Debt Expected To Stick Around After Holidays

Kevin Foster, TRW Credit Services.
Kevin Foster, TRW Credit Services.

Elise Preston
NewsChannel 10

AMARILLO, TX - A large number of  families are expected to unwrap some debt now that the holiday season is winding down.

Credit counselors tell NewsChannel 10, they will soon see a rush of activity as shoppers scramble to pay off thousands of dollars overspent during the holidays. Many families either charged way too much, or ignored paying bills to buy presents. Those habits will then carry on into the new year as people wait anxiously for tax returns to pay off debt racked up during the holiday season.

According to counselors,  those who bank on that tactic are usually disappointed.

"It just prolongs the agony...because generally what happens is a few months later, they get right back in the same jam again and then they are in to see me to help with their credit and debt issues because they have themselves buried once again." said Kevin Foster with TRW Credit Services.

Foster recommends, shoppers stick to their budgets when heading out to stores or online shopping. Especially now, as after Christmas sales are hoping to lure even more money out wallets.

Counselors urge everyone to tighten their belts when it comes to spending over the next few weeks and years to come.

"The first thing they need to do is dig out that budget they set back in the fall.  Blow the dust off on it and regroup so that next year when the same time comes around they are not trying to rob Peter to pay Paul. They'll have the money set aside for Christmas. What would be nicer than to have a debt free Christmas?" said Foster.

Foster also urges families to be weary of pay day loans with astronomical interest rates when looking to pay off that new doll or gaming system. In many cases, for each dollar borrowed, spenders end up paying back four dollars.