Many Americans are facing post-holiday credit card debt, but there are ways to regain control and improve financial health.
Many Americans are feeling the pinch, with a recent study showing that 36% of consumers racked up an average of $1,181 in credit card debt just for the holiday season. It’s no surprise that 60% of those who used credit are feeling stressed, and 42% wish they hadn’t spent so much. Plus, a significant number are only managing to make the minimum payments.
Chad Van Horn, an attorney from Van Horn Law Group, points out that the total credit card debt in the U.S. has skyrocketed to $1.17 trillion, which is a $24 billion increase from last year. In Florida, people are carrying an average balance of $7,965, making it one of the highest in the country.
Dealing with debt can feel like a heavy weight, especially with those high interest rates. But don’t worry, there are ways to tackle it. The first step is to get real about your finances. Look closely at what you owe, your monthly expenses, and your income. Write everything down and create a budget that shows where your money is going. Make sure to set aside a specific amount each month for paying off that debt. Consistency is key here.
If your situation feels impossible, don’t panic. There are options. Start by talking to your creditors. They might be willing to help if you reach out before you miss a payment. You can ask about hardship programs that could lower your interest rates or payments.
Another option is debt consolidation, which combines your debts into one loan with a lower interest rate. This can simplify things and make it easier to manage payments.
You might also think about working with a debt settlement company to negotiate a lump sum payment to settle your debts. And if things are really tough, bankruptcy could be a last resort to help you get a fresh start.
As you work on your finances, remember to rebuild your credit. Pay your bills on time and check your credit report for any mistakes. Avoid taking on new debt unless it’s absolutely necessary.
It’s also important to protect what you’ve built. Consider legal tools like trusts and wills to safeguard your assets. If you’re facing legal issues, an attorney can help you find ways to protect your property.
Once you’re on the right track, think about your long-term goals. Start saving for retirement, build an emergency fund, and consider saving for your kids’ education if that applies to you.
Finally, don’t fall back into the habits that got you into debt in the first place. Stick to your budget, pay attention to your bills, and avoid relying on credit cards.
This year, make a solid financial plan and commit to better spending habits. Take charge of your financial future now, so you won’t be part of next year’s holiday debt statistics.
Chad Van Horn is the founding partner attorney of Van Horn Law Group, P.A., one of Florida’s top bankruptcy firms based on recent filings.
