Credit Card Debts Coming Due From Increased Holiday Spending

Although 2010 and the years prior saw a decline in consumer spending during the holidays, this year's holiday shopping season seemed to put an end to that trend. Consumers were enticed by offers they couldn't refuse, both in stores and online.

While shoppers may have felt these deals were just too good to pass up, the extra spending may have led many to go over budget. As the holiday season comes to a close and the credit card bills begin to come due, many consumers may decide to seek the assistance of a Chicago credit card debt attorney.

It All Started on Black Friday

Many stores opened earlier than usual this year, some opening Thursday evening instead of Friday morning. Before many people had a chance to digest their turkey and stuffing they were getting in line to try and capitalize on those killer offers on TVs, toys or other gifts.

This year there was also an increase in online offers; so many people did not even have to leave the house to take advantage of deep discounts.

Between the online availability and earlier store hours, these too-good-to-be-true deals became hard to pass up, and many consumers ultimately ended up overextending themselves by relying more on credit cards.

The Post-Holiday Blues

When shopping for loved ones, people sometimes are more concerned about finding that perfect gift than they are about paying for that gift. One rule of thumb when using credit cards is to try and keep the expenses to a point where it can all be paid off when the bill comes due, or at least within the first three months after the holiday season. Unfortunately, the spending and credit card debt of many consumers this holiday season will exceed this recommendation.

People that overextend themselves, and face bills they cannot pay off in one to three months after the holidays, can quickly find themselves in financial trouble. Paying increasing amounts of interests can make it hard for consumers to dig out of debt. Additionally, carrying high balances on credit cards lowers credit scores leading to possible higher interest rates for future borrowing. Consumers that find it hard to keep up may miss a credit card payment, which can further damage credit scores, and may affect future attempts to borrow money for such things as auto loans and mortgages.

Getting Out of Credit Card Debt

Bankruptcy provides one option for those buried in credit card debt. Under a Chapter 7 bankruptcy credit card debt may be eliminated, and under a Chapter 13 bankruptcy your debts will be consolidated in to a manageable monthly payment.

Consult with an experienced Chicago bankruptcy attorney to discuss the best option for your unique situation.