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Pay off that holiday credit card debt
The holidays are behind us now, but credit card bills are still ahead of us. The FOX 5 I-Team's Dana Fowle explains why you should make it your first priority to tackle that debt.
ATLANTA - Americans spent almost $1,200 on average for the holidays, with 36 percent saying they took on debt to do it.
A Lending Tree post-holiday study says that 60% of those who charged for gifts are now stressed out about it.
The FOX 5 I-Team's Dana Fowle says the goal for paying off holiday-incurred debt is three to four months.
Math breakdown
If you charged $1,181 for gifts, and you get paid twice a month, you will need to pay your credit card $196.83 per check to clear that debt in three months.
Ways to pay off holiday debt
- If you can, make payments before the due date and as frequently as you can.
- Transfer debt to a 0% interest credit card. But don't add new charges. The no-interest introductory offer is only for transfers, not new charges.
- Pay off that debt using the Avalanche Method. You pay off the highest interest card first.
- For others, the Snowball Method works best. Pay off the lowest balance card first. When that's done, go to the next low balance card.
The Source: Lending Tree posted its 2024 holiday spending findings on its website. The Snowball and Avalanche debt pay-down methods are standard practice in the finance industry.