Ringing In The New Year With Old Debts

ROCKVILLE, MD. –– As many Americans are developing plans to lose holiday weight gained from Christmas cookies, eggnog, and New Year’s Day football snacking, countless others are worried about shedding off excess debt from a season of holiday shopping. January and February are the months when bills for gifts and other holiday expenses arrive in mailboxes across the United States. Those bills could be a shock to many of the shoppers.

“Many people plan to spend a certain amount on their holiday shopping but end up going overboard once they get to the mall,” said Pam Rhode, president of Myvesta.org, a nonprofit consumer education organization. “Usually that ends up on credit, which can get very expensive if you don’t have a solid plan to pay everything off.”

According to the annual Holiday Shopping Survey conducted by Myvesta.org, the average shopper planned to spend $835 on holiday purchases in 2003. When that is added to the average individual credit card debt of $2,294, the holidays can put a serious kink in an individuals debt reduction plan.

“The most important thing is to develop a plan to get rid of that holiday debt quickly. You don’t want to be paying for last year’s gifts when the next holiday season comes around,” Ms Rhode said. “Track your expenses for at least a month, adding up all of your bills and your everyday purchases. Then subtract that number from your monthly income. Put whatever you have left over toward getting rid of that holiday debt and you’ll see your balances drop much quicker than if you only concentrate on making minimum payments.”

For more help in dealing with holiday debts, read the Myvesta.org publication Avoiding Post-Holiday Headaches. For $5 it can be downloaded from Myvesta.org online, or for printed copies write to Avoiding Post-Holiday Headaches publication, Myvesta, PO Box 7153, Gaithersburg, MD 20898-7153.