Paying off holiday debt in the New Year – CBS Pittsburgh

PITTSBURGH (KDKA) – The numbers are ours and we know holiday shopping has increased.

We also know that many families are struggling financially, which means many use credit cards to cover vacation costs.

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It’s the most magical time of the year, that’s until the bills come in and we realize the damage we’ve done.

So, how do we get our finances back on track in 2022 after the holidays are over?

“Every financial decision is based on emotions and during the holidays we get really hot with our emotions,” says Paul Oster.

Oster of credit repair company “Better Quest” said while many people want to spoil family and friends this holiday season, it may have resulted in damaged credit.

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“One in three Americans admits that they will put all this debt on a credit card, and when you do, it starts to affect your credit score,” he explains. “Unfortunately, you have a lot of consumers who didn’t pay off their holiday debt last year. So it becomes a real vicious circle.”

Oster advises that the money has been spent and now that the bills are here, it’s time to start working on the recovery.

“Unless you sit down and put it on paper, which takes 20 minutes, people don’t take two minutes to calculate their household budget,” says Oster. “Take 20 minutes, calculate your household income, your expenses and how you will pay off this debt.”

He also says it’s never too early to prepare for next year.

“Believe it or not, planning for next year needs to start today,” he said. “The reality is that we all live in this crisis mode every single holiday, and we have this holiday hangover, ‘I can’t believe I’ve spent so much, how did this happen again?'”

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He suggests opening a separate holiday savings account now, and for the debt, make sure to pay more than the minimum payment.