Christmas shopping can fuel debt
Published Friday, December 23, 2011 11:26AM CST
Last Updated Saturday, May 19, 2012 4:57AM CST
Christmas shopping can mean Christmas debt.
According to Statistics Canada, household debt is at a record high. Holiday spending only adds fuel to that debt-filled fire.
"Common mistakes are that people don't set a budget and they tend to impulsively shop and spend more money than they were originally intending," said Vicki Doell, a bankruptcy trustee for Deloitte.
"Sometimes people buy things ahead of time and forget what they've actually bought."
Another factor adding to Christmas debt are credit cards. Many cards come with 20 per cent interest rates, meaning it's more difficult to manage your debt.
"Sometimes people are using their credit cards during the rest of the year to live on and then they use their income to pay off their credit cards and it becomes a revolving door," Doell said.
A recent survey from RBC suggests that Canadians are generous when it comes to giving gifts. Saskatchewan shoppers will spend an average of $680 this holiday season.