(undated) — One popular New Years Resolution is to make better financial decisions. And, for many, that means cleaning up massive credit card debt.
“It’s the holiday credit hangover. Consumers and businesses are really trying to figure out what the fourth quarter did to their bottom line,” said Meza.
Jason Meza with the Better Business Bureau of Texas says it’s never easy to start. That first call, he says, should be to the credit card company. They can often work with you.
However, that means you need to stop using the card for additional purchases. Meza says that can be difficult for some, because inflation is making it harder for many folks to avoid using their credit cards.
“It’s hard to get a hold of it sometimes because of Christmas (and) the holidays. Spending is up, but at the same time, now that first quarter is in — credit card debt is at another record high,” said Meza.
Meza says if you need help getting out of debt, there are many companies that can help. But he warns that you need to be cautious before you sign up.
“The company may promise a guaranteed low interest rate, but then they get you on the hook, they get you for fees and then they vanish,” said Meza.
The Federal Reserve reported last month that American’s credit card debt hit the highest level on record. The report also showed new highs for balances on mortgages, auto loans and student debt.