How to Deal with the Aftermath of Holiday DebtDec 07, 2017
I went into debt this holiday season – now what?
There may be a lot of Canadians asking themselves the same question this year. A pre-holiday poll revealed that about half of Canadian shoppers expected to go over budget and accumulate some debt over the holidays.
For those who got caught up in the spirit of the season and spent more than intended, here are three tips to help you deal with holiday debt and find debt relief.
Learn from your mistakes
Although increasing your debt is stressful, it also provides a good lesson and an opportunity to learn from your mistakes. Consider your spending habits over the holiday season.
Was there anything that inspired you to overspend that you could possibly avoid in the future?
Did you have a holiday spending budget in place?
Were you honest with yourself and your loved ones about what you could comfortably afford to spend this year?
An honest review of this year’s holiday spending will help you create a plan to avoid consumer debt next holiday season.
Personal finance expert Preet Banerjee offers some advice in this CBC article on how to prepare for the 2018 holiday season, one week at a time.
Make a plan to deal with your holiday debt
It will be difficult to deal with your debt unless you have a strategy. If you’re unsure which debt solution will help you effectively reduce your holiday debt, do some online research. The Financial Consumer Agency of Canada offers a number of debt relief resources on Canada.ca.
Try to stay motivated
This is the difficult part – just like a New Year’s resolution, creating a goal is a lot simpler than sticking to it. Especially a long-term goal. Remember, getting rid of your holiday debt will not only reduce your stress levels, it will also provide you with the ability to focus on your other financial goals and priorities.
Finally, it’s important to remember that you’re not alone in wanting to reduce your debt. Paying down debt is almost consistently the number one New Year’s resolution among Canadians.
Check out how personal finance blogger Krystal Yee stays motivated in order to make her financial goals a reality.