Credit card debt, terms limit holiday spending

The holiday season has always been a time to lavish her family with gifts — regardless of whether there was money to pay for it.

“If there was no money the card came out,” “Anything that was on the list, so to speak, would be purchased, whether or not we could afford it. We always had plastic.”

This year, things are different: Fed up with rising fees and determined to pay off her debt from years past, Getz has cut up her credit cards. That means she’ll be spending less on Christmas presents for her kids and grandkids this year and thinking more about the spiritual side of the holiday season. “It’s still going to be Christmas, but we’re not going to be overburdened with credit card debt or any other type of debt,"

Click here to know more about Credit Card and Apply  Barclays credit card and Kotak mahindra Credit Card

As holiday season shoppers struggle with a difficult economy, one of the big issues many face is onerous credit card bills left over from years past, when credit was generally easier to come by and cheaper to maintain.

In response, consumers are cutting back on spending and paying with cash instead of credit. Many say they are frustrated by changes in credit card fees, limits and interest rates stemming from the financial crisis that have made it more expensive to finance the holidays with plastic.

The reduction in debt is probably an outgrowth of rising unemployment, which limits spending, and a reduced availabilty of credit.

Many consumers also are working hard to get their balance sheets in order, following years in which debt for some spiraled out of control.

Some 6 percent of consumers, or 13.5 million people, are still carrying debt from last year’s holiday season, according to Consumer Reports.

A potential reduced reliance on credit cards would add another headwind for retailers, who depend on the holiday season for a large chunk of profits but are facing another year of potentially sluggish sales.

‘It has affected my Christmas spending’
Over the past year Leo Corona has seen the interest rate on both his credit cards raised, and one card company has lowered his credit limit.

“It has affected my Christmas spending because if I wanted to use the option of (credit cards) I know I’m going to be bogged down with a higher payment and a higher interest rate,” Corona said. “So naturally, I’m going to spend less.”