Christmas Spending, How To Avoid Christmas Debt
There are rare incidents in our existence wherein countless of our financial obligation is cast out the pane. Special occasions like Christmas are in like in manner. This is because regardless of how you’ve been thrift for the rest of the months, Christmas season is mostly an excuse for outrageous spending. This can result to facing your holiday debt at the start of the following year, instead of starting fresh with your finances.
Misconceptions About Christmas Spending
There are common assumptions that are usually misconstrued by most which are likely to result in Christmas Debt
- It the best time of the year to give back to your friends and family
- Your kids will be crushed if they don’t get abundant presents
- Celebrating the season is more significant than getting into debt
- You only celebrate Christmas once a year, so you have to make the most out of it.
These assumptions may partly be true, but it doesn’t mean that you will sacrifice a huge part of your finances just to put your assumptions into place. So, in this guide, we have to assume that your main goal is to pay off your debt. Besides, one of the lessons that people get on repaying their debt is that a steady focus might get you to the finish line and that it requires more drive to exert effort and energy towards achieving your utmost goal.
Ways to Avoid Christmas Debt
There are certain guides that will help you in avoiding outrageous spending during Christmas. These pointers are as follows:
if your focus is towards eliminating your debt and avoiding additional debt on Christmas, the tempting deals and promotions might persuade you to lose your focus. Setting your head straight that every dollar you put on your debt payments is your main priorities may help you shun from temptation.
For instance, preventing to get a cup of coffee from a shop and making your own coffee at home can be a good scenario of keeping your focus straight. A flashback of these instances might help you step back in spending tons of money over a Christmas present
Alternatives to Expensive Gifts
Letting your family knows about your challenges and framing to start a good conversation is important to bring them on board towards your goal. In terms of exchanging presents, you can find activities or games that may override such activities and even promote a closer bond. Though at some point they may be upset in not getting the present that they expect, making them understand the situation and explaining how it can help their future can make it just fine.
Moreover, there are certain things that might be more meaningful and less expensive than you can give as an alternative. The key is healthy and good communication between family members and your attitude of being resourceful in looking for an alternatives.
All you need to do to avoid overspending this Christmas is get creative. Instead of spending on luxurious presents or going on expensive dinners, you can do meaningful activities that can get you even closer together.
Lastly, if you know your priorities, it would be easier for you to think outside the box and come up with certain alternatives that won’t necessarily cost you a significant amount.
CONSUMER PROPOSAL EXAMPLE
Example Unsecured Debts
|2||Credit card 1||$6,812|
Your Monthly Repayments Would Be
a Consumer proposal $748
(total contractual repayments)
a Consumer proposal $295
(total contractual repayments)
* Subject to creditor acceptance
* Payment subject to individual circumstances
* Credit rating may be affected
* Fees apply, subject to individual's circumstances.