As Ohioans are waiting for their credit card bills from the recent holiday season, the Ohio Department of Commerce Division of Financial Institutions (DFI) is sharing some helpful tips for consumers working through any post-holiday financial headaches.
The National Retail Federation reported that sales during the 2024 holiday season were expected to reach a new record. According to a survey managed by LendingTree, 36% of American consumers were expected to experience holiday debt with an average balance of $1,181, which is up from $1,028 in 2023.
DFI Superintendent Kevin Allard says that the combination of spending more and building that debt can lead to an increased risk of greater financial pressure for consumers into the next holiday season.
"Although they're quite common in January, larger-than-expected bills after the holidays can seem overwhelming and, at times, insurmountable," Allard said.
Allard added that consumers should take a break and realize there are steps they can take to address this challenge sooner rather than later and avoid negatively impacting their financial outlook.
Ohioans may consider taking the following steps to help manage a large bill:
- Negotiate a lower interest rate - Contact your creditors with a single phone call and highlight your history of on-time payments or cite competitive offers from other companies.
- Consider participating in a no-spend month - Challenge yourself to limit spending to necessities like housing, transportation, and groceries only for an entire month.
- Create a debt playoff plan - Don't panic if you are unable to pay all of your holiday spending right away. Instead, develop a realistic plan that will allow you to pay it off as soon as possible.
According to Experian, over 214,000 cases of credit card fraud were reported in the first half of 2024. If during the holiday season you believe your credit or debit card might have been compromised, DFI recommends to take the following steps:
- Cancel your card - Contact your bank or card issuer immediately to cancel and request a replacement. Update your pin for debit cards.
- Monitor your accounts - Regularly check statements and online activity for any suspicious charges. If you notice an unauthorized transaction, report them immediately.
- Change passwords - For any accounts that may have been compromised, update your login credentials and consider freezing your credit to prevent any new accounts from being created.
- Report the issue - Report stolen information to the Federal Trade Commission at identifytheft.gov for additional support.
"We want Ohioans to feel empowered to take control of their financial future. 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," Allard said
You can visit DFI's website for more information and resources on financial health, fraud prevention, and credit improvement.