Dealing with Christmas Debt

	Dealing with Christmas Debt - Money Problems Radio Show (Opens in a new window. Optimized for Windows Media Player 6.4 and later versions.)
Originally aired on January 21, 2006.

Show Topic:

According to Visa Canada, 21 million Canadians expected to spend an average of $918 on holiday gifts for 2005, an increase of three-and-a-half percent over last year, and the highest personal average recorded since 1999. That means that for the 2005 Christmas season Canadians spent almost $20 billion. That also means that many Canadians are probably still dealing with Christmas debt.

You don't need to be a financial expert to realize that using a credit card to buy gifts at Christmas can cause money problems in January, February, March and throughout the year.

Why do we get into financial trouble with holiday spending, and what can we do about it?

Guests:

Douglas Hoyes and Ted Michalos are the founders of Hoyes, Michalos & Associates Inc, one of Ontario's leading personal insolvency firms. They emphasize a "fresh start" when dealing with money problems. They can be reached at www.hoyes.com or, in Ontario, at 310-PLAN (no area code required).

Show Summary:

Christmas is an emotional time of year. If we have had a rough time during the year (due to a job loss, or marriage break up, or medical problems) we may try to cheer up ourselves and our family by spending too much at Christmas.

You know you have spent too much during the holiday season if:

	you are getting calls from collection agents;
	you only make the minimum payments on your credit cards each month;
	you take a cash advance on one card to make a payment on another card; and
	you worry about your debts; you have trouble sleeping, and your health, job and relationships are suffering.

Start by determining how serious the problem is. You may be able to deal with your money problems on your own or speak to a credit counsellor or file a consumer proposal or, as a last resort, file for personal bankruptcy.

Question of the Week:

Q. Last year I was laid off for a few months. I got back to work in the fall, but I was behind on some bills. When Christmas came we had done without for a while, so we bought ourselves and the kids some presents. Now the bills are behind, and I'm having trouble sleeping at night because I'm worried about them. What should I do?

A. The answer will depend on each individual's situation. In general terms:

	First, you should get help. Debt problems will not go away on their own. Talk to your family, trusted friends, co-worker, or a professional to help you through this difficult time.
	A credit counsellor may be able to help you work out a plan to repay your debts.
	If your debts are too large to deal with on your own or through a credit counsellor, you should consult a personal bankruptcy trustee to explain your options, and to help you get a fresh start.

Here are some great links to help you:

	Find a credit counsellor
	Information on how to file a consumer proposal
	Information on personal bankruptcy in Canada.

Don't let your Money Problems overwhelm you; contact a bankruptcy expert today for more information on dealing with your Christmas debt.