Handling Holiday Bills

Date: December 1, 1998
Editor: D'Lyn Ford, (505) 646-6528, dlford@nmsu.edu

LAS CRUCES -- Bills arrive all too soon after the holidays. They seem to multiply as time goes by. Many consumers are unaware of how much they actually spend during the holiday season, so they don't know how many bills to expect, said a consumer education specialist with New Mexico State University.

"Paying off holiday bills can cause a great deal of stress for many families," said Susan Wright with NMSU's Cooperative Extension Service. "This is due in part because most Americans have little or no savings to help pay unexpected bills."

According to the Wall Street Journal, about 70 percent of all working adults have no money left over after the monthly bills are paid. High holiday bills may push families to make hasty decisions about how to pay them, Wright said.

If bills are a problem, don't panic, but take action as soon as possible, she said. There are strategies that can make getting out of debt a little easier.

"First, communicate with your creditors to let them know you are having financial trouble," Wright said. "You can do this personally or you can work through a debt and credit counseling service such as the Consumer Credit Counseling Service."

These services are free to people who are in financial trouble. But be careful about seeking assistance from "credit repair" businesses that require payment for services.

"Determine how much and to whom money is owed," Wright advised. "Tell creditors you intend to pay your bills, show them a written plan of action for meeting your debts, and let them know how much you can afford to pay and how often you will be able to pay."

Often, when creditors see that people are seriously trying to pay their debts, they are willing to adjust payment schedules to ensure eventual payment, she said.

While paying off debts, families should develop new spending priorities and practices that will help them stay out of debt in the future, Wright said. Avoid the temptation to borrow to pay debt. Getting out of debt takes time and patience. Efforts will result in an improved credit rating and a more secure financial future.