Christmas charges can burden New Jersey residents in the New Year

In Cherry Hill and elsewhere across New Jersey, residents are taking down their holiday decorations and preparing for the New Year. The presents have been unwrapped and after indulging for the last few months, many are beginning to think of shedding some of those holiday pounds as part of their New Year’s resolution.

It is not just one too many holiday cookies and pies that can qualify as over doing it during the holiday season. After the feel-good effects of the holidays wear off and the bills start rolling in, many residents begin to panic as they realize they spent far more than intended on their holiday shopping. In fact, 25 percent of consumers on the national level report that they will need at least three months to pay off the credit card debt they accumulated this holiday season.

It can be tempting to buy a loved one the prefect present, put it on the card and plan on paying the minimum balance overtime to spread out the payments. However, minimum payments can be problematic because this leads to a greater loss of money through interest over time. Further, additional and sometimes unexpected purchases often pile on, and an individual will quickly feel overwhelmed when looking at a bill detailing a seemingly insurmountable figure.

In another survey of consumers, one in eight Americans report carrying in excess of $10,000 in credit card debt. For some, thinking about the number puts knots in their stomach. If an individual in New Jersey is to the point where they let the mail pile up in the mailbox for fear of looking at the bills, or let the phone continually ring to voicemail for fear that it will be a creditor on the other line, there is help.

Credit card debt is a large reason that many residents pursue a financial fresh start. Either through discharging unsecured debt through filing for Chapter 7 bankruptcy, or restructuring the debt in a manageable payment plan through filing for Chapter 13 bankruptcy, an individual can find their way out from under their debt.

Deciding that the debt has become unmanageable and knowing how to alleviate the issue can be overwhelming. Talking to an experienced bankruptcy attorney that can assist an individual in evaluating their options is a wise first step toward financial freedom.

Source: Cache Valley Daily, “Regrets about holiday spending? Change that now,” Christ Thomas, Dec. 27, 2012

Related Posts: CARD Act helping consumers avoid, understand credit card fees, Stats point to signs of improvement in U.S. credit card debt, Keeping debt solution options in perspective, Can understanding credit cards can help people avoid debt?

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Attorney Joel R. Spivack is an experienced bankruptcy and residential real estate transactions lawyer in Cherry Hill, New Jersey. Clients come to us for legal services, but what we really provide is peace of mind. For more than 30 years, Attorney Spivack has helped people make wise, informed decisions about bankruptcy filings, debt relief options and residential real estate transactions.
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