Dont Let Blue Monday Keep You Down Tips

Blue Monday was coined by psychologist Cliff Arnall when he calculated the third Monday in January as the most depressing day of the year. Why? Because that's when a combination of the weather, rising debts and a return to work after a wonderful Christmas and New Year celebrations comes baring down on peoples' minds. 

This year Blue Monday falls on January 15. Even though there is little proof that Blue Monday is real, popular culture regards it as being the most depressing day of the year and demand for debt counselling increases during the days, weeks, and months following it.

We all make financial mistakes but our capacity to learn from our mistakes is key. If Blue Monday is caused by your pre-existing debt problems, you can combat the blues by taking control of your financial situation. This may start with a review of your credit bureau report from Equifax and from TransUnion to ensure that: (1) you recognize the information reported on your credit file; and, (2) the information reported, by your creditors, on your credit file is complete and accurate. 

If the information is inaccurate and you wish to initiate an investigation to update or remove certain information from your credit file, you will need to complete and submit a Consumer Credit Report Update document to the appropriate credit bureau. Information regarding the credit bureau can be found on the internet by googling Equifax or TransUnion.

Five Tips To Combating Blue Monday

1. Budget for the holiday celebrations.
2. When you buy gifts for others, think of what you want to buy and how much you can afford to spend. Make a shopping list and do not deviate from that list.
3. Avoid impulse spending sprees. Purchase only what you need and pay by cash or debit.  If you need to pay by credit, try to use one credit card, only.
4. Forget the wants and focus on your needs. Buy a journal or a pocket book and get into the daily habit of journaling your expenses. Journalizing can become a powerful motivational factor in your daily life by helping you visualize your spending and sticking to your budget.
5. Paying yourself first is motivational. Paying interest is depressing.  Open a new investment account (i.e. Registered or Non-Registered Tax-Free Savings Account, GIC, Mutual Fund, etc.) and from each pay cheque, get into the habit of paying yourself first by investing at least 10 percent of your net income into your new investment account. If 10 percent is not doable, start with 5 percent and work your way up. Budget for the remaining funds to pay your monthly non-discretionary (ie: rent) and discretionary expenses (ie: entertainment).  Look at flyers for stores that offer discounts and try shopping using coupons.

How A Licensed Insolvency Trustee (LIT) Can Help

We all know that an unmanageable debt load can lead to feelings of shame, anxiety, and depression. Don't feel ashamed of your debts – you are not the first Canadian facing debt issues and you will not be the last. 

Rather, take control of your financial situation by speaking with a qualified professional to become better informed of all your available options and the merits and consequences of each option. Stay focused on becoming debt-free and in due course, your outlook on your finances and your life will improve for the better.

An LIT can help you become debt-free sooner. As a federally licensed professional appointed by the Office of the Superintendent of Bankruptcy, the LIT will listen, review, and discuss your financial concerns with you. The LIT will provide you with a financial appraisal of your particular situation outlining the best-fit solutions to deal with your debts, even if a solution does not involve the services of the LIT.  

And while an LIT can't stop the sun from hiding, especially in the months of November to March, you can do your part by staying active and supplementing your loss of sunshine with vitamin D.