The holiday season brings with it shopping lists, holiday spending, more elaborate meals, and other costly means of merrymaking\u00a0 For Canadians already struggling with credit card debt<\/a> and debt repayment<\/a>, it\u2019s an especially tricky time of year to keep finances in check. Recent survey data from Equifax Canada<\/a> found that s<\/span>ix-in-ten consumers (60 percent) planned to spend less on gifts this holiday season due to the financial pressures of inflation. Another 41 percent said they will limit their holiday spending because they are already carrying too much debt, up from 36 percent last year.\u00a0<\/span><\/p>\n Plans to cut back on holiday spending also vary across the age groups. Almost one-in-four (23 percent) of younger adults ( aged 18-34), said they are more likely to increase their spending this year. Meanwhile, just four percent of those aged 55 and over expected their holiday spending to increase. While trying to lower costs this time of year can be challenging, it’s a good way to avoid the dreaded New Year\u2019s debt hangover<\/a>.<\/p>\n So how do you navigate an expensive month with Christmas gifts to put under the tree, family dinners to plan and host, and all the other odds and ends that come with the holiday season? Whether you\u2019ve got one week, one month, or one year to plan, here\u2019s a step-by-step guide to getting through the holiday season while staying on course with your debt repayment.<\/p>\n As difficult as it is to manage costs in our challenging economy, do your best not to skip making a payment to your credit cards, debt consolidation plan, or any other debt repayment plan you\u2019ve committed to. The key to financial success and debt repayment is creating an achievable budget — one you can stick to and follow through on. While it can be tempting to take a break from your financial obligations during such an expensive month, it’s crucial to try to stay on budget, even during the holidays. If you do skip payments, you’ll have the extra stress of trying to catch up in the new year.<\/p>\n Instead, consider how much income you have for the month, and account for all of your regular expenses, including your rent, bills, and groceries. Remember to include your debt repayment plan, whether it\u2019s a debt consolidation loan you\u2019re making monthly payments on or payments to credit card companies for balances you\u2019re chipping away at \u2013 they all need to be addressed in your budget.<\/p>\n While December is an expensive month, you need to make sure you don\u2019t give up on your repayment goals<\/a>, especially if you want to stay on track for success in the new year.<\/p>\n Once the essentials are taken care of, the money that you have left over can be used for your Christmas spending. Keep in mind while you\u2019re budgeting, some categories, such as prepping lunch for the work and\/or school week, won\u2019t need as much money during this time, so you can also allocate the surplus to your Christmas spending budget.<\/p>\n 10 Tips for Paying Off Credit Card Debt\u00a0<\/a><\/p>\n This month take a cue from Santa; be sure to shop with a list<\/a> and check it twice. Think of everyone in your family you still need to shop for, the groceries you may need to buy for those special Christmas meals, and then look at how much you can afford to spend on each category. Try to be as detailed as you can with your holiday shopping plan. For example, you may need to buy six presents, but don\u2019t just assign an amount like $20 on each person \u2013 you\u2019re likely to spend more on your partner or significant other than on your siblings or a family friend. Allocate a specific amount of money for each gift.<\/p>\n Building this plan is the easier part \u2013 it\u2019s sticking to the guidelines that you\u2019ve set that can be tough, especially if you\u2019re shopping at the last minute. This is why creating a blueprint for your shopping is so helpful. If you know you\u2019re only allowed to spend $20 on your siblings and $50 on your spouse, you won\u2019t blow your budget when you\u2019re doing your Christmas shopping at the mall or online.<\/p>\n The same goes for your family dinners and hosting events \u2013 with a set budget to spend at each store, and with a precise grocery list of what you need to buy, you\u2019ll make your trips more time- and cost-efficient.<\/p>\n 13 Surprising Ways to Save at the Grocery Store<\/a><\/p>\n After doing some number crunching with the December budget, and seeing what\u2019s left for holiday spending, it may seem like you’ll need a Christmas miracle to manage without overspending. Stretch your budget further by getting creative and strategic with the resources you have \u2013 specifically gift cards and credit card reward points.<\/p>\n Have a search through your home, if you’re like many of us, you’ll have some unused gift cards hiding out in drawers, dressers, coat pockets, or random envelopes. sear. Combing through your inbox on the other hand, could also unearth some Amazon vouchers and perhaps some useful coupons or discount codes. These unexpected extras are a tremendous help to your budget, offsetting your expenses and freeing up more of your Christmas cash. If you have a $50 gift card, that could easily buy a few gifts for your family or friends.<\/p>\n Most of us also stockpile credit card points and store loyalty points throughout the year, waiting for the right time to redeem them. Credit card points can often be converted into discounts on airfare, gas, or groceries, and even traded in for electronics, jewellery, or gift cards \u2013 all of which could make great gifts\u00a0 for your loved ones at Christmas time. Your store loyalty points can be traded in for steep discounts or into monetary value at the cash register, too. Some types of points can even be gifted to others, essentially giving them funds towards airfare or merchandise they\u2019ve got their eyes on.<\/p>\n Using these points for holiday shopping is a great way to keep your spending within your budget.<\/p>\n How Do I Know If a DIY Debt Repayment Program Will Work?\u00a0<\/a><\/p>\n The most practical way to keep your debt from growing during the holiday season is to keep your credit cards tucked away so you aren\u2019t even able to swipe or tap with money you don\u2019t have. Cash-only diets<\/a> are a great strategy to ensure you stick within the confines of your budget for each financial category.<\/p>\n If you\u2019re only allowed to spend $300 on Christmas gifts, put that amount in an envelope, indicate how much is allocated for each gift, and accept that once the money runs out for each person you\u2019re shopping for, there\u2019s no turning back.<\/p>\n While shopping with a credit card allows you to collect points, cashback, or other rewards, a cash-only approach is an especially important step if you’re unable to shop with plastic and pay off the balance in full afterwards.<\/p>\n How to Save Time and Money on Christmas Gifts\u00a0<\/a><\/p>\n According to the Equifax poll, 57 percent of consumers plan to prepare a budget for their holiday shopping. <\/span>With everyone\u2019s purse strings tightening, have an honest conversation with your loved ones and your family to set limits on spending. Through discussions, your family may choose to have a potluck dinner or share the expenses for a holiday feast so that one family member isn\u2019t solely responsible for the bill for the whole occasion. Beyond reigning in the excess that can come with gift-giving, having an open conversation about everyone\u2019s budgets and expectations is a great way to ensure you aren\u2019t spending beyond your means.<\/p>\n Holiday Budgeting Tips<\/a><\/p>\n With the Christmas season comes an onslaught of \u201cbuy now, pay later\u201d promotions, pay in installment plans, store credit cards with initial signup bonuses, and other gimmicks that promise you a deal to lure you in and spend more.<\/p>\n If you\u2019re already grappling with debt, your best bet is to steer clear of these offers, as enticing as they seem. If you\u2019re considering a \u201cbuy now, pay later\u201d deal, think about whether you\u2019ll have the money later or if you\u2019ll only further exacerbate your situation. Store cards come with steep interest rates and you\u2019ll want to avoid the extra credit at your fingertips too.<\/p>\n Ideally, at the start of the year, you\u2019ll create an annual budget carving out savings for a handful of categories: travel, new clothes, or upcoming weddings and birthdays. Christmas gifts and holiday spending deserve a slot on your annual budget<\/a>, too.<\/p>\n Saving for events like Christmas for the year ahead is often overlooked and this is why consumers end up in hot water after their December splurging.<\/p>\n With your newfound foresight, in 2020, work a small sum into your monthly budget to save towards Christmas. Putting away $20 to $50 a month could leave you with $240 to $600 by the end of the year to pay for holiday expenses.<\/p>\nDon\u2019t Abandon Your Debt Repayment Plan<\/h2>\n
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<\/p>\nPlan Your Christmas Shopping List<\/h2>\n
Use Your Gift Cards and Rewards Points Strategically<\/h2>\n
Go On a Cash-Only Diet<\/h2>\n
Get Your Family Involved<\/h2>\n
Avoid Signing Up to More Debt<\/h2>\n
Save Year-Round<\/h2>\n