I was listening to CBC the other day and was shocked by what the host said. According to him, if you paid the minimum balance on a $5,000 visa bill, it would take 17 years to pay it off. That’s a lot of interest.
 
This point really resonated with me because at the start of the New Year, a number of clients hire me, primarily for one reason, to help them get their financial houses in order. They come almost at the breaking point under the strain of keeping up appearances despite their secret life of large lines of credit, unpaid visa bills and years of unpaid taxes.
 
Do you, like them feel overwhelmed by the weight of your consumption? Do you, like them, feel the subtle and not so subtle pressure that our consumer society puts on us to keep up with those fictitious Jones, so spend, spend, spend? Do you, like them, KNOW that the weight of your guilt is making you feel more and more pessimistic about your future, financial and otherwise?
 
If I’ve just described you, here are some suggestions as to how you can avoid the all-too-common January hangover of debts from Xmases past. (And remember, with current interest rates, these debts just keep giving and giving, as the $5,000 Visa bill example so aptly illustrates.)
 Only pay cash for your presents. I know this seems radical in our world of instant credit, but by only using your debit card, or only paying cash, you’ll reduce your impulse buying and keep your buying in check.
 This next suggestion is for those who suffer from a severe case of “creditcarditis”. Get a metallic can, fill it with water, add your visa card and put the can in your freezer. The fact that the can’s metallic means that you can’t defrost the can in your microwave, no matter how much you want to. (One of my clients actually tried.)
 Tell those in your inner circle why you’ll no longer be buying them presents. Be transparent with those you trust and suggest instead that you share some quality time. Many will be relieved and follow your lead with their inner circle.
 Instead of spending money on a gift, give the gift of your time. Offer to babysit a friend’s children, so her and her husband can enjoy a date night. Or run errands for a house-bound senior.
 Make your presents instead of buying them. In our time challenged society, there’s nothing nicer than getting a box of home made cookies, some antipasto or a can of pickles.
 Reject the need to run out and buy someone a gift just because they’ve gifted you. Instead, learn to become more gracious at receiving.
 Put a limit on what you’ll spend on a gift and let others know what it is. Many families do this.
 Another family tradition that’s really popular is drawing names so that family members don’t have to buy for all. This is a great idea, especially in large families.
 While controversial with some, re-gift what you don’t want or need. There’s a reason that the saying, “One man’s junk is another man’s treasure,” is so popular.
 
To use a mixed metaphor, remember this. It doesn’t matter how much alcohol you drink this New Year’s Eve, if you went on what I call a spending bender over Xmas, you’re still going to feel a financial hangover in the New Year. 
 
Take Action Now!
 
If you want 2011 to be a great year, even your best year yet, use the simple strategies listed above to keep your spending in check. Pick one, find someone to be accountable to and set a deadline or doing it. You’ll find yourself in much better shape in the New Year.