I know that people may think it’s too early to talk about Christmas, but it’s not too early to talk about debt! Many people have already started shopping for Christmas, or at the very least have already begun making Christmas lists and brainstorming meal ideas for the big day.
Just remember, one of the major issues that force people to file personal bankruptcy or make a consumer proposal is overspending. And there is no time during the year that more people overspend than at Christmas. There is a lot of pressure at Christmas and a lack of money can be stressful if there isn’t enough to go around.
Everybody wants to buy their friends and family great gifts, but buying gifts on credit can be extremely dangerous. Here are a few simple tips that may help you stay out of debt this Christmas season.
1. Budget – Decide how much you can afford to spend without breaking the bank. Assign a maximum amount to spend on each person on your list based on your overall budget. Stick to it.
2. Credit Cards – Avoid putting any purchases on your cards – it’s a very easy way to overspend. Pay with cash to track how much of your budget you are spending.
3. Comparison shop – Check for sales and look around for the best prices. You can save a lot of money by finding great deals.
4. Avoid impulse buying – Make a list of what you want to purchase and for whom and keep it with you. Shopping without a plan can get frustrating and cause you to buy something out of your price range just to “get it over with”.
5. Be creative – If you are inclined at all, make things – baked goods, a painting, etc. If you have a large family, consider drawing names to lessen the cost and number of gifts you have to purchase.
This year try to control your spending and work on a budget. Hopefully by carefully managing your money you won’t cause yourself unnecessary personal debt problems and you will be able to avoid taking more drastic steps.
