Have the holidays left you with more bills than you planned?

It’s common to feel sideswiped by December, and it’s often not one or two blowout purchases that bust your budget — or even gifts at all.

It may just be a bunch of things that sneak up on you: Lights and candles for that festive get-together with friends, the extra grocery run for houseguests, the shipping or wrapping charge because you’re shopping late, the party outfit, the travel hiccup… Everything adds up. Plus, because it’s the holiday season, it all feels a bit fleeting — until the credit card bills arrive in January.

If this sounds familiar, first, take a breath. Between tradition and peer pressure, even careful planners face dozens of opportunities for costs to stack up fast during the holidays. In fact, 37% of people surveyed by LendingTree last year borrowed to cover their holiday spending, including 48% of parents with children. By mid-December, they’d already added an extra $1,223 in holiday debt, on average.

The key is not to get any further behind. Among LendingTree respondents who took on holiday debt in December, 41% said they were still digging out from the previous year’s bills. Taking steps to stem the tide now can help you prevent your debt from snowballing.

Here are some strategies to get back on track:

Hit pause on extras. For 30 days, freeze non-essential spending (e.g. eating out, new clothes, impulse buys on Amazon or at Target.) Send your freed-up dollars to one priority: the credit card with either the highest interest rate or the smallest balance. (Both approaches can work, but pick one and stick with it.)

Take stock of any unwanted holiday haul. Return what you can, sell things you won’t use, and use gift cards to buy essentials rather than gifts. Then use that “found money" to pay down your debt.

Put any one-offs (an annual bonus or tax refund) toward your debt. There are few better uses than wiping away a high-interest credit card balance.

Adjust your tax withholding. The IRS withholding estimator can tell you if the government is “over-withholding” — aka taking more than it needs from your paycheck. If it is, update your W-2 and put the extra cash toward your holiday debt. (Just note that the withholding estimator has not yet been updated to reflect changes made by the One Big Beautiful Bill Act.)

Create a “next December” fund to avoid a repeat next year. In 2025, 91% of U.S. adults planned to celebrate Christmas, Hanukkah and other winter holidays, according to the National Retail Federation. Setting aside money throughout the year can help ensure you’re not scrambling — or borrowing — when the season arrives again. And setting up recurring contributions to a savings account (or SoFi Vault) can take the onus off you to remember.

If you’re still struggling to pay your debts, talk to your lenders or ask a nonprofit credit counseling organization for help. If lenders aren’t willing to make accommodations, a reputable credit counselor can help you build a plan. Just make sure you know who you’re dealing with. “No legitimate organization will guarantee to settle all of your debts or get you fast loan forgiveness,” according to the Federal Trade Commission.

So what?

Holiday debt doesn’t mean your budget “failed.” It means December did what December often does. Taking steps to reset now can ensure it isn’t more than a temporary setback. It’ll also make the next holiday season easier on both your finances and your nerves.

Related Reading

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