With the holiday season comes increased holiday spending on gifts, treats, and all sorts of other holiday goodies. Consequently, for many, this time of the year is also accompanied by financial stress due to post-holiday debt obligations, plus the landscape of 2020 has impacted many Canadians. With proper financial planning, you can help prevent overspending and head into the holidays with some socially distanced, festive cheer!

Properly Planning For Your Holiday Spending

Your strategy and approach to this year’s holiday celebrations and gift-buying is the ideal way to minimize debt and lighten the burden on your bank account. For those unsure of the amount that they should budget for this year’s holiday expenses, make this the year that you begin gathering up your receipts to prepare for all the years to come.

With everyone’s drastically different holiday spending habits, here are some general seasonal expenditures that you may want to track:

  • Alcohol and food costs.
  • Holiday decorations
  • Gifts and present wrapping supplies
  • New Year’s Eve celebration expenses

Once you’re familiar with how your holiday expenses are typically incurred, you can begin an automotive bank transfer from your primary chequing account to a dedicated holiday savings account. This will allow you to set aside a predetermined amount for anticipated seasonal spendings.

Such preparation and planning will provide you with a financial framework and limit your chances of overspending during the holiday season. You’ll also be less reliant on turning to credit cards or cash advance loans to help you cover costs, and subsequently, carry less debt into the New Year!

Guide To Limiting Post Holiday Debt

One of the best tips for debt management is to always plan ahead. Financial preparation should always be a foundation for any sort of financial endeavours, but there are other steps that can help limit the financial stress of this year’s spending season.

Here are 5 proven tips that will help you track all your costs for upcoming years and minimize your post-holiday debt:

  • Make sure you’ve created a holiday shopping list! Whether you’ve already created an annual budget or not, sticking to a predetermined gift list is an easy way to limit any overspending. Try assigning a dollar amount and individual budget for each person that you’re purchasing presents for!
  • Avoid last minute holiday shopping. Doing so often leads to you rushing through your list and ends up with you spending more than you had anticipated. Give yourself time to compare prices to make the best spending decisions.
  • This year, online shopping has skyrocketed and with that can sometimes come with savings, too. Typically, there may be fewer spontaneous buying triggers and you’ll be more likely to stick to your shopping list without wandering. Online shopping also makes comparing prices much easier as you can view all available prices at the comfort of your computer screen!
  • A great alternative to online shopping is to purchase your gifts from shopping local and supporting charitable resale stores! Thrift store gifts have recently increased in popularity and provide the added benefit of giving back to a greater cause this holiday season.
  • There’s nothing better than a homemade gift that comes from the heart to show your love and appreciation for someone! Consider turning your creative interests or hobbies into personalized gifts, or alternatively, get creative and try homemade coupons that promise a special activity for those dearest to you.

Heading into the holiday spending season with a plan is one of your best bets when trying to avoid overspending. However, if you’ve already amassed high-interest consumer debt loans or credit card debts, there’s no need to worry! The Leap Financial team is here to provide you with additional funds that you may need for debt consolidation, should an unforeseen financial situation arise

Fill out our cost-free zero-obligation form today and find out how much you qualify for!