Charge it – after the fun!

The bills from Christmas are still rolling in and you had no idea that you spent as much as you did.  How are you going to deal with them?

You need a plan.

Get them organized and make a note of the payment dates.  You must make sure you pay the minimum payment on time.  If you do not this will effect your credit rating. Paying even 30 days late, or having your account sent to a collection agency has a very negative impact on your credit score. Making the minimun will keep you credit score consistent but it will not help you pay off the balance.

Try not to run your balances up to your credit limit.  Keeping your account balances below 75% of your available credit may also help your score.  If you are in the top 25% of the lending limit you need to try to get it down as soon as possible.

Prioritize the bills, using the snowball effect will help you pay them off faster.

This is also a really good time to look at refinancing and rolling all the debts into the mortgage but if you do this you must have a plan so you will not be doing it every year.