Douglas Hoyes, Bankruptcy Trustee

Over the next two weeks you will be getting together with family and friends.  You may see people you only see once a year.  You will have a lot of catching up to do.

Remember Christmas two years ago?  It was great.  Your cousin was working lots of overtime at the plant, so he had lots of money and seemed happy.  Your brother was in a great mood because his stock portfolio was way up.  Even your father was happy, because the value of his house was at a record high.

You probably won’t be having many conversations like that this year.  Your cousin may only be working four days a week, your brother’s stock portfolio is a lot lower than it was two years ago, and your father is worried that the price of his house will keep dropping. You will probably talk to many people over the next two weeks who have lost their job, or had their hours cut back at work, or have gone through a separation or divorce, or perhaps have had a medical issue that has caused them to miss work.  For many people this has the makings of a less than merry Christmas.

What can you do to help your family and friends through this difficult time?

First, be a friend.  “Lend an ear”.  Listen to their problems.  Start by telling them that they are not alone.  Tell them that there has been a massive increase in personal bankruptcy in Canada this year. Many others are also suffering through this recession.

Then, tell them what you have done to get through the recession.  Perhaps you have made a personal budget to keep close track of your expenses.  Discuss what you have done to cut your expenses.  Talk about how you are looking for a part time job to supplement your income.

You don’t have all of the answers; no-one does.  But by talking with your family and friends you can share ideas, and we can all help each other get through this difficult time.

Finally, after talking about all of your problems, spend some time talking about everything that’s good.  You have a family and friends.  You have a job.  You have your health.  So don’t spend all of your time focusing on the problems. Yes, if you have financial problems you should start researching solutions to money problems. But you should also take time this holiday season to acknowledge the positive things that are happening in your life, and have a Merry Christmas.

Doug Hoyes, Bankruptcy Trustee

I have worked as a personal bankruptcy trustee in Canada for many years, so I know from experience that one of our busiest phone days of the year is the first Monday back after the Christmas holidays. I assume that January 4, 2010 will be no different: the phones will be ringing off the hook.

I have worked as a personal bankruptcy trustee in Canada for many years, so I know from experience that one of our busiest phone days of the year is the first Monday back after the Christmas holidays. I assume that January 4, 2010 will be no different: the phones will be ringing off the hook.

Why? Because we all tend to spend too much at Christmas on our credit cards, and as the bills start to arrive in January we realize that we have a serious problem. But it’s not just the bills that cause us to worry.

Christmas is, for many people, a very stressful time of year. Canada is currently suffering through our worst recession in decades. Many Canadians have lost their jobs, and simply don’t have the money they’ve had in the past to buy Christmas presents. That’s stressful; we worry that we are letting our family down.

Many others went through a life changing event this year, like a marriage separation or divorce. You may be alone this Christmas for the first time ever; that’s very stressful. Being alone also gives you a lot of time to think, and a lot of time to worry about your bills.

So what can you do to avoid problems in January?

First, make a plan. When you had money in the past you could spend a lot on Christmas presents. This year that may not be possible. So be realistic. If you only have $50 to spend, that’s all you have, so that’s all you can spend. Talk to your family and friends and explain that while you would love to buy expensive presents for everyone this year, you simply can’t.

Guess what: they will understand. You are not alone. Everyone else is in the same predicament. Very few people saw their incomes increase this year; most Canadians are suffering from reduced income and higher expenses, so they will understand your situation. Don’t hide from your family and friends. Don’t be embarrassed. Face everyone head on, and tell them what’s happening.

Second, enjoy Christmas. You can still give gifts without racking up your credit cards. If you are a creative person, make gifts for people. If you have skills, use them. Tell your mother that this year your present will be shoveling her driveway all winter. Tell your father you are taking over his lawn cutting duties this summer. Tell your sister that you will watch her children a few times this winter so she can go out to dinner with her husband. And tell your friend that your present to them this year will be four hours of your time to help them figure out why it takes ten minutes for their computer to boot up every morning!

Can’t afford to host your big Christmas party this year? No problem. Talk to your close friends and family and arrange a simple “bring your own” party. Everyone contributes part of the meal, so the cost isn’t huge for anyone.

You can avoid the post-holiday credit crunch, but only if you take action now, make a plan, and be up front with your friends and family. They will appreciate your honesty, and you will have a much less stressful Christmas.