Christmas is now only a month away, and there’s already reports that credit card debt is at a two-year high in Canada. Many Canadians will pay for Christmas presents this year with credit, but unless you have a plan in place to pay it off, you’ll be stuck with a holiday debt hangover. But you don’t want to delay the payment of holiday debts, or avoid even paying the minimum payments.
“Credit card debt has risen to a two-year high. With the holiday shopping season around the corner, we are going to keep a close eye on how Q4 spending affects debt levels on credit cards.” [Financial Post]
If you are going to be using credit this holiday season, the best thing you can do for yourself is not ignore it. Just because you throw your card in a drawer and can’t see it, doesn’t mean the interest isn’t piling up. Pay your minimum balance always, and if you need help catching up, always confront the situation head-on with your credit card company. You can come up with a payment plan and make things a lot easier on yourself.
When it comes to tightening your holiday spending, making a budget and sticking to it will really go a long way. If you have any financial questions or comments, don’t hesitate to contact me. If I can’t answer it, I know the person who can!
