How to avoid adding to your debt this holiday season
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Are you hoping to make it through the holiday season without adding to your debt load? The holiday season can be a magical time of year, but often, that magic comes with a hefty price tag. If you are already worried about your debt load, like many Canadians, you might cringe at the thought of more spending expectations. Here is the good news: You can make it through the holidays without increasing your debt. It may just take some extra planning.
1. Create a holiday budget. Without knowing what you have to spend on holiday gifts, gift wrap, groceries, etc., you will definitely be prone to overspending. Use this holiday budget tool to see exactly what you can (and can’t) afford this season.
2. Make a list, check it twice. Write down exactly who you are buying for, and how much you have allotted for that person. Shop for sales, but avoid being drawn in by “last chance” sales from retail stores.
3. Use a prepaid credit card. With the increase in online shopping and curbside pickup this year, Canadians will be counting on their credit cards more than ever this holiday season. If you will need a credit card for holiday spending, consider a prepaid credit card. Sticking to your holiday budget will be easier if you take away the temptation to overspend. Load a prepaid credit card with the exact amount of money you want to spend this year and use only the card to pay for all of your purchases. You will not have to worry about going over budget and you will avoid the stress of looming credit card debt in the New Year.
