Posted under Budgeting & Kitchener-Waterloo Community
This past Saturday, I was interviewed in my Kitchener Waterloo bankruptcy office by Andrea Hartling of CTV. She was doing a special on Christmas Spending which aired on the 6:00pm and 11:30pm news. We spent time talking about the impact of over spending during the Christmas season. We also discussed things consumers should consider given there is less than 2 weeks until Christmas. The most important reminder I have is – you need a PLAN.
First, be like Santa – make a LIST and check it TWICE. That is, look at who you have to buy for, what you already have bought and then make a list for what still needs to be purchased. Don’t forget to consider all the extra costs this time of year, such as:
- turkey and fixings for Christmas dinner,
- entertaining items for the guests, like appetizers, and drinks,
- gas for the car to go visit Grandma and family over the holidays, and
- extra child care costs with school out for 2 weeks.
Now before you go to the mall, decide how much more you still can afford to spend. Remember that list you have been making? Check it twice now. Try to determine how much the outstanding items on the list will cost. One great tool is to use the internet to price out what you think you still need to purchase. Then ask yourself this: “How big of a credit card bill do I want to get in January.” If you don’t want a credit card bill, pay cash. Otherwise, only spend what you can afford to repay in January.
The Bank of Canada put a warning out to consumers this week stating that the Canadian debt to income ratio has reached 146 per cent! Now is not the time to over spend if you are not able to pay for it in January.
If you are out of cash, look for alternatives. Talk with your family about gift exchange so you are buying for less people or make Christmas dinner a pot luck meal to spread out the costs. Give your time as gifts, such as:
i. Babysit your sister’s kids so they can have a date night at the movies
ii. Do your relative’s laundry and ironing for a month
iii. Make a coupon book with various things you can help out with
iv. Be creative
If you have been stressing about your financial situation during this holiday season and want to make a plan to deal with your debts, contact me via e-mail or telephone at 310-PLAN. My Kitchener Waterloo office is located at 607 Kings Street West in Kitchener.
