Consumers Deal With Holiday Debt Hangover
2 hours, 30 minutes ago

By EILEEN ALT POWELL, AP Business Writer

NEW YORK - As those holiday credit card bills roll in this month, many people have a deep sense of discomfort.

But credit experts say that instead of feeling overwhelmed by their bloated balances, consumers should use the occasion to get a handle once and for all on their credit card debt.

That could be a bit harder this year because holiday spending was so strong, warned David C. Jones, president of the Association of Independent Consumer Credit Counseling Agencies, based in Richmond, Va.

"There was a huge amount of spending this Christmas," Jones noted. "That's good for retailers, but maybe not so good for consumers because there can be serious issues as people get themselves back together financially."

He said two early warning signs of trouble are when consumers can't afford the minimum monthly payments on all their cards or fear they can make pay the minimum for months to come.

As a result, he said, many consumers "worry there's no way out."
But Jones and other credit experts say there are steps consumers can take themselves or with help from professional credit counselors to deal with their debts.

Susan Shain, of Bethpage, N.Y., sought help from the nonprofit Consolidated Credit Counseling Services Inc. of Fort Lauderdale, Fla., when she was overwhelmed by credit card debt. She said a divorce several years ago set her back financially while the day-to-day costs of raising two daughters kept rising.

"I was using my credit cards a lot," Shain said. "Part of it was covering necessities. But mostly it was to make sure the kids were OK, because I just didn't want the situation to affect my daughters."

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