If you are anything like me you have done two things this holiday season that may spell doom for you in 2008.  The first is you waited to the last minute to holiday shop and now have nothing but fruit cakes and Christmas Tree air fresheners to give to your loved ones as gifts this year (something they will certainly remember in 2008).  And second, you probably bought the offending fruit cakes and air fresheners on a credit card since you didn’t have the money to buy them in the first place.

According to a recent Associated Press analysis of credit card debt from October and November, the value of accounts at least 30 days late jumped 26% to $17.3 billion in October compared to a year earlier. And some of the nation’s biggest lenders report increases of 50% or more in the value of accounts that were at least 90 days delinquent when compared with the same period a year ago.

For most of us who relied on our favorite plastic shopping companion to fill out our Christmas lists this year that means record balances to look forward to in the New Year.  Record balances that due to mounting mortgage expenses, a weakening job market nationally and 2005 changes to the bankruptcy law (making it more difficult to eliminate consumer credit card debt), may make it almost impossible for consumers to keep on top of it in the months to come.

So what’s the average consumer with $1000’s in credit card debt to do in 2008?  Consider these five suggestions to get your debt under control in the New Year:

1. Stop Using the Cards - seems simple enough? Stop using the cards now and put a kibosh on accumulating more debt on top of the debt you couldn’t afford in the first place. Put the cards away, cut them up completely or make a promise to yourself that they will only be used again in the event of an emergency. And no, new shoes does not an emergency make.
2. Pay more then the minimum - Let’s say you are $5,000 in credit card debt with a 16% interest rate and a minimum monthly payment of $110. Did you know that just paying the minimum means it takes 25 years to pay off your debt and by the way, that $5000 debt ended up costing you $12,000 in total factoring in that extra $7,000 you just paid in interest. Yet DOUBLE your minimum payment to $210 and pay off the card in 28 months, saving you about $6,100 in interest.
3. Reduce your card interest rate - Per the AP article above, credit card companies are experiencing record levels of delinquency with their customers right now. Use that to your advantage and request a reduction in your monthly APR. If you have been a faithful cardholder for years now is the time to use that accumulated goodwill to get a 16-19% APR down to 11-14%.
4. Stick to a budget - If credit card payments aren’t part of a monthly budget in your house they should be. If you’re using credit cards to pay your monthly expenses then you need to take a hard look at your daily finances. Still getting those premium TV stations or eating out more then three times a month? Time to reevaluate where your money is going and what it means to your bottom line.
5. Consider a Debt Management Program - If you are over $5,000 in debt then a debt management program may be for you. A qualified accredited debt management company can negotiate directly with your creditors in a way you as a consumer never could. Consider this option if you have done all the above and still need help or if you feel at the end of your rope and are seriously considering bankruptcy.