The holidays are a season of joy — full of family gatherings, festive meals, shopping, and celebrations. But amid the excitement, it’s easy to get swept up in the moment and spend more than planned.
Many people turn to credit cards or store credit to cover holiday expenses. In 2024, according to LendingTree, 36% of Americans took on an average of $1,181 in holiday debt, and 42% of that debt carried interest rates of 20% or higher. That means those “just one more gift” purchases can linger long after the decorations come down.
The stress of post-holiday debt can be overwhelming. Many people regret how much they spent and find themselves paying for the holidays months later — with interest piling on top. This often creates a frustrating cycle: paying off balances just in time to take on new ones.
And when you’re still paying for the past, it becomes harder to invest in your future goals.
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Plan Ahead — Even If It’s Late in the Game
It’s easy to swipe your card without thinking through how you’ll pay it off later. Ideally, holiday planning starts in January — setting aside a little each month throughout the year.
But if you haven’t started yet, don’t panic. It’s never too late to make a plan.
Start by creating a realistic holiday budget. List everything you’ll need — gifts, food, decorations, travel — and assign a dollar amount to each. Seeing it all laid out helps you stay focused and avoid impulse purchases.
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Smart Spending Strategies
- Use cash when possible. Physically handing over money makes spending more mindful.
- Set spending limits. Know how much you can afford overall and per person.
- Shop with intention. Keep your list handy and stick to it.
- Take advantage of sales. Spreading out purchases and watching for deals can ease the financial strain.
- Cut back creatively. Lower-cost traditions or meaningful handmade gifts can bring more joy than expensive ones.
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Keep Perspective
The holidays are meant to be about joy, connection, and time with loved ones — not financial stress. Be realistic about what you can afford and remember: it’s okay to say no to activities or expenses that stretch your budget too far.
With a thoughtful plan and mindful spending, you can enjoy the season fully — without the financial hangover in the new year.
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Start Preparing for a Stress-Free Holiday Next Year
If this holiday season has you feeling stretched, now’s the perfect time to take control.
Come January, start setting aside a small amount each month for next year’s holiday spending. Even $25 or $50 a month adds up over time — helping you avoid the need for credit cards when the holidays roll around again.
And if you’re already carrying some holiday debt, don’t worry — you’re not alone, and there’s a way out. With a clear plan, consistent payments, and the right guidance, you can break the cycle for good.
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Ready to start your Christmas savings plan or finally get a handle on debt?
Let’s build a financial strategy that fits your goals — and brings you peace of mind all year long.
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