Christmas is a time when Canadians exchange gifts and this year they are planning to spend eight per cent less than they did last year. A survey by the major Canadian bank, CIBC, found people plan to spend an average $597, but more than half expect to go over budget.
Atlantic Canadians spend most
In spite of hard times caused by the lower revenues from oil, people in the western province of Alberta are planning to spend six per cent more this year. Residents of Ontario and Quebec plan to cut their budgets by 12 per cent and 10 per cent respectively.
Those in the poorer Atlantic Provinces want to trim spending this year by seven per cent, but they still plan to spend $803. That’s more than anyone in the country.
Beware the credit card, warns bank
Only 13 per cent will not use a credit card. Fifty-seven per cent will pay with a card and pay their balances in full, while 29 per cent will use a card and carry the debt forward incurring cumulative interest charges.
The bank offers advice to ‘avoid financial pain after the holidays.’ It suggests people talk to family and friends about spending limits or finding alternatives to expensive gifts. It offers a tracking tools to ‘avoid creeping expenses.’ It offers prepaid cards and encourages people to stick to limits.
Entertain at home to avoid big restaurant bills, the bank suggests. Use the credit cards carefully and avoid late fees. And if you do get into trouble, CIBC says you can talk to an advisor to help get back on the right financial track
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