Here’s your holiday shopping recovery plan
You snagged that hard-to-find toy, scored some amazing bargains or found the perfect meaningful gift for someone. Holiday gift-giving leaves you with a warm glow — at least until the bill arrives.
The average shopper spent over $1,000 last holiday season. And for many, those charges are on a credit card. And without the right financial plan, credit card users could end up paying off that holiday balance well into the new year.
Thankfully, there are a few simple steps to help you recover from the holiday shopping blues.
STEP 1: Check your transaction history
Now that the holiday shopping season is over, it’s time to assess the situation. Start by examining your account statements to make sure they accurately reflect the purchases you’ve made.
If you find any errors, report them as soon as possible. Mistakes at the cash register are common during the holiday rush — but so is credit card fraud, which increases significantly during the holidays. It’s also a good time to check your credit report for any mistakes.
Now you can tally up your holiday spending and start figuring out how quickly you can pay it off.
STEP 2: Set a budget.
The more extra money you can throw toward your holiday shopping debt, the less interest you’ll pay. Depending on how quickly you want to knock down your bills, finding the extra funds could take the form of eating meals at home, waiting to upgrade to the latest electronics or it could mean stripping your budget down to bare bones.
If you have multiple credit cards or loans to pay off, use the snowball method: Pay off the smallest balance first, regardless of interest rate. Once one balance is paid off, apply the monthly payment you allocated for that card to the next smallest balance until it’s paid off, and so on.
STEP 3: Get ready for next year.
It’s never too early to start thinking about next year. Countless people say spending too much during the holidays makes them stressed about their finances. Avoid the extra worry by:
• Set a holiday spending budget for 2026 early. Unexpected expenses, such as extra gifts or baking supplies, are one of the key drivers of holiday overspending. It pays to think about and budget for unanticipated expenses such as travel, eating out, guest supplies, gift wrapping supplies, shipping costs and more.
• Use automatic transfers to savings. Avoid adding to your credit card balance next holiday season by setting up small recurring transfers into a holiday savings account. It can be a set-and-forget way to save hundreds or even thousands of dollars in time for the coming shopping season.
You should be able to enjoy the holidays without the headache of extra debt. These simple steps can help you recover from 2025’s shopping spree and start planning for a debt-free 2026.
