Pay Down, Not Pile Up: Tips to Tackle Credit Card Debt Before the Holidays

COLUMBUS, Ohio- With summer shopping, projects and vacations in the rearview mirror, Ohioans may be looking to get their budgets back on track ahead of the fast-approaching holiday season. For those who may have overspent, the Ohio Department of Commerce Division of Financial Institutionsis offering tips to help consumers manage credit card debt before the season of giving - and spending - begins.

According to a recent reporton household debt and credit released last month by the Federal Reserve Bank of New York, credit card balances rose by $27 billion during the second quarter of 2025 and now total $1.21 trillion outstanding. That's an increase of nearly 5.9% from last year. Meanwhile, a surveyconducted by the National Foundation for Credit Counseling found that 13% of Americans made less than the minimum required payment on their credit cards at some point over the past six months, which is up from 8% earlier this year.

Even though the holidays are now less than 100 days away, Division Superintendent Kevin Allard says there's still time for Ohioans to make positive strides toward getting their finances back on track, especially since lendingtree.comfound that 36% of Americans took on holiday debt in 2024.

"The last thing you want to do is keep piling on debt; the more debt you reduce now means less debt you'll need to address later. Credit cards are an important and helpful tool in our daily lives, but there are always efforts you can undertake to ensure your debt level does not get beyond your means to handle," Allard said. "Taking action now can help ensure you are able to enjoy the upcoming holiday season without radically adjusting your plans."

To help consumers manage any credit card debt they have accrued, the Division suggests the following tips:

• Create a Budget:The first step is to understand where your money is going. Use a simple worksheet or app to track your income and expenses. This will help you identify areas where you can cut back on spending and redirect funds toward paying down debt.
• Contact Your Creditors:If you are struggling to make payments, contact your credit card companies directly. Many offer hardship programs that can temporarily reduce interest rates, waive fees, or create a more manageable payment plan.

• Choose a Payoff Strategy:Explore different debt reduction strategies, focusing on tackling either the smallest balances first or highest interest rates respectively.
• Beware of Scams:Be cautious of companies that promise to eliminate your debt for an upfront fee. Legitimate credit counseling organizations do not make such guarantees. Never provide personal financial information to unsolicited callers. You can often find nonprofit credit counseling services through credit unions, universities, or organizations like the NFCC.

The Division also has some simple toolsavailable on its website that Ohio consumers can use to reduce debt and improve their credit scores so they can head into the holiday season with greater financial confidence and peace of mind.

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About the Ohio Division of Financial Institutions
The Division of Financial Institutions is part of the Ohio Department of Commerce. The department is Ohio's chief regulatory agency, focused on promoting prosperity and protecting what matters most to Ohioans. We ensure businesses follow the laws that help them create jobs and keep Ohioans safe. To learn more about what we do, visit our website at https://www.com.ohio.gov.