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How Sale Purchases Can Impact Your Debt

SALE. This sign in a store window can make all the difference between walking in and walking by. For Canadians coming out of the holiday season with additional debt, it’s a sign you may want to ignore.

Stores often use sales to lure customers in, even when the deals aren’t so great. With Ontarians carrying an average of $22,022 in consumer debt, according to figures from last summer, it’s important to think critically about sales as part of your bigger debt plan.

How can sale purchases impact your debt?

If you’re starting the new year seeking debt relief, one way to motivate yourself is to change your mindset about debt. This can manifest in many ways: you can start thinking long-term, what life will be like after debt. You can also change your critical thinking in the short-term, especially when it comes to shopping.

The draw of a good sale can be tempting, even if you really can’t afford the item. It’s easy to rationalize – “this mixer won’t be this cheap again,” “I’ve been wanting a new jacket for months.” Chances are, those sale prices will come around again.

And what about the lure of those easy financing offers? Before agreeing to finance a purchase with interest, add up the total cost with the added interest charges. The sale may not be as great as you think. Finally, beware of those pay-no-interest until 2020 offers. If you fail to make your payments or violate the agreement, you’ll end up paying interest from your date of purchase!

Think critically about whether an item fits in your budget, and if it will add to your debt or throw off your ability to make debt payments. Changing one spending habit or adjusting how you view consumer debt can help with reaching your debt relief goals this year.

In this podcast, BDO Licensed Insolvency Trustees from across the country discuss how to avoid those impulse purchase, along with four additional tips to help you change your mind about debt in 2018.

Do you have other tips for changing a mindset on debt? Join the conversation on social media by using the hashtags #DebtSolutions, #ChangeYourMind, #NewYearMotivation, and #NewYearsResolution.