by Joseph Kenny | 02/14/08

Retail experts say plastic will play a key role during this year's holiday shopping season.  The National Retail Federation predicts that sales during the weeks leading up to Christmas will top $475 billion, and much of those sales will be posted on credit accounts.

Credit card debt has become huge in this country.  CardTrak.com estimates that the average credit card debt per household in America is more than $9,500.  The amount of credit card debt has crept upward since the beginning of the '90s. 

For those who owe a substantial sum in credit card bills, there is hope this holiday season.  For one thing, you can call up your credit card companies and ask if they will give you a lower interest rate.  If the customer service representative on the line cannot assist you, experts recommend speaking to a supervisor.  Because credit card companies are in intense competition for business, many are willing to offer lower interest rates to faithful customers in an attempt to keep their business.   Some credit card issuers go so far as to issue invitations asking consumers to call in an attempt to negotiate a lower interest rate.

Once you manage to secure a lower rate on one card, vow to limit your shopping to just that one card throughout the holiday season.  That way, you can reduce not only costly interest charges, but other expensive fees.

Another smart strategy is to take advantage of 0% balance transfer offers.  These can help you to save big money in the short run - money that you can use to pay off credit card debt.  Keep in mind, however, that you will probably be asked to pay a special fee to accommodate your balance transfer.

Experts say it's also a good idea during the shopping season to keep to a spending plan - even if you plan to make many of your purchases using credit cards.  That budget can help you to avoid sky-high credit card bills in January, when money may already be tight.

If possible, try to pay off your credit card balance at the end of each month.  While such a practice may put a crimp in your spending style, it could help to save you a great deal of money in the long run.