Edmonton man concerned about holiday debt

Managing Holiday Debt: Advice from Your Trusted Edmonton LIT

Black Friday is looming, and the holidays are right around the corner. Christmas shopping and holiday debt can cause major stress. With a good budget and careful spending, it is possible to avoid the holiday debt trap. If you do overspend, it is absolutely possible to get yourself back on track. In this week’s article, our licensed insolvency trustees will discuss how to manage holiday debt and what to do if you lose control of your debts.

The Holidays Can Be Overwhelming

The holidays can be financially and emotionally overwhelming. If you find it difficult to manage holiday debt and find yourself overspending each year, you are not alone. A quarter of Canadians reported that the financial pressures of the holiday season have a negative impact on their mental health. The average Canadian will spend $675 extra during the holiday season, and one in three Canadians typically overspends at this time of year. People tend to think of gifts as the cause of holiday debt – and to be sure, gifts are a major contributor to overspending at this time of year – but the extra expenses for holiday entertaining such as alcohol and food are also significant factors. People often don’t budget for those extra expenses in the same way that they might for big-ticket gifts. To give you an idea of just how much people spend on food, beverages, and gifts over the holidays, have a look at some statistics our credit counselling service team discussed in our previous holiday debt blog.

 

Tips To Avoid Holiday Debt from Our Credit Counselling Team

Managing spending is the best way to avoid debt. The best way to do this is to set boundaries and limits when it comes to spending, entertaining, and gift giving. Here are some of the top tips from our credit counselling service professionals:

  • Set a budget for the holidays, and then stick to it. Statistics suggest that only 40% of Canadians set a budget for holiday spending, and more than 50% of those who do budget for the holiday season end up going over budget.

  • A great way to set a realistic budget is to look at your bank accounts and credit card statements to see your spending over the holidays last year (or save all of your receipts during the holidays this year and total them up at the end of the season). Looking at the real numbers will tell you approximately how much extra you spend over the holidays, and how much you should budget for in the future.

  • Start saving in advance. Set a small amount aside each month throughout the year in anticipation of your increased spending over the holidays.

  • Minimize your use of credit cards over the holidays. It is all too easy to accumulate credit card debt that will carry over into the new year.

  • Talk to family, friends and coworkers about expectations with respect to gift-giving. Suggest a Secret Santa or gift exchange with bigger groups, set a dollar limit on gifts, or agree to forego gifts altogether and focus on the time you spend together.

  • Avoid the temptation to buy things simply because they are on sale. Black Friday and Boxing Day sales are difficult to resist, but before buying anything, consider whether you really need it or are just buying it because it is a “good deal.”

  • Save all of your receipts so you can return items if after you get them home you realize you really don’t need the item or have overspent.

 

Debt Solutions In Case You Overspend During the Holidays

It is very easy for holiday spending to get out of control. The good news is that there are solutions to manage holiday debt. If your holiday spending puts you in a precarious financial position in the New Year, contact the friendly, knowledgeable team at Fox-Miles & Associates Inc. Our licenced insolvency trustee offers credit counselling, consumer proposals and personal bankruptcy guidance in Edmonton as part of our debt solution services. You do not have to let your debt continue to grow; there are always other options to get it under control. At Fox-Miles & Associates Inc., we will find the best options for improving your financial situation and to relieve your stress.

 

Schedule Your Free Credit Counselling Service Consultation In Edmonton

For credit counselling services and helpful financial advice from compassionate, qualified credit counsellors, call the offices of Fox-Miles & Associates Inc. today at 780-444-3939 to arrange your free consultation. We provide debt help and credit counselling services in Edmonton and to clients in the surrounding areas including Sherwood Park, Fort Saskatchewan, St. Albert, Spruce Grove, Stony Plain, Leduc, Hinton and Edson. We can help you avoid holiday debt, and if you are already drowning in holiday debt, Fox-Miles & Associates Inc.’s qualified credit counsellors can guide you back to the shores of financial stability.

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