It is time to face a sobering reality: Creditors want to collect on the charges you made while you were caught up in the holiday festivities.More >> It is time to face a sobering reality: Creditors want to collect on the charges you made while you were caught up in the holiday festivities.More >>
QUINCY, Ill. (WGEM) -
You're probably starting to get those credit card bills in the mail that have all your holiday shopping on them.
The National Retail Federation says the average person racked up at least $750 in holiday-related expenses last year.
Mark Schlipman, a wealth management expert in Quincy says the best way to pay off what you owe is something he calls "synergy," focusing all your attention on the credit card with the lowest balance first.
(See "Dealing with the post-holiday debt blues")
"Then there's that satisfaction of, 'Hey I got this one paid off,' Then move to the second one," said Schlipman. "Then you actually reward yourself by saying, 'Hey I got that one hundred percent paid off and now it's time to go on to the second one.'"
Schlipman adds that once you get those cards paid off, you should continue setting the same amount of money aside for Christmas this year so you don't find yourself in the same situation come next year.
Schlipman also says if you are one to cut up the credit card, that's fine. But he says don't cancel it. Sometimes that can hurt your credit more than it can help.
