Picking up the perfect gifts for friends and family — then feeding and entertaining them during the holiday season — can often mean dealing with tough credit card debt after all the bells have rung.

Veteran credit counselor Al Antle says he sees this problem too often this time of year.

“The reality is that people are more dependent on credit than ever before, and we went crazy in December,” said Antle, managing director of Credit Counseling Services of Newfoundland and Labrador.

If the aftermath of Christmas is giving you headaches and bills that seem insurmountable, Antle has three tips and suggestions for improving this stressful financial situation.

1. Know that you are not alone

Antle said debt is a reality many people face at this time of year. Often, the size of this debt can surprise people who are racking up the bills.

“We see people all the time who just have no idea how much they spent on Christmas,” he said.

According to Antle, Canadians collectively owe more than $1.70 for every dollar they earn.

In December alone, his company opened 38 new cases. It’s a myth, he says, that the poor need credit counseling the most.

“Thirty-two of them had incomes over $50,000 a year,” he said.

“It says a lot about the fact that Canadians, and Newfoundlanders by extension, are the most indebted people on the planet.”

2. Don’t Panic

Antle said he recommends taking a deep breath and properly weighing your options once the bills start rolling in.

“One of our concerns would be that they run away and declare bankruptcy because they feel there is no way around the problem,” he said.

“I think the first thing you need to do is stop. You need to take a day or two and just relax.”

While it may seem appealing to consolidate your credit or ask your bank for help, Antle said the bank may not have your best interests in mind. He said that while consolidation loans are “good ideas”, they are “not for everyone”.

“When you go to your bank and say, ‘Consolidate all my debt,’ the bank is going to say yes. Because the banks just got rich from your decision,” he said.

“What we’re suggesting is that you reach out for unbiased help, such as credit counseling or another source of financial information that can help you make a decision.”

3. Open the piggy bank

Do you have a piggy bank? Get a proverbial hammer.

Antle said if you have savings, liquidating them may be your best option.

“Give up on short-term savings. A lot of people are really stressed because their savings [are] limited or even non-existent. It’s a valid concern,” he said.

“But you know, if you have access to an asset that will earn you money, like a savings account, liquidate that savings account.”

4. Tackle the good debts

Antle said correct debt repayment is also crucial. While large debts may seem like the right thing to pay off, smaller debts can accrue interest that can be more detrimental to your finances.

“Credit cards in particular, you know, department store type credit cards, are the most expensive form of debt you can have. Interest rates on these things are in the mid-twenties. 22, 24, 26%,” he said.

“So you want to get rid of your most expensive debt first. And for some people that might not be the biggest debt you have. So people look at me all the time and say, ‘ What do you mean? dry. Are you telling me I have to get rid of my $2,200 account at an ABC department store when I have $10,000 on a line of credit? »

He said the smaller department store account would cost the consumer more in accrued interest.

“It’s what pulls you down, what’s likely to catch you up for the longest time.”

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