A 5-Step Post-Holiday Debt Reset
The holidays are full of joy, gathering, and unfortunately, debt. Holiday debt is incredibly common, and the good news is you can absolutely take control of it.
With a few intentional steps, you can reduce that debt and regain financial control without completely overhauling your lifestyle. Here’s a smart, actionable plan to help you reset.
Get Everything Out In The Open
We know it might be intimidating to look at your debt, but avoidance causes debt to linger and stick around longer.
Start by listing:
- Credit cards
- “Buy Now, Pay Later” plans
- Any holiday-related financing
Now that everything is listed out, you can prioritize what needs to be paid off first.
Focus on High-Interest Balances First
If you want to make real progress, interest rates matter just as much as balances. We recommend paying off high-interest balances first (known as the “avalanche method”). This helps you save money in the long run by reducing how much you pay in interest.
Make a Temporary Spending Shift (4–6 Weeks)
We’re not telling you to cut out all the fun in your life, but a little reprioritizing can go a long way. A short-term shift like the ones below for 4–6 weeks can make room for major debt payoff progress.
Consider:
- Pausing unused subscriptions
- Cutting back on impulse purchases
- Holding off on trips
Automate Payments to Set Yourself Up for Success
Having payments set up and ready to go ensures that you won’t miss a bill.
Set up automatic payments so:
- You don’t miss due dates
- You stay consistent
- You reduce stress and decision fatigue
Build a Sustainable Plan So Progress Lasts
The best financial plans are the ones you’ll still be following in six months. Doing a deep dive into your finances at the beginning of the year can set up the rest of the year for success. The plan you put in place to pay off your holiday debt can become a blueprint for how you approach your finances going forward.
Here are a few ways to make sure your progress lasts long into the new year:
- Customize your approach to your income and lifestyle
- Automate what you can
- Build a monthly spending plan that prevents new debt
Financial confidence does not come from perfection. It comes from having a plan you trust and support along the way. As always, BFF is here to help.
