A financial counselor provides information on how people can avoid slipping into credit card debt.
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TRAVERSE CITY -- It can be easy to fall into debt with the holiday shopping season right around the corner especially with credit cards. Plus, what if you're still paying on credit from last year?
"What would be the best way to save money and yet still make Christmas happen for a family and not end up in debt?" asks Traverse City resident, Caitlin Lewis.
"How do I consolidate all of my bills onto one credit card so I can only have one payment?" asks Grayling resident Darnell Wilson.
These are common questions that many people may have, especially with the approaching holiday shopping season that could lead to credit card debt.
Financial counselor with Green Path Debt Solutions in Traverse City, Matt Tarsney says there are ways to avoid this.
"What we see a lot of people doing is just taking another credit card and running that one up too, that's not the ideal situation, the ideal situation would be to start planning basically a year ago," says Tarsney.
For those who may not have planned ahead, Tarsney says there's still financial hope.
"Start now with what can I afford for Christmas without having to take out more debt. If you can save 100 dollars now and then in early November and early December that's 300 dollars," says Tarsney.
Tarsney says the most important thing people can do is maintain their minimum credit card payments and even figure out a shopping budget.
"If you don't make that minimum payment your credit card could possibly report you as late, added fees and things so that doesn't help," says Tarsney.
"If you have a maxed out credit card and you open another one, does that effect your credit score?" asks 7&4 News.
"It can effect your credit score because it's new debt. If you take out a new credit card today and go run it up in a month it's brand new debt," says Tarsney.
Tarsney also recommends taking advantaging of what your bank offers when it comes to avoiding getting caught "debt-handed."
"Most banks have Christmas club accounts that you can set up were you can put a little bit of your pay check in there, so come time for Christmas you've got a little savings account so to speak saved up for, that you're not using credit cards," says Tarsney.
Tarsney stresses that it's not a bad thing to use your credit card, as long as you stay on top of the payments.
If you know you can't make a payment, he says it's best to contact your credit card company to figure out a new payment plan.
