Post-holiday financial hacks to help with leftover debt

ABC News' Rebecca Jarvis shares tips to help American shoppers get their wallets back in shape after racking up debt over the holidays.
2:13 | 01/05/18

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Transcript for Post-holiday financial hacks to help with leftover debt
week of the new year, many Americans dealing with debt from holiday shopping. One stud day say shoppers average a thousand dhars this debt you were 5% from last year. Tips on how to pay those off. Good morning, yeah, so what we found out from the study is that on average people assumed more than a thousand dollars in debt over the holidays, it is a surprise -- it's a large number. Even more surprising are the 44% of Americans who took on even more, more than a thousand dollars and 5% who went into debt more than $5,000 in debt over the holidays. The danger is when you don't pay it back right way. If you don't pay it back right away it gets bigger and bigger. 19% of the people in this survey say they'll pay it back within a month. 0% say they'll pay it back over five months but here's the big concern, 10% of those people say they are only making the minimum payment on those credit cards. Explain what happens then over the long term. If you look over the long term, if you're only making those minimum payments, George, on that $1,000 in debt you assumed this Christmas, you're going to be paying back that debt for many, many christmases to come. In fact, if you're only making that minimum payment of $25 a month you will have the balance paid off not until 2023 and you'll rack up additional fees of $500 because you're not paying it off. Credit cards, when you take on credit carddebt, it is some of the worst debt in terms of getting more into debt because of how high that apr is. You is to be disciplined. You have to be very disciplined. There are some things meme can do. One thing people can do is negotiate with a credit card company so if you are up to date. If you're paying your bills on time talk to your credit card company about giving you a lower interest rate and what's really important this time of year is to look at that budget and finally a number of great financial apps. We have one called free and costs 99 cents to download it but you see here we entered in a number of different debts here so you can see exactly what you owe on all of your different credit cards, these are reports that will show you exactly how much debt you have on each card and finally how long it'll take to you pay it down. If you track it more likely you'll pay it back. You better. Rebecca, thanks very much.

This transcript has been automatically generated and may not be 100% accurate.

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