With consumer sentiment the highest it’s been since the recession, shoppers may have opened their wallets more this holiday season. Will their holiday spending leave shoppers with a credit hangover? The American Bankers Association offers the following tips for determining if you are in credit trouble and, if so, how to climb out.
Signs that consumers are in credit trouble:
- You can only afford to pay the minimum balance required by your creditor.
- You have no idea how much you owe on your credit balance.
- You start to use your credit card for purchases you normally pay with cash.
- You get cash advances from one creditor to pay off another.
Tips on dealing with holiday debt:
- Save receipts for future reference to use in budgeting for next year.
- Don’t forget costs beyond gifts, like postage, gift wrap, decorations, greeting cards, food, travel and charitable contributions.
- Stop using your credit card until you have paid down the balances. Be sure to check statements for unauthorized charges and report them immediately.
- Pay more than the minimum balance so you can to reduce finance charges.
- Call your lender and make arrangements for repayment.
- Call a credit counselor for additional advice.
Horizon is committed to helping consumers responsibly handle credit and save for the future. We offer many savings plans such as a holiday club account that let you set aside money throughout the year for your holiday spending. If you don’t have one already, make it a New Year’s resolution to open a savings account for 2013.