For Immediate Release: February 7, 2012
Contact: Rebekah Sweeney, (608) 266-3790
Jorgensen’s Journal: Dealing with Post-Holiday Debt
The Christmas tree has been turned into wood chips, extra pounds from holiday hams and candy canes have melted off and the family get-togethers are becoming fond memories. At this point, for many, all that truly remains of the past holiday season is the debt.
It’s no surprise that the most wonderful time of the year can also be the most expensive. The cost of special dinners and presents adds up, and compounds the debt problems some families constantly face.
Industry experts estimate that the average credit card debt for an American with at least one card now tops $10,000. For those who don’t make the monthly minimum payment, the average debt is close to $16,000.
Credit card debt is a sign of our times; many folks are unemployed or underemployed. Unfortunately, these people may find their only choice is to pay with plastic for essentials: groceries, gasoline, and utilities.
But, if you feel like you’re drowning in debt, know that there is help for you to regain control of your fiscal future.
First, I urge you to check out a state website dedicated to financial literacy:
www.finlitwi.org. Different sections of the site are geared towards adults, students and educators; all have a wealth of links to recommended reading materials, savings calculators and local experts who can help answer your questions about money. On the site, I learned that the University of Wisconsin-Extension offers educational programs and workshops for the public that outline strategies to budget your income and manage credit wisely. The UW-Extension also provides one-on-one financial counseling sessions; if you are interested in this service, call 608-261-5077.
General principles put out by the UW-Extension recommend that if you cannot make a credit card payment, contact your creditor before they contact you. When you call, you may be able to negotiate the size of your next payment. Remember that creditors don’t have to agree to a lower payment, but you can always ask. After the call, follow up with a letter, confirming the terms of your agreement. Note the name of the person with whom you talked and the date and time of the conversation.
If you need help talking with your creditor, you may be tempted to contact one of the many credit counseling or consolidation agencies out there. But, beware: debt negotiation can be risky and may impact your credit report long-term. Know that these businesses do charge fees, and ask plenty of questions in advance of signing an agreement about those charges. To find a reputable counselor, visit
www.debtadvice.org. You can also contact the Federal Trade Commission at 1-877-FTC-HELP or the Wisconsin Consumer Credit Act Section of the Department of Financial Institutions at 1-800-452-3328.
You are not helpless as you try to deal with debt. Take advantage of some of the free and low-cost help that’s available. With good guidance and hard work, eventually, your big bills from the holidays - or from anything else - can be a thing of the past, too.
###