With the impending Black Friday spree, Canada’s largest insolvency firm is urging consumers not to get caught up in the shopping fever.
MNP Ltd. president Grant Bazian warned that “door crashers” and “massive discounts” trigger a false sense of urgency among shoppers and encourage rash decisions such as impulse purchases and overspending.
“There seems to be this ‘everyone’s doing it’ mentality around Black Friday that makes people spend outside of their means. But even if it seems like there are deals to be had, they aren’t worth piling on more debt,” Bazian stated.
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Nearly half of Canadians (45%) told MNP that their financial situation is the worst around the holidays, more than any other time of year. MNP’s poll also found that 61% of respondents are planning to scale down on holiday spending this year.
“Impulse purchases end up costing a lot more than the sticker price once you factor in the interest accrued on credit cards. So the perception that you’re getting a deal isn’t real. If you already carry a balance on your credit card, do not shop on Black Friday,” Bazian said.
The executive expressed optimism that shoppers will be cutting back on their spending this year. Bazian added that he is hoping people choose to opt out of Black Friday entirely in favour of Buy Nothing Day.
Founded in Canada in 1992 with the goal of challenging holiday shoppers to exercise restraint on Black Friday, Buy Nothing Day attempts to curtail expenses on what is now the biggest shopping day of the year in Canada.
“Spend time with loved ones instead of money. Get creative and hand make gifts. If you absolutely have to purchase gifts, make a conscious effort to shop responsibly, shop thoughtfully and shop less this holiday season.”
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