It’s a new year once again! Every January you get a fresh start. This is the time of year to put yourself to the test. So what is your New Year’s resolution this year? Whether you want to lose 15 pounds or to stop smoking, have you considered it might be so hard to stick to your resolution because of holiday debt? Are those holiday credit card bills pouring in on a daily basis tempting you to maybe light up a cigarette or eat a half gallon of ice cream resulting in another failed New Year’s resolution? Maybe your New Year’s resolution should be to avoid accumulating holiday credit card debt again this year.

Don’t let those holiday bills get out of control!

All of that holiday debt will not go away if you avoid opening your credit card statements. If anything, you should get ahead of the game by checking your bank and credit card accounts online before your bills even come. Don’t ignore your bills! You could incur late fees, which may cost you up to $40.00 and your interest rates could increase up to 30% annually. Avoid this by making sure you at least pay the minimum amount on each card and mail it out the same day it arrives if possible. Furthermore, be aware that your credit card companies watch how you pay your other credit cards. If your card company sees you are late paying on another credit card, they could increase your interest rate, so paying at least the minimum on all your accounts is paramount.

Stop using your credit cards!

By using cash, debit and checks (provided your checkbook is balanced), you won’t be adding to the problem of accumulating additional debt. If you can’t resist using plastic, try putting your cards in a lockbox. If that doesn’t work, a more creative approach is to freeze those cards in a block of ice so you can’t get to them, the thaw time may help control impulse buying.

Set a goal.

You need to set a realistic timeframe to eliminate your holiday debt. By paying off your cards with the highest interest rates first, you will pay less towards interest and eliminate that holiday debt faster.

Don’t let this happen again next year!

Start saving now for the next holiday season. Free up some money by cutting out expenses like Starbucks coffee; try watching TV instead of going out to the movies and bring your own lunch to work. You can use this money saved to start a Christmas club account by setting aside $25.00 to $100.00 each month so you don’t burden yourself with holiday debt next year.