medical Emergency

Unfortunately, the winter cold also increases risks for health problems, especially for the elderly or people whose immune systems are compromised because of heart disease, diabetes, etc. A simple cough or cold can develop into a respiratory infection, which requires hospitalization.

Aside from respiratory ailments, winter is also linked to a higher risk for falls and accidents because of the icy roads, or even heart attacks because of overexertion while shoveling the snow.

If you don’t have medical insurance, health problems can become big financial challenges during the holidays. That’s why it’s important to prevent disease and accidents—health is wealth!


5. You Have An Urgent Car Repair

 Winter doesn’t just affect your personal health; it can also damage the car and increase the risk of expensive repairs and maintenance.

Car parts that require liquids are especially vulnerable to damage. The heavy snow and salt on the roads can also clog up the motor, damage the windshield wiper, and cause metal parts (including the brakes) to deteriorate.

That’s why a lot of mechanics recommend winter maintenance. That also requires money, but it’s still cheaper than getting into an accident on the road. Either way, car costs are one of the most common financial challenges during the holidays.

6. You Need To Travel Home For Christmas

For many people, the most important part of the holidays is reuniting with friends and family back home. However, airfare and travel expenses are very expensive during this time of year, and driving home isn’t cheap because of the cost of gas.

No wonder travel can become one of the biggest financial challenges during the holidays. But there are ways to make it more affordable.

Book flights early, so you can avail yourself of early bird rates. Look for budget airlines or special promos. And while you’re scouting for travel deals, raise money by taking odd jobs, selling unused items, or taking extra shifts.

How To Solve Holiday Financial Challenges

Budgeting and planning can help you prepare for some of the costs. However, if you’re really short on cash and are unable to avoid the expense, you have the option to take out a title loan with Southwest Title Loans. You can borrow up to $15,000—and you don’t even need a high credit score or high income to qualify.

A title loan uses your vehicle title as collateral. You can use any kind of car, as long as it’s fully paid for and registered under your name. The title should also be lien-free, which basically means that there are no claims or court judgments against it.

To apply, just fill out the inquiry form. One of our loan officers can call you to explain more about the title loan and answer your questions. Then, go to the Southwest Title Loans branch with the vehicle title, a valid government-issued ID, and the vehicle for inspection.

The loan officer will check your documents and then inspect the car to verify the loan amount you can qualify for. Once the loan is approved, you get the money right away (or the next day, if it’s after the cut-off time).

Combat Typical Financial Challenges Now

So, if you’re facing financial challenges during the holidays, don’t worry—help is just one click away. Financial difficulties are not uncommon, especially during the holidays. If you are facing one or more of these circumstances, a title loan could be just the thing. Contact us to find out more about getting a title loan.

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.

Mason Roberts

Mason Roberts is a seasoned economics writer and blogger with a knack for breaking down and simply communicating the ever-changing world of finance. He is philosophically committed to the premise that financial knowledge equals financial freedom.

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