One in five parents will go into debt this year because of back-to-school shopping. It will also take many of those parents months to pay back that debt, which can get as high as $300 to $500 each and every year. Back-to-school shopping is just one more expense that adds to ever-higher consumer debt. But you can use these tips to keep your spending in check this year.
Save Over Summer
Summer can be a dangerous time for your credit cards. Gas prices go up, you’re eager to get out of town on the long weekends, and you may even have some international travel destinations in mind. But what you should really be doing is setting aside money for essential back-to-school shopping. Try to cut down your summer expenses by walking instead of driving, easing up on the air conditioning, and aiming for more modest travel destinations.
Make a list of everything your kids are going to need for back-to-school. Talk it over with them and figure out what they need for stationary and clothes. Increasingly, big ticket items you might have reserved for birthdays like laptops and tablets are needed for school, so be prepared for bigger expenditures.
Compare Prices Online
Once you have your list, go online to compare prices. You can also use online classifieds to look for things used.
Teach Your Kids About Budgeting
Back-to-school shopping is the perfect opportunity to teach your kids about budgeting and why money matters.
Don’t Rely on Credit Cards
When you already have so much debt on your credit cards, it can be tempting to just add up more. If you’ve planned ahead, made a budget, and set some money aside, don’t take out that credit card. Many of our clients at David Sklar & Associates simply relied on their credit cards too much for expected, everyday living expenses.
Canadians have spent years adding to their consumer debts. The average Canadian consumer now owes $8,500 in consumer debt – that doesn’t include their mortgage. Record low-interest rates mean that overstretched Canadian households have been able to keep up debt payments for now, but at David Sklar & Associates, we’ve seen what happens when those conditions change. Canadians continue to borrow to cover bills and interest rates are set to rise.
You may be solvent now, but higher interest rates, unexpected bills, or sudden job loss could make you eligible for a consumer proposal or bankruptcy. Anyone who is already deeply in debt should consider their insolvency options. If you’re wondering what is a consumer proposal, head to our midtown office at St. Clair and Bathurst or any of our six locations in the Greater Toronto Area. A bankruptcy trustee will be happy to help you determine your eligibility for a consumer proposal. Your first consultation is free at David Sklar & Associates.
Debt freedom starts with you, but that doesn’t mean you have to do it alone. If you are deeply in debt and need financial help in midtown Toronto, give us a call. Stop by our office at St. Clair and Bathurst or give us a call today.