OHIO — The holidays have come and gone, but what might remain is the high balance on your credit cards.
Late last year, the National Retail Federation estimated holiday sales to hit a new record. Additionally, a survey by LendingTree found 36% of Americans were expected to have holiday debt with an average of $1,191 — an increase from 2023 ($1,028).
Buying gifts can be hard enough as is, but having to manage the flow of bills after the holidays is a whole other chore. The Ohio Department of Commerce calls it "Santa Shock," and said Ohioans can find ways to help manage the financial stress.
“Although they’re quite common in January, larger-than-expected bills after the holidays can seem overwhelming and, at times, insurmountable,” said Ohio Department of Commerce Division of Financial Institutions (DFI) Superintendent Kevin Allard. “It’s important for consumers to take a breath and realize there are steps they can take to address this financial challenge in the short term so their overall long-term financial outlook isn’t negatively impacted.”
If a large bill hits your mailbox, the Ohio Department of Commerce encourages Ohioans to take these steps:
- Negotiate a lower interest rate by contacting creditors and emphasize your history of on-time payments or cite competitive offers from other companies
- Consider participating in a no-spend month
- Create a debt payoff plan
The Ohio Department of Commerce said not to just focus on the amount you owe, but instead review each expense to make sure there's not something out of the ordinary. Credit card fraud is prevalent in the beginning of the year. According to Experian, there were over 214,000 cases of credit card fraud in the first half of 2024.
For those who think their cards may have been compromised, take these steps:
- Cancel your card by contacting your issuer or bank immediately
- Update your debit card PIN
- Monitor your accounts and frequently check transactions
- Change passwords
- Report the issue
“We want Ohioans to feel empowered to take control of their financial future,” Allard said. “Whether it’s addressing holiday debt or protecting against fraud, taking a combination of both appropriate reactive and proactive steps can help you achieve greater financial stability.”