Christmas Credit Card Crisis

December 29th, 2007 | Money Musings

Credit Cards.jpg

Though the hustle and bustle of the crowds last week, as I was finishing my Christmas shopping last week, it suddenly struck me how many of the people around me were using credit card after credit card to pay for their Christmas shopping. Now I am sure some of these people are in a financially sound position and will have the money set aside to pay their bills in January. However, I am also sure that there are large portion that will be facing a credit card crisis come the new year.

Trent, over at the Simple Dollar, recently wrote that his father “likes to joke that the happiest day of the year is December 25th and the saddest is December 26th.” I think that the saddest thing for me is that this isn’t even a joke anymore. Thousands of people are maxed to their limit on their credit cards and facing a debt crisis. The ever increasing pressure from society to spend, spend and spend some more, especially around the festive season, can only exacerbate the situation. CNN Money recently published an article highlighting the problem, stating that “Americans are falling behind on their credit card payments at an alarming rate, sending defaults and delinquencies surging by double-digit percentages in the last year.”

So many people seem to be lost in a whirl of consumerism and unable to grasp what Christmas is really about. While it depends of your own personal beliefs, for me, as I am not religious, it is about enjoying spending quality time with my family and being thankful for all the things we have.

I am not attacking buying Christmas presents or spending money on your loved ones - I have been know to splurge on the perfect gift for my mother. I do however feel that too many people are not only risk their own futures, but also those of their children because they are unable to see the bigger financial picture, unable to live within their means, and are unable to break away from the materialism that pervades society. Children so often copy the behaviour of their parents, and if they grow up seeing that Christmas as a materialistic competition to see who can get the most presents or spend the most money they are likely to carry this on into adulthood.

With our countries facing such a debt crisis, I think it is time for people to take stock of what really matters. Paying off your debts matters more than an buying expensive Christmas present. Starting an emergency fund matters more than buying an expensive Christmas present. Saving for retirement matters more than buying an expensive Christmas present.

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