SASKATOON – As the festive season draws to an end the spending hangover is beginning to set in as many Canadians will be starting the new year in mega debt after maxing out credit cards over Christmas.
“Credit is very easy and you get caught up in the season and you tend to overspend,” said MNP Financial Advisor Naida Kornuta.
“I’ve got two grandchildren and a daughter so yeah I do overspend all the time,” said one grandmother to Global News.
“We did spend more than last year but I think it was worth it but we’re still paying for some now,” said another woman.
Canadians were expected to spend an average of $1,800 during the holidays, up 12 per cent from the year before.
“Once the January bills come it tends to create a lot of stress for people,” said Kornuta.
A recent Bank of Montreal survey shows 57 per cent of Canadians admit to making impulsive purchases over the holiday season.
They are purchases that most usually regret and can throw off future financial goals.
For anyone who finds themselves in serious financial trouble here’s the advice.
“Really think about getting some professional advice, talk to your bank, there may be an opportunity for consolidation at a lower interest rate,” said Kornuta.
“There’s consumer proposals which is what we do and we offer a settlement to their creditors,” she added.
But while many spend more than they can afford others do manage to stick to a budget and according to Kornuta that’s the key.
“There’s all sorts of different methods of budgeting and finding a method that’s works for you,” she said.
“It’s got to be simple, it’s got to make sense to you because if it’s too much work, you won’t do it,” added Kornuta.