By Webster Tilton To shop is to run up bills. And, eventually, those bills come due. Very soon many of us will be deluged in holiday credit card bills, or other bills we put off in order to buy presents. So how do we handle this onslaught of debt? Hopefully you budgeted before-hand. You had a goo...

By Webster Tilton

To shop is to run up bills. And, eventually, those bills come due. Very soon many of us will be deluged in holiday credit card bills, or other bills we put off in order to buy presents. So how do we handle this onslaught of debt?

Hopefully you budgeted before-hand. You had a good idea of how much you could afford to spend and you knew how long it’d take you to pay it off. But what if you didn’t? Before you can fix the problem first you have to know the scope of it.

First go online and make a comprehensive survey of what you owe, and to whom. All your credit card balances should be available online through the company website or app. Second, take a deep breath, count to ten, and let it out. Let the sticker shock subside. Third, make a prioritized list.  Whatever cards have the highest rates need the most attention. Target those debts for first payment accordingly, and so on and so forth. Fourth, and most important, stop spending for a while. The holidays take a big bite out of everybody’s wallet and many of us need a recovery period before we’re financially healthy again.

Debt consolidation services may be the right answer for some. There are many such companies and some of them offer good deals. However, you should proceed with great caution. There are oftentimes various catches and conditions that could leave you worse off than when you started. Remember that robbing Peter to pay Paul is no solution to the long-term problem.

It’s psychologically tempting to ignore the problem. Christmas is a time for giving after all, those presents were ‘necessary’ expenses, right? But the truth is that it doesn’t matter. Whether they were necessary or not you still owe. And if you didn’t budget when you shopped then the above triage procedure is something you need to do.
Remember that interest accrues every month. The longer you put off dealing with this unpleasant but necessary task the worse it becomes when you’re eventually forced to take care of it. Putting your entertainment plans on the shelf for a few months, or even taking a few extra shifts at work, may not be a fun idea but it will give you the infusion of cash you need. Everyone overspends from time to time, the real question is this; are you prepared to take responsibility and deal with it when the debt comes due?