How increasing interest rates could affect your holiday spending
Holiday spending can prove to be stressful, especially with increasing interest rates.
Recent MNP data shows British Columbians are concerned about how increasing rates could cause additional financial turbulence this time of year.
“If we’re buying anything on credit and we’re not repaying it before our bill is due then any interest rate hikes could cause us to be paying more than we anticiapted in the new year,” explained Leah Drewcock, MNP Vice President in Prince George.
“So we should really be trying to buy within our financial means and pay our credit cards off whenever possible before the interest starts to accumulate.”
Recommendations on how to keep your spending as low as possible include making your own gifts, paying with cash and paying off your credit card as soon as possible, and sticking to a proper budget.
While budgeting is something Drewcock believes is a year-round commitment, she said there is no time like the present to get started.
“If you have overspent and you’re feeling a little bit of buyers remorse or regret and you’re worried about how you’re going to repay it, it all cmoes back down to looking at the budget, looking at your future earnings and spending habits, and trying to make reductions.”
An example Drewcock listed as a small reduction, but one that can add up over time, is buying one less coffee per week.