The aroma of freshly baked fruitcake from the oven. Streets adorned with lights, as neighbours seem to compete with each other for the best-decorated house.
Carols on endless repeat at the local mall.
These are all characteristic of the holiday season, when loved ones and friends gather to share special moments and gifts.
Little do we know that when the last decorations are taken down, a holiday hangover takes over. And unlike a hangover of a different strain, this one won’t go away after a good night’s sleep.
With recent reports that personal debt is surpassing disposable income in many Canadian households, and as interest rates soar even higher, you may want to think twice about overspending this holiday.
Don’t fret. Like any preventive method, there are ways to make sure it doesn’t even happen at all.
The best preventive method is always abstinence – leave the credit card at home. Instead, use cash or your debit card for purchases.
This means you’ll only spend money you actually have.
If you have to use the plastic, use only one card. Too often, many people use two, three or more cards, thinking they have, in a sense, free money. Instead, in a few weeks, they begin juggling large bills in frustration.
Before you begin your journey to the mall, sit down and draft a budget plan. Decide how much you want to spend in total and how much per person. No matter what, stay within the set limits.
If for any reason, you decide to spend more on a gift for someone, lower the limit for someone else.
In the end, you’ll never be shocked at how much money you’ve spent.
It is important to keep track of all the purchases. Keep the receipts and write down the item in a notebook after they are bought. That way, you’ll be able to check how much you’ve spent at a quick glance.
The stress of holiday shopping is something that most of us face. The large shopping crowds and the glaring ads only contribute to the feeling that Christmas shopping should be done with as quickly as possible. But there are ways to combat this stress. Try shopping earlier. You’ll find bargain items unrelated to Christmas sales that could make excellent Christmas gifts.
Also, if you have a specific item in mind, don’t buy it at the first store. Shop around at other stores, until you find the lowest price.
Many will tend to overspend because they expect a large paycheque, holiday bonus or other incoming funds.
Avoid the temptation to do this: Think of what you really need that money for. Perhaps paying off the last credit-card bill?
These are only some suggestions to combat debt; sometimes they are just plain common sense.
Don’t fall into the same trap that many people do every year. Taking the proper precautions to prevent overspending can help the holiday season become what it was truly meant to be.
A time of giving without regret.