REGINA – With Christmas Day nearly a week away, debt can get a little overwhelming on the nerves. Financial and Consumer Affairs Authority of Saskatchewan (FCAA) has once again partnered up with a non-profit organization to help people in Saskatchewan tackle their debt and enjoy the holidays.
Consumers may have already purchased gifts or are very close to starting, but think about all of the trimmings, beverages and sweaters that add up quickly. The average total debt owed on things like new cars, vacations, shopping or just paying the bills now stands at $20,891 per person in Canada, according to Equifax Canada.
READ MORE: Canadians pile on more debt, as U.S. households pay it down
“Debt can easily get ahead of you and a lot of people don’t know where to turn for help. We have created an info graphic that shows people how to tackle their debt in five easy steps,” said Dave Wild, FCAA chair and CEO.
Follow these five steps from the FCAA and Credit Counselling Society to stay on top of holiday spending.
President and CEO of Credit Counselling Society Scott Hannah says it’s not too late take the fear of debt away and enjoy this holiday season.
“While a consumer may not have set aside funds to manage all the expenses, there’s still time to set a budget and understand what you’re overall costs are going to be and then put some limitations in terms of how much debt you’re prepared to incur,” said Hannah.
People are advised to look at all holiday expenditures and scale back to protect their debt.
“We encourage consumers to set a limit if they plan to use credit this holiday season as no more than what you can comfortably repay within the first three months of 2015, as a guideline,” said Hannah.
Keeping track of holiday expenses will help ease the pain of seeing billing statements for the first time next month and allow consumers to stay on track with their financial responsibilities. According to Hannah, people remember the good times with family and friends not the amounts spent on presents.
“It’s the marketing that we see on TV, online, other forms that really make people feel guilty if they don’t spend enough, there’s an equation that the more you spend the happier you’re people will be, it’s not true,” said Hannah.
“What we advise clients is put yourself in that person’s shoes and if you knew the person gave you a gift that was purchased on credit because they just didn’t have the funds on hand, would you want that gift? I’ve never heard anyone say ‘yes’ other than kids.”
When shopping online, Hannah advises people to use credit cards to prevent fraud because there’s more protection for consumers. Also, check billing statements regularly for suspicious charges.
With the deadline approaching for shoppers, it’s important to not let panic set in at the malls, which could lead to some costly last-ditch efforts. FCAA has also packaged together useful gift card tips and other ways to manage debt.
WATCH HERE: Managing your holiday spending
For those struggling, don’t wait to get help from a Credit Counselling Society counsellor and start working toward a solution.
Once the festivities are over, total the bills and use as a reference to start saving in January and avoid this situation for Christmas 2015.
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