January 22, 2007

Now that the holidays are over people are trying to stick to their New Year’s resolutions. For many it’s losing weight or quitting smoking. For others, it may involve getting out of debt.

The post-holiday financial ‘hangover’ doesn’t have to define the rest of your financial year.  With smart planning you can take steps to minimize the anxiety of post-holiday bill paying.

To that end, Consumer Credit Counseling Service (CCCS) of North Central Texas offers the following tips for getting rid of holiday debt.

• DO assess your debt. Total up all your receipts from holiday shopping, entertaining and traveling so you can prepare for the bills as they’re delivered. Carefully review your bills as holiday time is often riddled with an increase in identity theft. Make sure you can account for every purchase. Unauthorized charges should be disputed immediately, and in writing.

• DO pay your bills as soon as they arrive.  Avoid getting hit with late fees or over limit fees. At the first sign of a late or missed payment, inform creditors of your present situation and how you plan to resolve financial problems. If you have a good credit and payment history, you may be able to negotiate your next payment. Remember, your creditors would rather keep you as a customer than lose you to bankruptcy.

• DO pay more. Pay more than the monthly minimum payments as often as possible. Add extra cash to accounts with high interest rates. Remember, credit card debt is simply an unsecured loan. The longer the life of the loan, the more you’ll pay for borrowing the money.

• DO use your gift cards. Chances are if you got a non-store specific gift card for the holidays you can use it at the grocery store or drugstore or other places where you purchase everyday items. That way, you don’t have to reach into your stash of cash. It’s just like getting free stuff. Or you can use money usually spent on necessities to pay down more post-holiday debt.

• DO develop and stick to a budget. Creating a budget helps you understand exactly where your money goes so you can meet your financial goals. Following the budget you’ve outlined will help your savings grow and your debt levels shrink.

• DO sell unwanted holiday gifts. Why wait to re-gift later in the year when you can sell unwanted holiday gifts over the Internet? With online resellers such as Craigslist, e-Bay, and Froogle, the Internet has made it easy for anyone with a Web connection to sell unwanted items for some fast cash. While it also could be easy to shop while trying to sell, don’t give in to the temptation!

• DO start saving now! The Christmas holidays come at the same time each year, so start saving now and you’ll hopefully avoid a holiday debt hangover next year. Check local banks or financial institutions for Christmas savings accounts.

• DO find relief through CCCS. From financial education to debt management services, CCCS has trained, certified credit counselors who offer low-cost and free financial educational information, money management advice and debt reduction services. Call toll free 800-856-0257 or go online at www.cccsnct.org.