By Manny Salazar, CEO, Take Charge America
The most wonderful time of the year often doubles as the most costly. Between travel, decor, gifting and gathering—plus the added cultural pressure to make it all “picture perfect”—these expenses can add up fast and leave you scrambling come January.
If seasonal spending is stretching your budget thin in the new year, you’re not alone. The American Society of CPA’s 2025 Holiday Spending Survey revealed nearly half of US households intentionally took on debt to cover holiday-related costs.
With a deliberate reset in early 2026, families can regain control and confidence after a financially hectic few months. These practical steps will help create steady momentum and support a faster recovery from December’s spending frenzy.
Assess the true scope of spending
Closely examine statements across every account and total the balances. Include credit cards, store cards and personal loans, as well as buy-now-pay-later purchases (which are especially common during the holidays). These payments often span several months, making it easy to underestimate their impact on your budget. Once you’ve gained a complete view of what you actually owe, you can build a plan grounded in reality rather than guesswork.
Trim non-essential expenses
Scale back on subscriptions, dining out, personal maintenance and other conveniences. Start with charges that auto-renew and don’t directly support necessities such as housing, food or transportation. Shopping more intentionally helps increase available cash flow without derailing daily routines, and even modest cuts can free up money to apply toward high-interest debt.
Consider a balance transfer
Transferring a balance from a high-interest credit card to one with lower interest can accelerate payoff, applying more of your payments toward principal. Many card issuers offer zero percent interest on balance transfers for 12 to 18 months—an effective solution, as long as you stop adding new charges. Remember to factor in the transfer fee, which is typically a percentage of the balance being transferred. This option works best with a clear repayment plan and a firm end date.
Temporarily pause savings
If you’re saving for a car, home, travel or certain luxuries, hold on making new deposits until you’ve financially rebounded. Consider pausing or reducing emergency fund contributions if you already have a solid cushion, then set a reminder to resume savings once you’ve caught up so the pause doesn’t become permanent.
Consult with experts
Professional guidance can give you much-needed clarity after a season of overspending. Schedule a free credit counseling session with a nonprofit agency to get a customized budget and see if you qualify for a debt management plan. An outside perspective can help identify all your options and reinforce healthy financial habits through practical, professional guidance that’s tailored to your situation.
Take on a side hustle
Extra income shortens the repayment timeline. Consider flexible options through rideshare, food delivery or other gig work to generate additional cash. Directing that income toward one specific balance can create faster, more visible progress.
Budget for seasonal spending
Create distinct buckets for gifts, travel and festivities throughout the year—spreading these costs across several months reduces the need for last-minute credit usage. The more structure you build now, the less post-holiday headache you’ll encounter later.
Getting back on track after a season of spending usually doesn’t happen overnight. The small, consistent decisions you make now will reduce stress and restore stability over time. With a clear plan, the right support and a willingness to reassess habits, households can move into the year ahead with greater confidence and a stronger sense of financial control.
Connect with credit counseling professionals and find more guidance at takechargeamerica.org/debt-help.