All of those Christmas sales and the excitement of Black Friday sure make it tempting to overspend at the holidays. Wherever you look anywhere in the Denver metro area, you’ll see ads, holiday decorations and invitations to buy more and buy now! From Flatirons Mall in Broomfield to Cherry Creek, Park Meadows Mall in Lone Tree, The new Outlets in Thornton and of course Amazon, holiday debt can rack up quickly.
You know what I’m talking about. Save 10 percent if you sign up for our credit card. Buy one get one free! Don’t forget Dad this Christmas.
On and on it goes and I’ll admit, some of those deals do make overspending an easy thing to do. I actually found myself looking twice at a billboard on my drive to a meeting in Centennial.
Don’t worry: I looked away because I know I don’t really need what that nice store was selling.
The problem with all of these tempting ads is that they work. They do convince us that we simply must overspend at the holidays.
The logical problem that follows holiday overspending is too much holiday debt.
If you find yourself overspending during the holiday rush, you might find yourself in a debt situation you simply can’t pay off. If that happens, the next thing you’ll need to do is make an appointment with me to discuss your bankruptcy options.
January and February are Busy Bankruptcy Months
Since the day after Thanksgiving typically starts the annual holiday spending spree, it’s not such a surprise that bankruptcy filings begin to rise in January.
And for many families, excessive spending actually starts before the holidays. This is because of budget-busting back-to-school expenses. Medical visit co-pays, new clothes for the kids, sports uniforms and equipment, musical instruments for band, school supplies and so forth.
Then, a couple months after school starts, it’s time to get ready for the holidays and the spending spree kicks back up.
By the time the January and February bills start piling up, the debt problem is already out of control.
I wrote about this recently, urging my readers and clients to resist the uge to over-buy at the holidays. If you missed that post, please check it out here. It’s packed with some great ideas for spending less and enjoying the holidays more. (I am particularly fond of one client’s idea for giving the gift of time instead of materials gifts that cost money.)
However, if you do overspend over the holidays and you later find yourself unable to pay your bills, then don’t let the problem get worse over time. The sooner you take action, the sooner you can get a fresh start on a better financial future.
When bankruptcies are on the rise, my office is busier. So if you think you’re going to want to talk with me about settling your debt problems with a Chapter 7 or Chapter 13 bankruptcy filing, I urge you to schedule an appointment now.
Consultations are free and confidential. Together, we can get you back on good financial footing.