By Jasmin Brown

BDO Debt Solutions

Avoiding Holiday Debt Regret

Dec 8, 2023 | 2:01 PM

“The views and opinions expressed in this article are those of the author and do not necessarily reflect the position of Pattison Media and this site.”

Many Canadians regret their holiday spending when the bills come in January. A past survey conducted by Equifax Canada shows that 20% of Canadians experienced debt regret over what they had spent during the holiday season. Recent surveys are showing us again this year that many Canadians are prepared to spend money to make their holidays merry and bright, and many of those are prepared to take on additional debt in order to do it. Below are some tips to avoid holiday debt regret and seeing red in January when the bills come in.

The Holiday Budget

The best way to stay on track is by creating a holiday budget. This will help you to determine what you actually have to spend after paying your regular bills. When it comes to your holiday budget, you want to include your income after expenses, holiday savings, and make sure to include all of the holiday expenses. Remember, it is not just the gifts! It is the decorations, wrapping paper, holiday outfits, travel, and meals as well. Some additional tips when it comes to your budget are:

· Use debit or prepaid card and avoid using credit if you can

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· Use your loyalty or reward points

· Plan your purchases and know what you are looking for

· Shop early and look for deals on the things you would otherwise purchase (it’s not a deal if you wouldn’t have bought it but for the sale!)

· Avoid last-minute shopping as there is a tendency to overspend or impulse shop

· Avoid spending too much time online, as it can also lead to overspending.

Festive FOMO

“FOMO” is the fear of missing out. FOMO can have a big impact on your holiday budget. We are absolutely inundated this time of year with invitations to parties, advertisements, and social media posts. Trying to do everything and to keep up with the neighbours can add up very quickly. There is nothing wrong with getting together, after all, that is what the season is all about. Here are some tips to help keep you on track when it comes to attending holiday gatherings and avoiding festive FOMO:

· If you are planning a get together, make it a potluck

· Share a cab or take turns being the designated driver

· Revisit your closet to find your holiday outfit

· Choose the things you really want to do – you may not be able to do them all

· When it comes to social media, remember you are seeing photos, not the credit card bills

· Take a break from social media and disconnect.

The holidays can be a very stressful time of year for many. One survey shows that just over half of Canadians say that just thinking about the holidays and the associated costs is causing them financial anxiety. The holidays are meant to be a time to relax, unwind, and enjoy time with friends and family. Planning ahead can help ease some of the financial pressure. You want to avoid having debt regret in the new year. It’s important to remember this time of year that it matters more who is around the tree than what is under it.

If you are having trouble making ends meet each month, finding the right debt solution can help. Visit the BDO Debt Solutions website for more information about bankruptcy, or call 1 855 BDO DEBT to book a free, no obligation consultation.

Jasmin Brown is a Senior Vice President overseeing the insolvency practice in Saskatchewan. She is committed to providing creative and practical debt solutions with empathy, understanding and professionalism to help people overcome their financial difficulties.