December can be a good month for retailers. But by January and February, we’re the ones paying for it. That’s because some of us borrow to fund our holiday spending, and some of us spend all of our cash. When we do, we end up with what’s called a holiday debt ‘hangover.’ Are you dreading those credit card bills that will start arriving in the New Year? The good news is that you can take steps to get rid - and stay clear - of debt. To learn more, see:
- What can I do about my holiday debt? 10 steps to get out of debt
- How do I avoid a holiday debt hangover?
- Find out how long it may take to pay off your credit cards and other holiday debt with this debt calculator.
- Video: Managing debt with Laurie Campbell, Executive Director at Credit Counselling Service of Toronto and Rob Carrick from the Globe and Mail.
Remember, it is easy to run up credit card balances in a short period of time, but it will take time and self discipline to pay them off. The key is to set realistic goals and then stick with your plan, no matter how long it takes to get clear of debt.
Did you know? More than 600,000 Canadian households have a dangerously high level of debt. In the past 20 years, the average household income has increased by 12%, while household debt is up 71%.
Content in this section is provided in partnership with the Investor Education Fund, a non-profit organization promoting financial literacy to Canadians. To find out more go to GetSmarterAboutMoney.ca.