How Boxing Day Sales Can Impact Your Debt

Retailers use sales like Black Friday and Boxing Day to lure customers in, even when the deals aren’t so great. And the reality is, a significant number of Canadians just cannot afford to add to their debt loads, even in the name of a great deal.

The 2022 BDO Affordability Index survey found that more than half of Canadians are living paycheque to paycheque, and 42% say that their debt has become overwhelming – almost double the levels seen in 2021.

There are many reasons to avoid shopping the boxing day sales:

· The deals really aren’t that good

· You probably can’t really afford it

· You very likely don’t need the items you would end up purchasing

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

Now more than ever, it is important to think critically about these “once-in-a-lifetime” sales, and what effect they have on debt repayment goals.

Have you promised yourself that you will focus on paying off your debt in 2023?

One way to motivate yourself is to change your mindset about debt. In the long-term, that may mean actually envisioning what your life will be like without personal debt. In the short-term, it might mean a change in spending habits and shopping behaviors.

The draw of a good sale can be tempting. Even if you really can’t afford the item, it’s 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.” Yet, in reality, chances are very good, those sale prices will come around again. And remember to ask yourself, “is it really a good deal if I don’t actually NEED the item?”

What about the lure of those easy financing offers? Before agreeing to finance a purchase with interest, add up the total cost with the added interest charges. You should also beware of those pay-no-interest-until-2024 offers. If you fail to make your payments or violate the agreement, you’ll end up paying interest from your date of purchase!

Many companies are now offering “buy now, pay later” plans, 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 actually need, or spending impulsively

· You could end up damaging your credit

Before you take advantage of a Boxing Day sale, take a moment to reflect. Do you have room in your budget for that purchase? Is it something that you actually need? Will it add to your debt or throw off your ability to make debt payments? Changing one spending habit or adjusting how you view debt can help with reaching your 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.

by Jasmin Brown

How Boxing Day Sales Can Impact Your Debt

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