Find The Right Balance For The Holidays

The holidays...a time for socializing, giving and having our budgeting skills put to the test! ‎Do you say "screw the budget!” spend excessively and deal with the aftermath in January? Or are you one of those people who cower away from anything social to avoid opening an already thin-looking wallet? Either way, worrying about keeping up with appearances can take away from the true spirit of the holidays.

If you find yourself spending more than you can afford year after year, you may be an overboard Santa. While it's important to enjoy the holidays and make good memories, setting yourself up for financial success in the New Year is equally important. Create a holiday spending budget and figure out what you can honestly afford to spend, and be firm about it. There's no need to buy over-the-top presents to impress family and friends. Many of us feel uncomfortable when we are given unnecessarily lavish gifts. And no one likes the person who upstages everyone else's gifts by going over the limit.

Having a gift-giving limit is especially important when it comes to buying gifts for our children. Ironically this is where most of us have trouble holding back. Spoiling your kids every Christmas can result in just that...spoiled kids! You don't need to give your child every single item on their list. Setting a spending limit in your holiday budget or making them choose which gifts they want the most will help them learn how to choose, prioritize and appreciate the things they want most in life. Your children and finances will both thank you later on.

At the same time, being financially-wise does not mean being the Christmas Grinch! You may cringe at the thought of spending your money on a frivolous, commercial holiday. However recognize that the holiday season may mean a lot to your family and friends. For the sake of your relationships, make it a priority to celebrate, even if it means sacrificing something for yourself.

You can avoid anxiety from spending money over the holidays by preparing early. Set aside money each month in your budget for your holiday budget and keep an eye out for sales in the weeks leading up to Christmas. Communicate openly with loved ones to come with holiday plans everyone is comfortable with.

‎Thoughtful, simple gifts are usually the most appreciated no matter what the cost. So‎ don't feel obligated to match others' gifts dollar for dollar. Especially with family who know what you can and can't afford. Sometimes your older sibling or parents just want to treat you, without expecting you to possibly reciprocate the gift in dollar amount. If you have a friend who constantly gives lavish gifts, just return with a reasonable and thoughtful gift you can afford. Hopefully he or she gets the idea and eventually tones it down.

Holidays don't need to be a nightmare on credit! Your true loved ones will enjoy your presence with them over your presents.

Frequently Asked Questions

Have a question? We are here to help.

What is a Debt Consolidation Program?

A Debt Consolidation Program (DCP) is an arrangement made between your creditors and a non-profit credit counselling agency. Working with a reputable, non-profit credit counselling agency means a certified Credit Counsellor will negotiate with your creditors on your behalf to drop the interest on your unsecured debts, while also rounding up all your unsecured debts into a single, lower monthly payment. In Canada’s provinces, such as Ontario, these debt payment programs lead to faster debt relief!

Can I enter a Debt Consolidation Program with bad credit?

Yes, you can sign up for a DCP even if you have bad credit. Your credit score will not impact your ability to get debt help through a DCP. Bad credit can, however, impact your ability to get a debt consolidation loan.

Do I have to give up my credit cards in a Debt Consolidation Program?

If you enter a DCP in Canada, you will have to refrain from using credit, which includes unsecured credit cards; however, you can still use a secured credit card. Once you've successfully completed the program, you may be eligible for an unsecured credit card.

Will Debt Consolidation hurt my credit score?

Most people entering a DCP already have a low credit score. While a DCP could lower your credit score at first, in the long run, if you keep up with the program and make your monthly payments on time as agreed, your credit score will eventually improve.

Can you get out of a Debt Consolidation Program?

Anyone who signs up for a DCP must sign an agreement; however, it's completely voluntary and any time a client wants to leave the Program they can. Once a client has left the Program, they will have to deal with their creditors and collectors directly, and if their Counsellor negotiated interest relief and lower monthly payments, in most cases, these would no longer be an option for the client.

Find The Right Balance For The Holidays | Credit Canada

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