Holiday Season – Temptation to spend, spend, spend

How can you survive the holidays and beyond during this economic crisis?

Here are three things to consider when walking around the malls with your Christmas list.

1. Use cash, not credit cards. Use cash for your holiday spending. Credit card interest rates average between 18% and 25%. These rates are astronomically high. This means that an unpaid balance of $2,000 can cost you $4,000 or more to repay. Make paying cash a habit and leave the credit cards home when you hit the malls.

2. Spend Less and think of alternatives. It was reported on CTV news yesterday, many people are in a similar situation this year. Rather than spending excessive amounts on gifts, is this the year to consider gifts you can make; like baby-sitting, offering to do the household chores for mom, fixing Dad’s car?
These are gifts that are appreciated but do not actually cost too much. Discuss the topic with your family and friends. Think of what your mom always told you, it’s the thought that counts.

1. Reduce your debt. If you have credit card debt you are paying interest, greatly increasing the cost of your purchases. Debt also means you’re not calling the shots. The credit card company is now telling you when to pay, and how much. If you have debt, you are not in control. You can take immediate steps to reduce your debt to regain control of your finances.

The best way to avoid financial problems is to prevent them. Email us or call us at 310-PLAN or 519 622 3773 for more information on bankruptcy, budgeting and credit counselling.