As Holidays End, The Bills Start Rolling In

During the holidays, American consumers stepped up their spending as they bought presents and other holiday items to celebrate the holidays. As consumer spending stepped up, so did credit card use among a few consumers, though not as many as before.

Just a few years ago, a majority of those who shopped would’ve used their credit cards for shopping. Now, shoppers are opting for cash and debit in an attempt to keep their credit usage in check. Consumers are now much more aware of the dangers of overextending their credit. The slow economy and the growing unemployment rate is certainly keeping people very much aware of the risk of letting their personal finances go haywire.

However, even though a majority of American consumers are focusing on responsible spending, there are still a considerable number of consumers who got themselves caught up in the season and overused their credit cards. As most consumers are aware of, this is particular easy to do, especially if the credit card is right there in their pockets.

For those who have found themselves with considerable credit card debt after the holidays, the best thing to do is to pay off the credit card balances immediately. Ideally, consumers should try to move away from their concept of credit as delayed cash payments and instead consider it as near as they can to cash payments – meaning, pay it off as soon as payment is due.

Of course, paying credit card debts off completely is not applicable for everyone. For those who just can’t pay off their debts in due time, the best thing to do is to pay as much as they can every month. It is not a good idea to stick to the minimum amount due only. When card holders pay only the minimum amount due, a large part of their payment actually goes only to paying off their incurred fees. Only a small amount goes to paying off the debt which means that their debt will last longer and they will be paying more for it in the end.

While still paying off their credit card debt, it is best that consumers avoid adding to it. If they have to use their credit cards, then they should stick to necessities only. If they add up to their debt even as they are paying it off, this will make it harder for them to completely close down that debt and will only add up to the fees that they are already paying for.