Before Thanksgiving - Credit card offers in the mail
Just before Thanksgiving - Black Friday offers, same as cash offers
After thanksgiving but before Christmas - All of the retailer offers
After Christmas but before New Years - Retailer after Christmas sales and payday loan offers
After New Years - More payday loan offers and "buy with your taxes" sales
Before Thanksgiving consumer's mail boxes fill up with offers from credit card companies in nice bold 200 font letters promising the moon. What most do not know is the rates are generally higher than the offers presented earlier in the year. Most consumers do not look into that but rather see an opportunity the getting everything they want to but for Christmas and having some cash still in their pockets? With that strategy, their "pocket money" will be short lived. It will be spent on one of many things ranging from gas on an extra trip, to maybe a few extra gifts. Nothing wrong with that except for the false security to took to have the additional funds.
If the consumer is not careful, the money spiral will go downward. Once it appears that the funnel has run dry, consumers tend to fall back on to the hopes of their tax return. Within that grace period consumers will be flooded with payday loans because the credit card bills from Christmas are coming due and consumers are most certain it's okay to take on a short term high risk loan.
Then of course the tax money comes in, all of the bills are paid off and the higher interest credit cards get quietly tucked away into the wallet and purse. It is a little known fact that 78% of those credit cards are maxed out by the summer and are in danger of a 30 day late payment. As insignificant as that may seem, 'one little late payment', can cost a consumer 60-90 points on their credit score. 56% of those cases get dropped by their credit card company by fall and the next round of credit cards those consumers receive are double the interest rates of the previous. A little piece of the pie can cost a consumer most of the pie. Sometimes the most attractive offer is not always the best offer .... in time.
Richard M Mercer Jr (free contributor)