Credit-card debt in the U.S. hit another record after an unusually-high increase following the holidays.
Debt from credit cards reached $1.21 trillion in the quarter ending in December after growing around $45 billion from the previous quarter, the Federal Reserve Bank of New York said Thursday.
"We saw a larger-than-usual pop this holiday season," said Ted Rossman, senior industry analyst at Bankrate.
Credit card balances almost always rise from year to year, but usually balances fall in the beginning of the year since Americans are detoxing from holiday spending and use tax returns to pay down debt, Rossman said.
He said it is critical to pay down debt as quickly and cost-effectively as possible.
"My favorite payoff tip is to sign up for a 0% balance transfer card," Rossman said. "These allow your to transfer your high-cost debt and avoid interest for up to 21 months."