Having a holiday financial plan can help to minimize further debt, expert says

Christmas is oftenreferred to as the season of giving but for Islanders withdebt itcan maketheir financial situation worse.

"This time of year is stressful for absolutely everybodybut especially for folks who haveoverwhelmingdebt," said Walter MacKinnon, vice-president at MNP, a debt solutions firm, during an interview withLouise Martin.

"They're trying to now spend something on other folks and they don't have it to spend."

Making a holiday financial plan

A recent report by the Office of the Superintendent of Bankruptcy shows that consumer bankruptcy filings were up in October compared tonumbers in 2017.

The biggest increase reported was on P.E.I., with a 21 per cent jump in consumer bankruptcy.

To avoid more debt during the holidays, Islanders need to come up with a financial plan, MacKinnonsaid.

After forming a financial plan and budgeting gifts, MacKinnon said, it's important to begin shopping early as last-minute shopping can lead to overspending.

When shelves have been depleted and gift options are low people tend to spend more than they intended to, he said.

Using a credit card can also lead to blowing a budget as it gives the illusion of not spending until the bill arrives in January.

"Planning early and sticking to it is the key here," he said.

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