While the holidays are officially over, the joy of the season will soon be replaced by the stress of paying off holiday debt.

“It is easy to get caught up in the excitement of giving during the holidays,” said Richard Schram, regional president for CredAbility. “But many people overdo and then struggle to make even minimum payments on their credit cards.”

CredAbility advises consumers to top their list of New Year’s resolutions with a commitment to improve their financial outlook. To help tackle what can be a stressful time, CredAbility recommends consumers give themselves the right gifts that can help them get and stay on financial track:

1. Financial knowledge. Know how much you owe. A common mistake is not keeping track of debt. The thinking is that as long as you can keep up with the payments, everything is fine. However, if circumstances change due to a layoff or other unexpected event, you could find yourself unable to make payments and in immediate financial stress. The only way to understand what you are facing is to have a realistic picture of what you owe. Gather all your credit card statements and other bills and add up the total.

2. A sound spending plan. The easiest way to take control of your money is to set out a plan for how you will spend it. This is not glamorous and can be something of a task, but it gives you the power to decide where your money goes. The plan should be flexible and include monthly expenses such as mortgage or rent, utilities, food, transportation, entertainment, clothing, etc. Make sure your expenses are not more than your income. If they are, go back to the plan and make adjustments.

3. Being debt-free. Pay off credit card debt. The average cardholder will struggle with about $5,400 in credit card debt in 2012 (U.S. Census Bureau), and the interest paid on that balance can be $800 or more a year (based on 18% interest rate). This number increases per household when there is more than one cardholder in the house. Just think of what you could do with an extra $75-$150 a month in your budget! Stop charging additional purchases today and make a commitment to yourself that once you have paid off your debt, you will not charge any purchases unless you have a plan in place to pay off the balance in 90 days or less. Sacrifices now will mean less stress and a better financial future.

4. A savings cushion. Once you have paid off your credit card balances, you should begin to build a savings cushion for emergency or unexpected expenses or if you lose your job. Your goal is three to six months of living expenses put aside in a savings account. With this cushion in place, when the refrigerator stops working, your car’s transmission gives out or your mother-in-law moves in, you will not have to put those unexpected expenses on a credit card.

5. A long-term strategy for your financial future. Set aside time at least twice a month to manage your finances including paying bills, balancing your checking account and analyzing your expenses. Begin thinking about, and planning for retirement-consider when you would prefer to retire, how much money you will need to live the lifestyle of your choice and what you need to do now to get there. Establish a retirement fund and contribute to it on a regular basis.

Not sure where to start? If you are feeling overwhelmed, there is help. CredAbility provides confidential budget counseling, money management education, debt management programs and other services to help consumers. Contact CredAbility at 800-251-2227 or online at www.CredAbility.org.

About CredAbility

CredAbility is one of the leading nonprofit credit counseling and education agencies in the United States, serving clients in all 50 states plus the District of Columbia, Guam, Puerto Rico and the US Virgin Islands, in both English and Spanish. In addition, it provides in-person counseling through our branch network of more than 25 offices located across the southeast.

Founded in 1964, CredAbility is a family of Consumer Credit Counseling Service agencies that includes CCCS of Central Florida and the Florida Gulf Coast.