Top tips to rein in the spending spree

Most  Canadians splurge during the festive season with boisterous feasts and oodles of presents. But to have a good time, is so much expense truly necessary? This Christmas, why not clear debt rather than create it!

Christmas holidays can present quite a challenge for those managing a mortgage, as well as those looking to enter the property market in the new year.

Senior corporate affairs manager of a leading mortgage company, Kristy Sheppard states, “Ahead of further rate rises, it’s important to ensure excess Christmas spending does not impact your ability to meet loan repayments. Meanwhile, those looking to buy shouldn’t dig too far into their savings, remembering most lenders now require at least three months of genuine savings. 

“If you stick to your budget for food, beverages, presents and travel costs over the festive season you will ultimately reduce the potential for more personal debt and save money during what is often the most expensive time of year.

“Not only that, if you have a mortgage you can contribute leftover savings from the Christmas budget into your home loan, which will save time and money off your loan and can help you cope with further interest rate rises.”

“Of course, avoiding debt and maintaining a good credit history is important at all times for all borrowers - both potential and existing. When applying for a loan, lenders will take into account your credit history and assess your ability to budget and manage repayments.”


Avoid silly season spending with these tips:

  • Create a financial buffer throughout the year in preparation for the summer holidays. By repaying your mortgage above the required amount you will have more funds at your disposal, if need be.
  • Revisit your purchases from last year and make a list of things that were not consumed, were left over or unused. Then, create a well thought out, detailed shopping list before you arrive at shopping centre, to save you time and money spent on unnecessary items.
  • Set a budget for each relative’s and friend’s gift; this might encourage you to shop for a better gift rather than the first, possibly more expensive, thing you see.
  • Plan for the year ahead and budget for your next summer holiday spending. Organise your repayment strategy and increase your contributions when you can, start preparing your new year budget and, based on this year’s festivities, decide what you can cut back on for next year.
  • Simply stop and think… sometimes a minute of consideration is enough to prevent impulse buys!

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The Don Miller Group Team

The Don Miller Group Team

CENTURY 21 Executives Realty Ltd.
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