As the new year begins, many in New York are looking back at the holidays, trying to determine how much they spent on gifts for themselves and loved ones. Thanks to the amount that people spent, credit card debt saw a national increase of $5.6 billion. Statistics show that this is the largest increase since March 2008.

Many have spent the past few years recovering from the recession, shedding debt as best as they can in order to avoid collection agencies and a bad credit rating. But with an increase in consumer spending such as this, some experts are beginning to worry that many will have trouble managing their debts, prompting the need for some suggestions on how to make credit card debt more manageable.

One should begin by accounting for all of the debts he or she has. Creating a sheet that lists them and the interest rates attached can be helpful for those struggling to realize how much debt they are in. Next, a budget should be created so that to know how much one can afford to pay on that debt.

A repayment plan is the next step. Be sure to pay down credit cards that have the highest interest rates first because these will be the costliest in the long run. It may feel good to pay off the lowest debts first, but if there are others with higher interest rates, be sure to prioritize them.

Do not use your credit cards while you are attempting to shed debt. If you have to use them, only do so if you can pay off the amount within 90 days.

In order to stay in line with a budget, be sure to examine expenses weekly. Take an hour or so during the morning to look back on the week and see how much was spent. Those attempting debt repayment, in order to be successful, should be diligent about their finances.

Source: 9News.com, "Ways to avoid drowning in debt in the new year," Jeffrey Wolf, Jan. 10, 2012