How to avoid holiday hangover debt this season

The holidays are filled with joy, celebration, and time with the people who matter most. But once the decorations come down, many people are left facing something far less cheerful: holiday hangover debt.

It’s that sticker shock moment when the bills roll in, budgets feel tight, and the holiday glow starts to fade.

The good news is that holiday hangover debt is preventable. With a thoughtful plan and a few simple habits, you can enjoy the holidays without carrying the cost into January.

Here is how to stay grounded financially while still embracing the magic of the season.

Revisit your budget before any final purchases.

Even if you already started shopping, take a moment to review what you have spent so far. A simple check-in can help you see where you may still have room and where you might want to pause.

Look at your recent transactions in Online and Mobile Banking and decide how much more you are comfortable spending this month. This resets expectations and gives you clarity for the home stretch.

Relevant article: 7 ways to simplify the holidays

Keep an eye on seasonal extras.

In December, spending often increases through small purchases rather than big ones. Holiday coffees, festive outings, delivery fees, and impulse buys can add up quickly.

Give yourself one or two intentional treats each week and try to limit the rest. Small awareness goes a long way in preventing sticker shock later.

Use rewards thoughtfully.

If you are using a credit card for final purchases, make sure you are earning something back. Cash back or points can help soften the cost of holiday expenses.

Just be sure you only charge what you can comfortably pay down in the new year.

Skip high interest credit when possible.

High interest balances are one of the biggest contributors to holiday hangover debt, especially when purchases are made late in the season.

Interest can build quickly and turn small remaining expenses into a larger balance once January arrives.

If you still need to use credit, focus on placing your last purchases on options that have lower rates or more manageable terms. It can also help to limit charges on cards that already carry a high balance, since adding to those accounts increases the amount of interest you will owe later.

Being mindful of where you place those final expenses can make a meaningful difference and helps you start the new year on firmer financial ground.

If holiday debt happens, consider a balance transfer.

Even the most careful planners can end up with a higher balance once the holidays are over. If you enter January with more debt than expected, a balance transfer credit card can help you get back on track.

A balance transfer can help you:

• Pay down debt more quickly by reducing interest

• Combine multiple payments into one easier monthly bill

• Create breathing room so you can recover from holiday spending more comfortably

Exploring this option after the holidays can help you feel more confident and in control moving into the new year.

Reflect on what worked well and enjoy the season.

As the year winds down, think about which spending choices felt manageable and which felt stressful. This reflection helps you build healthier habits for next year without needing a full plan in place right now.

The holidays should feel warm and joyful, not weighed down by financial worry.

Even in mid December, small adjustments can help you move into the new year with less stress and greater stability. And if you do end up with holiday hangover debt, support is available to help you recover with confidence.

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