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 Institutions is offering tips to help consumers manage credit card debt before the season of giving and spending begins.
According to a recent report on 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 — an increase of nearly 5.9% from last year.
Meanwhile, a survey conducted 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, 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 improving their financial situation, especially since LendingTree found 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,” Allard said. “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. 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 the highest interest rates.
- 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. Nonprofit credit counseling services can often be found through credit unions, universities or organizations like the National Foundation for Credit Counseling (NFCC).
(Information provided by the Ohio Department of Commerce Division of Financial Institutions)
