Managing 'Santa Shock' as Holiday Bills Hit Ohio Mailboxes

COLUMBUS, Ohio - As Ohioans await credit card bills from the recent holiday season, the Ohio Department of Commerce Division of Financial Institutions (DFI) is sharing tips to help consumers work through any post-holiday financial headaches, whether it's managing surprisingly large invoices or dealing with potentially stolen credit cards.

The National Retail Federation reported late last year that sales during the 2024 holiday season were expected to reach a new record. At the same time, according to a survey conducted by LendingTree, 36% of American consumers were expected to incur holiday debt with an average balance of $1,181, which is up from $1,028 in 2023.

DFI Superintendent Kevin Allard says the combination of spending more and going into debt can lead to an increased risk of carrying balances into the next holiday season, which can cause even greater financial pressure for consumers.

"Although they're quite common in January, larger-than-expected bills after the holidays can seem overwhelming and, at times, insurmountable," Allard said. "It's important for consumers to take a breath and realize there are steps they can take to address this financial challenge in the short term so their overall long-term financial outlook isn't negatively impacted."

To help manage holiday debt, Ohioans may consider taking the following steps if they receive a large bill:

• Negotiate a lower interest rate - Contact your creditors and emphasize your history of on-time payments or cite competitive offers from other companies. A single phone call could result in significant savings.
• Consider participating in a no-spend month - Offset holiday expenses by challenging yourself to limit spending to only necessities like housing, transportation, and groceries for an entire month.
• Create a debt payoff plan - Don't panic if you are unable to pay off all your holiday spending immediately. Instead, develop a realistic plan that will allow you to pay it off as soon as possible. Just as important, make sure to stick to this plan.

When you receive your credit card bills in the mail, don't focus on just the amount you owe. Instead, review each expense to ensure there isn't anything out of the ordinary that may have driven up your bill up any higher than it should be.

According to Experian, credit card fraud remains a significant issue, with over 214,000 cases reported in the first half of 2024. If you believe your credit or debit card might have been compromised during the holiday season, DFI recommends taking the following steps:

• Cancel your card - Contact your card issuer or bank immediately to cancel the card and request a replacement. For debit cards, make sure to also update your PIN.
• Monitor your accounts - Regularly check statements and online activity for unauthorized transactions. If you notice any disputes or suspicious charges, report them immediately.
• Change passwords - Update your passwords for any accounts that may have been compromised, and also be sure to update your login credentials. Consider freezing your credit to prevent unauthorized new accounts from being created.
• Report the issue - Report stolen information to the Federal Trade Commission at identitytheft.gov for additional support.

"We want Ohioans to feel empowered to take control of their financial future," Allard said. "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."

For more information and resources on financial health, fraud prevention, and credit improvement, visit DFI's website.

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Rob Rutkowski (rut-KOW-skee), Deputy Superintendent, Division of Financial Institutions, Ohio Department of Commerce
SOT 1 (:03 - :36) - Ways individuals can manage a high credit card bill.
SOT 2 (:36 - :44) - What to do if your credit card has been stolen.
SOT 3 (:45 - :55) - How to have a block put on your credit card.

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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 www.com.ohio.gov.

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