By Jasmin Brown

BDO Debt Solutions

Avoiding Summer Debt

Jul 17, 2024 | 10:55 AM

“The views and opinions expressed in this article are those of the author and do not necessarily reflect the position of Pattison Media and this site.”

Summer is a time of year to relax, unwind, and enjoy the warm weather. People also tend to take a similarly relaxed approach to their finances this time of year.

During the summer, people tend to spend more and save less. Many are planning vacations, staycations, and day trips to make the most of the warm weather. People are also spending more on social gatherings, gardening, yard work, and renovations. For those with children, they also tend to see increased costs related to summer camps, day camps, sports, and childcare. The bottom line is that summer can be expensive.

The Summer Budget

To avoid taking on new summer debt, the first thing you should do is create your summer budget.

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To do this, you want to start by looking at what you have available after your bills are paid. It may be an option for some to bring in some extra cash through a second job or side gig, but if it’s not, the next step is to look at where you can potentially save some mone

Some things you may be able to do to save this summer are:

• Temporarily disconnect or unsubscribe your cable or streaming services
• Pause your gym membership and get active outside
• Plan a staycation vs. an expensive trip
• Book any flights you may have to take during non-peak travel times (early mornings, mid-week, or late night)
• Carpool with family or friends
• Search around or use an app to find the cheapest hotel rates
• Pack a picnic instead of going out to eat
• Have a backyard barbecue and make it a potluck
• Cash in any available reward points
• Plan ahead for any summer trips
• Take advantage of free activities in the community – a day at the park or at the beach

The Cost of Putting Summer Spending on a Credit Card

According to a recent survey from Deloitte Canada, consumers plan to spend an average of $2,405 on transportation and lodging costs for their major summer trip. If a person were to pay the entire $2,405 on their credit card, at an interest rate of 25%, make only the minimum payments, and not add any additional debt, it would take them approximately 18 years to pay it off, and would cost an additional $3,800 in interest.

It is so important to pay attention to your summer spending, particularly if you plan onusing credit to do it. Summer should be about good times and making memories with family and friends.

Remember, you don’t want to be paying for summer long after the season is over!

If you are having trouble making ends meet each month, finding the right debt solution can help. Visit the BDO Debt Solutions website for more information, or call 1 855 BDO DEBT to book a free, no obligation consultation.

Jasmin Brown is a Senior Vice President overseeing the insolvency practice in Saskatchewan. She is committed to providing creative and practical debt solutions with empathy, understanding and professionalism to help people overcome their financial difficulties.