Credit cards make it much easier to buy the gifts you want for your friends, your loved ones, and yourself, even if you don’t have all the cash on hand. But eventually, all those bills come due.
Gerri Detweiler is director of consumer education for Credit.com.
“Even if you can pay the bills off in January, your credit score could take a hit, because you start approaching those limits on your credit cards with your balance.”
There’re a couple of options for people who’ve gone overboard.
“One is to just try to try to pay off the balances as quickly as you can. If you can do it yourself in a few months, that’s great. If not, you may want to either reach out to a nonprofit credit counseling agency, or you might be able to consolidate some high-interest rate credit card debt with a low-interest rate loan.”
For a free credit report, visit AnnualCreditReport.com.