How to Enjoy the Holidays While Managing Debt
At a Glance:
The holidays should be a source of joy, not a cause of financial stress. However, for millions of Americans in debt, this season often feels like a minefield of spending pressure and growing bills.
By creating a clear plan and setting realistic expectations, you’ll be able to enjoy the holidays while keeping your debt managed. This approach can bring relief and a sense of control to your financial situation.
Holiday spending continues to climb each year. Americans who took on debt during the 2024 holiday season accumulated an average of $1,181, up from $1,028 in 2023.[1]
Even more concerning is how long this debt sticks around. Nearly one-third of people who used credit cards for their 2024 holiday purchases still have not paid off those balances.[2] This can lead to high-interest charges and a negative impact on your credit score. Some gift buyers carry credit card debt from multiple years of holiday shopping, which can significantly increase the total amount owed.
The pattern is clear. One season of overspending can create a cycle of debt that lasts well into the following year. That puts you at a financial disadvantage already, before the next holiday season even begins.
The pressure to spend during the holidays is real. More than half of holiday shoppers say the costs associated with holiday spending stress them out.[2] Yet, 15% of holiday shoppers admit they will likely spend more on gifts than they can afford comfortably.[2]
Think about the expectations you face this time of year. Family gatherings. Gift exchanges. Travel costs. Decorations. Special meals. The list goes on.
What happens when your budget runs out, but the shopping list remains? Many people turn to credit cards as a quick solution, without a clear plan on how they’re going to pay them off. Others use buy-now-pay-later services that can quickly accumulate. Before you know it, you are starting the new year already behind.
One of the biggest traps is feeling like you have to buy something for everyone. That expectation is not realistic, especially when you are managing debt.
Here is what you can do instead.
Make a priority gift list before you start shopping. Write down the names of people you genuinely want to give gifts to. Then set a dollar amount you can actually afford to spend on each person. Having an established plan makes it less likely for impulse purchases. You will not grab last-minute gifts at full price because you forgot someone. You will not rack up credit card charges that haunt you in January.
Be honest about what you can afford. Your loved ones care more about your presence than your presents. If someone expects an expensive gift when you are managing debt, that is their problem to deal with, not yours. Set realistic expectations for your holiday spending by limiting the number of gifts you buy or opting for less expensive options.
When working to pay down debt, consistency is crucial. The worst thing you can do is blow up your budget during the holidays and lose the progress you have made all year.
Treat December like any other month. Pay your required monthly expenses first. That includes your regular debt payments, rent or mortgage, utilities, and groceries.
Once those essentials are covered, you will know exactly how much money is left for holiday spending. That is your real holiday budget.
This approach keeps you on track financially. It also gives you peace of mind because every dollar you spend on celebrations is a dollar you actually have. You can enjoy the moment without worrying about the bill coming due.
If your monthly debt payments are eating up most of your budget, you may need a different approach.
A debt relief program can lower your monthly payment immediately. That frees up cash you can use for actual living expenses instead of just paying interest to credit card companies.
With American Credit Card Solutions, you can request a Custom Debt Relief Plan designed for your specific situation. You will work with debt specialists who understand what you are going through and can help you find a path forward.
Lower monthly payments mean less financial pressure during the holidays. With a Custom Debt Relief Plan, you can reduce your total debt, lower your interest rates, and make one affordable monthly payment. This will give you breathing room in your budget without taking on new debt.
The holiday season provides an opportunity to focus on what truly brings joy. Spoiler alert: it is not the gifts.
Spend time with people you care about. Have conversations. Play games. Make meals together. Go for walks. Watch movies. Volunteer in your community.
These activities cost little to nothing. They also create memories that last longer than any purchased gift.
When you strip away the commercial pressure, the holidays are more enjoyable than when you were stressed about spending. You can actually be present with the people around you instead of worrying about credit card bills.
Setting realistic expectations for the holiday season can be empowering, making you feel confident and in control of your financial situation.
Many families want to spend less on gifts, but no one wants to be the first to suggest it. Be the brave one who starts that conversation. You might be surprised how relieved your family members feel when someone finally says it out loud.
Suggesting alternatives to traditional gift exchanges can foster a sense of community and shared experience, making your family members feel understood and connected.
The holidays can be whatever you want them to be. You get to decide what traditions serve your family and which ones create stress. If money is a source of stress, choose to make your holidays about celebrating time with those around you rather than what gifts can be purchased.
If you are reading this while already feeling overwhelmed by holiday debt, start planning for next year now.
Open a separate savings account just for holiday expenses. Starting in January, put a small amount in that account each month. Even $25 or $50 per month adds up over the course of a year.
When the holidays roll around again, you will have cash set aside just for holiday spending. You will not need to rely on credit cards, and won’t have to panic about how to pay for gifts.
Planning ahead breaks the cycle of relying on credit cards to fund holiday spending. You stop borrowing from your future self and start funding your holidays with money you already have.
Key Takeaways
Managing debt during the holidays is hard. If you are struggling to make your minimum payments or your debt feels overwhelming, professional help is available.
American Credit Card Solutions specializes in helping people get out of debt faster. Their debt specialists can review your situation and create a Custom Debt Relief Plan that helps you achieve debt freedom.
You will receive an immediate lower monthly payment, providing you with financial relief right away. That means you can start rebuilding your financial stability while continuing to manage your daily expenses.
The holidays do not have to mean more debt. With the right support and a clear plan, you can enjoy this season without sacrificing your financial future.
Request your Custom Debt Relief Plan today and take the first step toward a debt-free life.
[1] LendingTree. “149 Holiday Spending Statistics, From Valentine’s Day to New Year’s Eve.” https://www.lendingtree.com/debt-consolidation/holiday-spending-statistics/
[2] NerdWallet. “2025 Holiday Spending Report.” https://www.nerdwallet.com/article/studies/holiday-spending-report
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