A recent press release by Consolidated Credit Counseling Services of Canada suggests now is the time when last-minute holiday shoppers buy impulsively, putting them at risk for more debt.
Citing a few different surveys, the release noted the following statistics: the busiest shopping day of 2013 was Dec. 23, with transactions peaking between 1:45 p.m. and 4:45 p.m.; 57 per cent of those surveyed admitted to making impulse purchases during the holiday season; and 14 per cent of people surveyed anticipated taking on holiday debt last year, but 28 per cent actually did, with an average of $963 in debt.
Executive director Jeffrey Schwartz stated in the release that this is the time when consumers start to splurge on last-minute gifts. The pressure to find the perfect gift at the last minute has people burying themselves in debt, he adds.
The clock may be ticking on the holiday shopping season, but Schwartz says it's never too late to make a plan.
Setting a budget and planning spending before hitting the mall can help avoid piling on even more unnecessary financial stress, he noted.
Here's a list of tips to keep in mind this week: Budget: Take a look at how much you can realistically spend on last-minute gifts, and what gifts you still have to purchase. Assign a dollar amount to each gift and stick to the plan.
Shop with cash: To avoid overspending, shop with cash only. When your last bill or coin leaves your wallet, stop shopping. No gift is worth ruining your financial health.
Use credit wisely: If you must use credit, only use those cards or accounts with the lowest interest rates. Keep a close eye on your online statement and keep track of what you spend.
Make a plan to pay it off: If you are using credit, make sure you have the means to pay it off. If you only make the minimum payments on your debts, you could easily be financing the holidays over the next decade with interest costs eclipsing the original amount. Shop savvy: The clock is ticking but you don't have to shop impulsively. There are last-minute deals out there. Research ahead of time and target your shopping.
Get creative: Great gifts don't have to cost a lot of money. Make homemade crafts, assemble photo albums, or give of your time. Memories and experiences will last longer than any gift you can buy in a store.
