By Jasmin Brown

BDO Debt Solutions

Boxing Day Deals and Debt

Dec 20, 2023 | 11:41 AM

“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.”

We know that again this year, retailers will be working to lure in consumers by advertising big Boxing Day sales. We will read it in our emails, see it on our social media, and hear it on the radio.

However, especially for those Canadians that are carrying a debt load, these sales are something that you may wish to avoid. Retailers use sales like Black Friday and Boxing Day to entice consumers to make purchases, even when the deals aren’t so great.

The reality is, a significant number of Canadians just cannot afford to add to their debt load, even in the name of a great deal.

The 2023 BDO Affordability Index shows us that people are finding it very difficult to get out of debt in 2023 as they continue to struggle with the costs of even the basic necessities.

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Affordability continues to be referred to as a crisis in Canada. In the current economic climate, it is best to avoid any unnecessary spending, which can mean avoiding the urge to shop the so-called Boxing Day sales, and here are some reasons why:

· Many of the “deals” aren’t really deals at all

· You can’t really afford the purchases in your budget

· You would be buying things you don’t really need

· The sales are good for the big corporations, but not for the everyday consumer

· Buying something on sale that you don’t need or otherwise wouldn’t purchase, really isn’t a deal or a savings at all

We would encourage you to think carefully about these “once-in-a-lifetime” deals and the impact that they may have on your financial or debt repayment goals.

If you are planning to make improving your finances part of your goals for 2024, it would be advisable to think hard about over-spending on Boxing Day deals, particularly where debt management is a priority. To help meet your goals, it may mean changing the way you think about debt. It helps to envision what your life would be like without personal debt, and in the meantime changing some of your spending habits.

The draw of a good sale can be tempting. Even if you can’t afford the item, it can be easy to rationalize. Some common excuses might be things like, “This TV won’t be this cheap again” or “I’ve been wanting a new jacket for months.” The reality is that the chances are very good that those sale prices will come around again. Remember to ask yourself, “is it really a good deal if I don’t actually NEED the item?”

We also see a lot of easy financing offers. But before agreeing to finance a purchase with interest, we recommend that you add up the total cost with the added interest charges. We would also encourage you to beware of those pay-no-interest-until-2025 offers. If you fail to make your payments or violate the agreement, you’ll end up paying interest from your date of purchase! There is also a good chance that if you don’t have the money now, you won’t have the money when it comes time to pay the bill.

You have probably noticed that many companies are now offering “buy now, pay later” plans, and even on smaller items. These may seem appealing at first, however, you should consider the risks before proceeding:

· With fees, you could end up paying more than retail price for the item

· If you are not disciplined enough to make the payments, it may be a very expensive method of financing

· You may end up buying things that you don’t need, or spending impulsively

· You could end up damaging your credit

Boxing Day sales can be enticing and shopping the sales may even be part of your holiday traditions. But before you take advantage, take some time to think about the purchases. Particularly whether you would buy the items if they weren’t “on sale.” Your budget should be your primary consideration if you do intend to head out and shop the sales.

Our financial situations are an accumulation of all the decisions that we make – even the small ones.

Changing one spending habit or adjusting how you view debt can help with reaching your financial and debt repayment goals in the new year.

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.