What To Do Now That Expensive Christmas Credit Card Bills Are Coming Due

(KNSI) — If you’re afraid to look in the mailbox because those credit card bills from Christmas and the holidays are arriving, you’re not alone.

Millions of people use plastic to cover the costs of gifts and travel, and a new survey from Bankrate.com shows nearly half of all credit card holders carry debt from month-to-month, a 7% jump from last year.

Extension services financial health specialist Amanda Woods says to face the financial mess head on. She says, “Don’t wait until it’s hopeless. Don’t wait until you feel like you can’t get out from under it. Deal with it now.”

She says to look at the money you have, the due bills and pay the essential bills first. If there’s something left over, try paying those credit cards down because the interest will eat you alive. If paying on those cards isn’t possible, and you are in a real mess, Woods says, ask for help.

She says to find a financial advisor. “See if you can find some kind of support that can help you reorganize your finances, that can help you understand the financial situation that you’re looking at, and they can help you create a plan to help you get out of it on the other side.”

Many places offer services at no cost, and she says do not pay for that service if you don’t have to. “If someone is offering ‘pay me this, and I can help you pay down the rest of your debt,’ I would be leery of that.” There are legitimate companies out there that charge, but services can be offered for free if you qualify. Ask to talk to someone at your bank or credit union to get your finances straightened out.

The local extension office can also help. Woods says, “We offer a lot of classes, and we also partner with financial advisors that can help you navigate these things and there’s no fee involved, generally.”

The Bankrate survey also showed the average credit card interest rate is now at an all-time high of 19.6% as the Federal Reserve hikes its rates to fight inflation.