How to prepare for Holiday Debt?

_{By Bromwich+Smith Staff | 834 words | Reading Time: 4 minutes and 10 seconds | Date: 2022/11/01}

As the temperatures dip and “spooky season” comes to a close, it is time to gear up for the holiday season. While that term can mean many things to many people, one thing that is consistent is that most households will be spending more over the upcoming months. It may be increased food costs, household bills as the temperatures drop or gift buying. Now is the time to look and see where you can save this season and avoid extra debt in January.

By taking a look at your expenses before you start spending you can ensure that you limit increased debt. Start with your income know the amount of money you are starting with. Include any extra money that you know you will be receiving but don’t plan on money that may not hit your bank account. Just because you received a bonus last year doesn’t mean you are guaranteed it this year, same for overtime or extra hours. When looking at your expenses, start with the non-negotiable bills like your mortgage or rent and taxes and then look into variable bills. Look at your utility bills and budget for an increase each month, rates will likely go up and by having extra money allocated now will save you debt later on. Grocery bills are one great example of a variable bill, you do have some flexibility on where you shop and items that you pick up however you still need to get enough food to feed your family. With food prices increasing it can be hard to properly budget, so balancing your chequebooks after your grocery shop each week helps give a clear picture of what money you have left over each week.

If you are purchasing holiday gifts, its helpful to start a list of everyone you are shopping for. Every individual list will look differently, depending on the size of your family, friend group or any extras that you shop for- teachers, charitable donations, co workers. Once you know who you are shopping for, you can then plan what items you are looking to purchase. Children will typically jump into this project with lists full of wants, its your job to manage those asks and balance it with what you have to spend. There are great Apps you can download to look through flyers or get alerts when items have dropped in price. Starting your shopping early allows you more time to seek out those deals and save your bank account!

Cutting back on nonessential items now will give you a little more wiggle room when it comes to holiday shopping. That could be as simple canceling a streaming device you have been paying for but don’t use. While $10-$20 a month may not seem like a big deal now it will accumulate over the year. Are you someone who goes to the coffee drive thru on your way to work, maybe consider making your java at home to cut back, that $5 a day habit adds up quickly. Take a look at your cable and cell phone packages, you may be able to cut back on areas you don’t use and add to your savings. Maybe there is a way to bring in extra income. It could be as simple as bringing in the bags of recycling piling up in your garage to the recycling depot. Are you a pro gift wrapper? Place an ad on your neighbourhood Facebook pages, and promote your services. If physical work is more up your alley promote your snow removal services instead. Getting create, while using skills you already have is always a great start.

Know that there are always options if you are finding that despite all your efforts at the end of the day there isn’t enough money to get ahead. We know that debt can happen to anyone, and this time of year there is increased stress to have disposable money. By knowing your options, you have time to have a plan in place and still be able to enjoy the holidays this year. One option you may consider is filing a consumer proposal. By choosing to file a Consumer Proposal before the holidays you will be able to relax, and not stress out about the creditor calls or how you will be able to pay your bills. A Consumer proposal if often a strong option for many Canadians, and if you find yourself struggling with debt a phone call to one of our knowledgeable debt relief specialists could be the gift you need to give yourself this holiday season.

No matter what your financial story is, Bromwich+Smith has a number of debt relief strategies to help you regain control of your finances and get your life back on track. Reach out today for a free, confidential, no obligation consultation. Bromwich+Smith’s Debt Relief Specialists are available by phone at 1.855.884.9243, or request a call back at contact us page. We want to see you flourish!

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