Refinance Mortgage Home Loans Refi

Fortunately, fewer people used credit cards as their preferred payment method last year than the year before, said Mrs. Stocki.

"From what we can tell, people are using cash and check cards more, which is a good sign," added Rob Saunders, a certified public accountant with Cunningham and Saunders in Blakely and a member of the Pennsylvania Institute of Certified Public Accountants.

National studies show last year was the year for more green and less plastic. According to the National Retail Federation's 2009 Holiday Consumer Intentions and Actions Survey conducted by BIGresearch, nearly four out of 10 (39.3 percent) used their debit or check cards most often. Fewer people, 30.9 percent, used credit cards in 2009 compared to 33.8 percent in 2008. More than one-quarter, 26 percent, have used cash and only 3.8 percent relied on checks.

"As expected, shoppers have shown tremendous restraint in buying gifts with the money they already have, not the money they hope to have," said Phil Rist, executive vice president, Strategic Initiatives, BIGresearch, a consumer market intelligence firm.

Relying less on credit for holiday purchases made consumers feel "more comfortable about their personal finances again and may make them more willing to spend in the future," he said.

Although the survey showed fewer people used credit cards as their preferred payment this past holiday season, a 3.5 percent spike in retail sales has undoubtedly led to consumer debt, according to the Pennsylvania Institute of CPAs.

Meanwhile, charge-offs, loans a credit card company doesn't think it will collect, rose again in December, and cardholder payments slowed dramatically, according to global rating agency Fitch Ratings' latest credit card index.

For people who have racked up credit card bills over the holiday season and are now trying to manage their debt in 2010, Mr. Saunders recommended the first thing to do is "put yourself on a budget."

"The hard part about a budget is sitting down and doing it," he said. "Once you understand your cash flow, you really get a sense of cutting out discretionary things like going out to dinner and binge shopping. The biggest things we tell people when they put their budget together is to look for ways they can save and put that toward their credit card debt."

Mr. Saunders recommends when going shopping, leave the credit cards at home and pay with cash or check cards instead. Both Mr. Saunders and Mrs. Stocki suggest paying bills on time and avoid making just the minimum payments on credit card bills.

Contact the writer: dallabaugh@citizensvoice.com Managing credit card debt

Consumer Credit Counseling Service of Northeastern Pennsylvania offered these tips on managing credit card debt:

- Pay bills on time. The best way to build credit is to pay your bills on time.

- Avoid making just the minimum payment. Try to pay more. The more you pay, the faster you will pay off the debt, and you will save money in interest.

- Keep your balances low, no more than 30 percent of your limit. The higher your balance is, the more of a risk you are to the credit card companies.

- Avoid opening new credit cards.

- Avoid hopping from one credit card to another.

- If you miss a payment, get current and stay current.

- Stay in touch with your creditors. Call them to try to work out other payment arrangements.

- Going forward, only charge what you know you can afford to pay off in full every month.

- Check your credit report regularly for errors.

- Don't be afraid to call for help. If you are struggling with credit card debt, call a reputable credit counseling agency. Consumer Credit Counseling Service of Northeastern Pennsylvania can assist you with free budget counseling and a low-cost debt management program to help you get credit card debt under control. Call 800-922-9537 to schedule a free consultation.