How to Pay Off Holiday Debt Quickly

How to Pay Off Holiday Debt QuicklyAfter the shopping season arrives, we’re forced to consider how to pay off holiday debt quickly. So if you’ve been overspending to fill stockings, here are tips to swiftly reduce financial damage.

Credit cards may be a terrific tool, but they also make it simple to spend more than you have, which results in debt.

This is especially prevalent over the holidays when you’re spending more money than average on gifts, hosting visitors, and other holiday-related activities.

If you can’t pay off your bill in full and pay excessive interest rates, this is an issue. Even while retailers may offer substantial discounts in the weeks leading up to Christmas, you will only be getting a great bargain if you have to pay an interest rate of at least 16% per month on the amount on your credit card.

If you’re worried about debt, I’m here to help you to calm down and get on top of your finances.

As you might know, I’m a bestselling author, award winning designer and happiness researcher. I wrote a book called Happy Habits.

In my research, I learned a lot about how to make sure you develop positive habits which lead to your best life – by embracing specific principles of “habit formation” and making mindful habit choices each day.

With this in mind, in this article I will be sharing several habits which will quickly improve your financial circumstances. 

Tips to Pay Off Holiday Debt Quickly

There are several methods you may use to deal with your vacation debt. But before choosing the best repayment strategy, you should take into account interest rates, fees, and how much you can afford to pay.

1. Plan Ahead for Payments

The easiest strategy to deal with holiday debt is to allocate as much cash as you can to it. Increasing your budget could entail making a few short-term concessions. Of course, sometimes it is necessary to have emergency cash immediately, just in case.

Examine your income to see how much of it goes toward paying your usual home costs and expenses. If you can increase your income by taking on an extra job or working longer hours, do it. 

Alternatively, if you’re expecting a Christmas bonus, use it to reduce your debt.

Examine your spending next. Do you have any room to cut back on your leisure spending, subscriptions, or expenses? Selling used stuff (or presents that weren’t quite to your taste) is another inventive way to make money. Your additional savings and unclaimed funds might be used to pay off holiday debt.

Finally, you might be able to use part of the cash-back points you earned from your Christmas purchases as a statement credit. That can be a simple and quick technique to improve your balance.

2. Keep an Eye Out for Hidden Fees

Don’t overlook minute touches like décor and gift wrapping that add up. Reuse all you can; if you have old gift bags stashed away in a closet, here is your chance to shine. As a last resort, you can use the borrow money app from Pay Day Say to improve your situation.

Traditional dishes are straightforward, and don’t call for expensive ingredients, yet are nonetheless utterly tasty. particularly if you include an additional dab of butter. A quick and inexpensive method to improve any recipe a bit is to add a little additional butter!

3. Get High-Interest Credit Lines Paid Off

If you used a department store line of credit, you probably noticed that these revolving accounts frequently come with hefty interest rates, which typically range from 14% to 29% APR. High-interest rates should be paid off as soon as possible since they will raise your overall financial burden.

Pay the debt in full prior to the end of the billing cycle to avoid paying incorrect interest rates or surcharges.

Try asking for a personal consolidation loan with a reduced interest rate if paying off the sum is not practical. Use the loan to settle the credit line and further holiday debt after that.

4. Consult Your Creditors

The interest rates on credit cards are famously high, and if you miss a payment, they may become much higher. It is interesting that in accordance with the Fair Labor Standards Act, time off for vacation, sick leave, and federal or other holidays is not compensated.

In 2021, credit cards—including retail credit cards—were reportedly utilized to pay for 

Christmas costs by approximately 90% of consumers, which is regrettable.

The good news is that if you ask, creditors may occasionally be ready to give you a break.

It may be as easy as giving the credit card company a call and asking for your interest rate to be lowered.

A specific hardship program may even be made available to you by creditors if you are in a serious financial bind. Just make sure you enquire about any potential interest costs and how the program will affect your credit reports and scores.

5. Utilize a Personal Loan to Combine Your Debts

If you have a significant amount of debt or don’t want to obtain another credit card, personal loans might be an excellent option to balance transfer cards. You can combine your credit card balances into a single personal loan if you utilized many cards for your holiday shopping. Your eligibility for a loan amount that will pay off your total bill may also rely on your credit score. Due to a lack of finances, 46% of respondents used a credit card to pay for a vacation.

You get a fixed sum of money from a personal loan over a certain period of time at a fixed interest rate. Although it’s uncommon, personal loans with 0% interest rates are frequently less expensive than carrying a load on your current credit card (s).

6. Save Money Automatically

If creating a budget for your Christmas shopping is too difficult for you, automate transfers to a savings account to relieve some of the burdens. Calculate your annual spending, split it by 12, and set up a direct transfer from your bank account into a savings account every payday. You’ll have the cash saved up by the start of the shopping season the following year.

A new computer for your soon-to-be high school senior or a priceless piece of jewelry for your mother are two examples of more expensive gifts that you might save for in this method.

7. Snowball Strategy

This strategy helps you stay motivated by lowering the number of debts you have to pay each month. Prioritize paying off the card with the lowest debt first, as much as you can. As before, make sure to settle all other accounts in full at least once a month. As you pay off one card, roll the money over into the card with the next-lowest debt. You will soon be paying off your whole debt while making fewer payments each month!


In general, paying off your debt after the holidays is a doable objective! Start by focusing on significant possibilities to save money and pay off debt rather than paying interest. Then use your creativity to locate, retain, and increase your income by utilizing the resources or abilities you already have. Your inventiveness will help you pay off debt more quickly and could even enable you to save money for the approaching holiday season.

Learn more habits to increase your success

Read my bestseller Happy Habits

Think happier. Think calmer.

Think about subscribing for free weekly tools here.

No SPAM, ever! Read the Privacy Policy for more information.

Pin It on Pinterest

Share This