It’s the season of giving but with that comes a lot of spending. Holiday Christmas shopping is upon us and many Okanagan residents spend a lot more on gifts than they can afford.
This year, Canadians are expected to spend on average just under $900 on Christmas gifts. While that’s a little less than last year, over-spending during the holiday season has become a big problem thanks in part to credit cards.
“Pretty well everyone I see on daily basis has credit card debt,” says Yvonne Sutton. Sutton works at one of Canada’s leading chartered accounting and advisory firms. The Kelowna woman specializes in helping people in debt take control of their finances. “We are now at the stage where people use a credit card as a source of income rather than the convenience as it was meant for and it is growing from there.”
According to Sutton, 91 per cent of Canadians carry some type of credit card debt. She says for many people that debt gets bigger over the gift giving season.
“When statements start to come in, they recognize oh my gosh I didn’t know I spent that much, “ says Sutton.
She says, however, there is a way to curb that impulse spending and avoid getting into a post holiday debt.
“Some planning and have a budget in mind as to what you can afford to spend, “ says Sutton.
If you’re tight on cash, home-made gifts including baked goods, quilts, and crafts are also more meaningful and more affordable. If you’re buying for a multi-member family, Sutton recommends one gift for all, for instance a gift card to the movies or a restaurant.
“You’re giving that family member an extra gift because it is bringing that family together to do something,” says Sutton.
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