JACKSONVILLE, Fla. – 2025 is here, and for some, it comes with the weight of last year’s credit card debt. LendingTree reported that 36% of Americans added debt during the holiday season, with 42% facing interest rates of 20% or higher.
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This financial hangover, as credit repair specialist Paul Oster called it, has become a yearly occurrence.
“Well unfortunately, we’ve seen the same hangover for the past 20 years,” Oster said. “They just simply overspend during the holidays. Remember every financial transaction is driven by emotion so during the holidays, those emotions are driven by an all-time high.”
If getting out of debt is on your to-do list this year, Oster suggests starting with a plan.
“Get a list together, put a household budget together. If you’re just starting with your debt, get a number. How much debt are you really in?” Oster said.
Once you have a handle on the total, Oster advises focusing on paying down balances. According to the Federal Reserve, 45% of households carry a credit card balance from month to month.
“Every dollar that you invest in paying down your credit card debt, it’s like getting a 29% return from your money,” Oster said. “So, there’s no other better investment. Put a three-month plan together, if you fall short, add another three months. If you fall short again add another three months, but at least you’re moving forward.”
For those who feel overwhelmed, experts suggest seeking help from a financial advisor or credit repair agency.
And remember, maintaining a good credit utilization ratio ideally around 30% or lower is crucial for improving your credit score.