Avoiding Debt during the Holiday Season

The holiday season can be an exciting time. Most people enjoy looking for the perfect gifts for their friends and loved ones. Sometimes, though, people also end up spending more during the holidays than they had planned. This can leave them with mounting credit card debt and stress that will last long after the holiday season ends. You can avoid running up those bills by following these tips:

• Set a budget for your holiday spending and then stick to it.
• To keep costs reasonable, consider exchanging gifts with fewer people or exchanging handmade gifts or homemade goodies.
• Save before you shop.
• Make a list.
• Pay cash for all purchases.
• Pay off your credit card balances in full each month.
• Keep track of what you spend.
• Shop early.
• Look for sales and other discounts throughout the year.
• Look for ways to reduce your travel costs.

If you do go into debt to pay for Christmas, or other holidays, avoid using your credit cards again until the balances are paid off. Figure out a plan to pay off the balances as soon as you can by paying more than just the minimum required payments. Also, consider using your GST rebate cheques and tax refunds to make extra payments to take care of any balances as soon as possible and lower the amount of interest you will pay.

Click on the following links to learn more about avoiding debt during the holiday season:

• Community Financial Counselling Services
  Information, tools, and resources, including various financial calculators, to help you stay on top of your finances.
• Avoiding holiday debt (Investor Education Fund):
  8 Tips to help you keep holiday spending on track.

If you need help with your finances, Community Financial Counselling Services offers free help. They can be reached at In Winnipeg: (204) 989-1900 or toll free 1-888-573-2383.