What to Do If You Overdid the Holidays

Debt-counseling services say their caseloads jump in January, February and March as bills from December spending roll in. These suggestions from financial planners and the Consumer Credit Counseling Service of Los Angeles can help you prevent this year’s indulgence from becoming next year’s financial nightmare.

- Shop the holiday sales only if you will be able to pay off your credit card bills in January. If you’re carrying a balance, concentrate on paying down that debt before you add more.

- Put your credit cards away and switch to cash-only spending until the bills are paid off.

- Consider working more overtime or adding a second job to bring in more money.

- Trim expenses. Visit http://161.35.110.226/HOME/BUSINESS/PERFIN/ for ideas.

- Start saving now for next December. Putting aside $75 a month will give you more than $900, the typical amount Americans spend on holiday gifts and decorations. Wells Fargo Bank offers a holiday certificate of deposit that automatically transfers $50 or more from a Wells checking or savings account. Other banks, thrifts and credit unions offer holiday club accounts for regular saving.

- If you’re really in trouble, seek help from a nonprofit debt counselor in your community, such as Consumer Credit Counseling Service.

Some signs that you may be in over your head:

- You live paycheck to paycheck with no emergency savings.

- You’re constantly behind on your bills.

- You’re being contacted by creditors or debt-collection agencies.

- You borrow from one credit card or lender to pay another.

- Your non-mortgage consumer debt--credit card payments, auto loans and other installment debt--eats up 20% or more of your take-home pay.