Expert tips to avoid holiday debt and get ahead of money stress | Daily Hive

Holiday money stress/Shutterstock

Looking at your credit card bill during the holiday season can be frightening, but an expert explains why avoiding your statement could lead to bigger problems for you.

As magical as this season is, it can be disastrous financially.

Canadians have already been in the red due to rising grocery prices, global inflation, and higher interest rates.

Unfortunately for British Columbians, there aren’t a lot of rebates on the way for the end of 2023.

Apart from the increased BC Family Benefit and Canada Child Benefit eligible British Columbians will receive in December; the rebate money pot has dried up.

Since there isn’t a lot of money headed British Columbians’ way over the holidays, it can be especially concerning for people who are relying on credit to pay for their day-to-day living expenses, Julie Kuzmic from Equifax Canada told Daily Hive.

“Anyone who is needing to use their credit card just to buy groceries, and is not able to pay off that credit card balance on a regular basis, they are people who I’m sure are feeling very uncomfortable and objectively, that is a concerning situation to be in,” she said.

Kuzmic goes on to explain that recent data shows an increase in credit card balances across the board.

According to a survey from Equifax Canada, young people aged 18-34 are more likely to carry over holiday debt and regret their purchases compared to people 55 and older.

“Credit cards remain the preferred payment method for holiday purchases for most people (67 per cent); the number climbs even higher to 72 per cent for younger adults (aged 18-34),” a release from the company reads.

Recent data has also found that the younger cohort, which has been expressing their anxiety, has even considered finding a second or third job in order to pay the bills, Kuzmic said.

While she applauds people who are being proactive about their financial situation, Kuzmic said, “I would hate to see the next round of surveys … telling us about impossible stress levels from people working more hours than are unreasonable in order to be able to manage their living expenses.”

It can be a very difficult first step to even look at your credit card statement but there are three big reasons why you should, Kuzmic emphasizes.

The first reason is, whether you look at it or not, the credit statement still exists. However, the only time you can do something about it is if you actually look at it, she said.

Additionally, if you look at your statement there is a better chance you can spot mistaken charges or if someone is impersonating you.

Earlier this month, an Equifax report revealed that, on average, the credit card balance held by Canadians at the end of September reached a staggering $2,121, which marks the sixth consecutive quarter with increased credit card use.

With files from Clare Fenton

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