As a mom, the holiday season can be the ultimate paradox: it’s a time for celebration, family, and giving, yet it usually leaves us buried in credit card debt. Between buying presents, hosting holiday dinners, and keeping up with holiday travel, it’s easy to end up with holiday debt.
Did you know that people spent an average of $1,530 on holidays in 2023? Most of this was paid for with credit cards.
MoneyGeek conducted a survey and found that 40% of Americans were still paying off holiday debt well into February the next year. Sound familiar?
Don’t worry, I’ve been there too, and I’m here to help. You can pay your holiday expenses without going insane or running out of money. Trust me; I know what you are going through. I know several tried-and-tested strategies to pay off your holiday debt so you can start the new year on a fresh financial foot.
Paying off holiday debt is the first step to starting the new year financially stress-free.
The Real Impact Of Holiday Debt On Moms
Before we dive into how to pay off holiday debt, let’s take a moment to acknowledge the reality: holiday debt can feel personal. Holiday shopping for mothers is usually motivated by our need to provide magical experiences for our children, but the aftershock that results from mounting bills—can be emotionally taxing.
Debt affects more than just our finances; it impacts our well-being, relationships, and even parenting. As moms, we juggle everything—careers, kids, and homes—and the added weight of debt only increases that load. That’s why it’s essential to tackle holiday debt in a way that fits into your already busy life.
So, how do we do that?
Step-By-Step Guide To Paying Off Holiday Debt As A Mom
You have to get a good picture of how terrible your debt is before you begin considering how to handle and pay off it.
This is where it all begins: get ready to review the figures and create a decent schedule.
1. Prioritize Your Payments (Because You’ve Got Limited Time)
Many moms lack a luxury like time. Financial management usually ranks lowest among the chores between juggling school drop-offs, job schedules, and soccer sessions. But don’t let the task of tackling your holiday debt sit too long—it’s important to make it a priority, even if it’s just for a few minutes a day.
The first step? Create a budget that shows how much you owe and where your money is going. Look at all your holiday-related debts, especially those with high-interest rates like credit cards. These should be your top priority for repayment.
Need help? Try this Monthly Budget Tracker to get organized.
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Pro Tip: Every week, set aside a half-hour “money date” with yourself. This is your time set specifically to review your finances, change your budget, and pay any required bills. Though it’s a reasonable length of time that won’t conflict with family obligations, it can significantly help one keep on target.
2. Take Advantage Of Balance Transfers (Because Who Has Time For Interest?)
Credit card interest can rapidly mount up and make you feel as though you are caught in an endless cycle of payments. You can address this by transferring your high-interest credit card debt to a 0% balance card. This lets you pay off your debt free from the extra weight of interest, therefore saving time and simplifying management.
If you follow this path, be sure the transfer terms match. Usually lasting 12 to 18 months, some cards provide 0% interest for a limited period; so, you should make sure you pay off the balance before the interest starts to run back in.
Brands To Consider: Chase Freedom Unlimited, Citi Simplicity, or any card offering a 0% APR promotion.
3. Consider Debt Relief Services
For moms juggling work, kids, and debt, sometimes seeking professional assistance is helpful. Negotiating with creditors and debt relief companies can help lower interest rates, consolidate debt into one reasonable payment, or reduce the total amount owed.
Accredited Debt Relief
| Feature | Details |
|---|---|
Time to Debt-Free | 24 to 48 Months |
Debt Amount Handled | Up to $100,000+ |
Fees | No upfront fees; success-based |
Average Client Savings | 40% or more reduction in monthly payments |
BBB Rating | A+ |
Trustpilot Rating | 4.6 out of 5 |
Accredited Debt Relief is renowned for its commitment to turning financial struggles into success stories. With more than $223 million in debt addressed and more than 82,000 consumers registered, their approach stresses the grouping of debt under a single, reasonable payment. They will help you reach debt relief in 24 to 48 months by giving you choices that fit your budget and needs. And the most pleasing feature? Starting the process won’t damage your credit score. Their success-based rates guarantee that you pay only for results.
Ready to see how Accredited Debt Relief can transform your financial future?
Learn more about their personalized plans and how they can help you breathe easier.
National Debt Relief
| Feature | Details |
|---|---|
Time to Debt-Free | 24 to 48 Months |
Debt Amount Handled | Varies; often substantial amounts |
Fees | No upfront fees |
Average Client Savings | Significant reductions; varies |
BBB Rating | A+ |
Trustpilot Rating | 4.5 out of 5 |
National Debt Relief is a leader in customized debt relief, having assisted over 500,000 clients with over $1 billion in debt resolved.Whether you’re a mom managing a household or juggling various responsibilities,their tailored financial relief solutions can help you meet your goals and budget effectively.Their offered services are meant to help you reach security and financial savings. Most of their customers are happy; they do not charge any upfront payments.
Curious about how National Debt Relief can tailor a solution for you?
Discover how their expert team can help you find financial freedom and restore your peace of mind.
Freedom Debt Relief
| Feature | Details |
|---|---|
Time to Debt-Free | 24 to 48 Months |
Debt Amount Handled | Up to $100,000+ |
Fees | No upfront fees |
Average Client Savings | Significant reductions; varies |
BBB Rating | A+ |
Trustpilot Rating | 4.6 out of 5 |
Freedom Debt Relief stands out with its impressive track record, resolving over $18 billion in debt since 2002. Their approach is simple but effective: they negotiate and combine your debt to cut the overall balance and payments. Having a program meant to reach debt-free status within 24 to 48 months and without upfront costs, they have helped around a million customers take charge of their money.
Want to learn how Freedom Debt Relief can help you achieve financial stability?
Explore their services to see how you can start your journey towards a debt-free future today.
4. Avoid The Post-Holiday Spending Trap
You just made it through the holidays, and you were enticed by January clearance bargains– I know we all have been there. Before you know it, you’re adding more to your debt, even as you’re trying to pay it off.
One way to avoid post-holiday spending traps is to unsubscribe from retail emails and apps that encourage impulse purchases. By paying off holiday debt faster, you can focus on your long-term savings goals. Remind yourself that spending nothing is the ideal “sale.”
Reducing unnecessary purchases will help you not only save money but also prevent the guilt and worry resulting from extra holiday debt.
Real Moms Share Their Debt Relief Tips
“Focus on experiences: It can be easy to get caught up in the latest toys and gadgets that can put a strain on your wallet. Plus, the stress of trying to keep within budget and buying it before it goes out of stock can really take a toll. Instead of buying a product, consider finding an affordable activity that you can do with your family and friends. For example, you can attend a holiday market, go ice skating, or bake festive treats together. It’s a great way to enjoy the holiday season with loved ones without having to break the bank. You’ll get to create positive memories and make traditions that can last for many years to come.”
How To Pay Off Holiday Debt While Saving For The Future?
One of the toughest challenges moms face is saving money for the future while paying off debt. It can feel like an impossible chore, but with the right strategies, you can tackle both simultaneously.
(i) The Debt Snowball Method
This involves paying off your smallest debts first, regardless of interest rate, to gain momentum. Quick wins provide a psychological boost and keep you motivated.
How It Works:
- Sort your debts, smallest to largest.
- While making minimum payments on the others, concentrate on clearing the least amount of debt.
- Pay off the first debt then on to the next one on the list.
Example:
You owe:
- $300 on Card A
- $800 on Card B
- $1,200 on Card C
If you allocate $50 monthly to Card A, it will be paid off in six months. Then, take that $50 and apply it to Card B in addition to your current minimum payment. As you pay off each debt, the amount you can use for the following increases.
Breaking up payments into smaller chunks made paying off holiday debt feel more manageable.
(ii) The Debt Avalanche Method
The Avalanche Method emphasizes initially paying off your high-interest debt, thereby saving more money over time.
How It Works:
- Sort your loans in the greatest to lowest interest rate order.
- Save additional money for the debt with the highest interest rate.
- Keep paying little amounts on the other loans.
Example:
You owe:
- $1,000 on Card A (20% APR)
- $800 on Card B (15% APR)
- $500 on Card C (10% APR)
Real Moms Share Their Debt Relief Tips
“I usually like to start saving for the holidays throughout the whole year to avoid debt and going over budget. However, sometimes that wasn’t always possible. Moms who are dealing with holiday debt should prioritize paying it off fast. Time goes by fast and before you know it, you’ll need to prepare for the next year’s holiday season.
A balance transfer can be a great way to pay off high interest credit card debt quicker. Just be sure to avoid making new purchases on the card since those may not be covered by the 0% APR offer. Plus, you don’t want to dig a deeper hole with debt.
I personally like to use the avalanche method of paying off debt so I can save the most money. Going on a spending fast for a few days to prioritize savings or picking up extra hours at work or through a side hustle can also help you accelerate holiday debt payoff.”
Prioritize paying off Card A first. Once Card A is cleared, move on to Card B, and then Card C. Over time, this approach minimizes the total interest you’ll pay.
As a busy mom, you may find the snowball method more rewarding because it offers quick, visible progress. But if you want to save money over time, the avalanche method is your best bet. Consistent, extra monthly payments are the key to paying off holiday debt.
Need help keeping track of all your holiday debt?
Trust us; when you see those gift receipts following the holidays and realize how terrifying they actually are, we all know what you mean.
To get you set up, we created a free planning printable that will soon become your new best buddy.
It breaks down your debt, income, and expenses so that you know exactly where your money is going (and why it’s not staying in your bank account)
5. Set Up A Sinking Fund For Future Holiday Expenses
A sinking fund is a separate savings account where you save a small amount of money every week or month for a designated purpose, say holiday expenditures. This lets you budget for holidays next year without using credit cards.
Pro Tip: Start a sinking fund in January with a target holiday budget for the following year. By the end of the year, even little weekly donations can mount up and help you to enjoy the holidays without running you into debt.
For example, If you save just $20 a week beginning in January, for instance, by December you would have saved $1,040- enough to cover much of your holiday spending without using credit cards.
Real Moms Share Their Debt Relief Tips
“My suggestion would be to start a “sinking fund” and save up automatically throughout the year for it. So if you know you’ll spend $1,000 in November/December, automate saving $100 each month from January through October. Then you don’t have to go into any debt, and you’re prepared for the annual expected expense. This also works for any other annual but not monthly regular expense. I automate saving into sinking funds for insurances (I pay my car insurance, life insurance, and earthquake insurance annually) and for travel as well.”
Creative Ways To Pay Off Holiday Debt As A Mom
Even with a busy schedule, these simple, mom-approved techniques for paying off holiday debt will help:
6. Monetize Your Hobbies
Many women have interests in knitting, crafts, writing or any other hobby that makes money– could be income sources. Think about freelancing and then selling your works on websites like Etsy.
7. Cut Out One Monthly Luxury (Yes, Just One)
We understand the need for sporadic indulgences, such as your daily cappuccino or your preferred TV subscription. Cutting out just one luxury can free up extra money to put toward paying off debt.
Pro Tip: Take a month-long vacation from a streaming service or challenge yourself to prepare your preferred coffee at home. Direct the rescued funds straight toward your debt repayments.
8. Create A Family Savings Challenge
Looking for a fun way to save? Start a weekly envelope challenge. This challenge will help the entire family save money. You might organize a “no-spend weekend,” for instance, when every family member contributes, or encourage your children to come up with original (and free) entertainment ideas.
9. Sell Unused Items In Your Home
Like other mothers, your house is overflowing with stuff your family no longer uses—from furniture to toys to clothes for growing children. Profiting from sales of these goods on websites like Poshmark, Facebook Marketplace, Craigslist.
You can also sell your unused gift card at CardCash, and Raise.
Spend one weekend decluttering and arranging your house. Making it a fun family activity will also help you to earn extra money. Have the children assist with identifying items they no longer need for toys or clothing; and give them a small incentive for helping out. The money earned from selling these items can go directly toward your holiday debt repayment.
Real Moms Share Their Debt Relief Tips
“I have a separate fund that I use to manage holiday expenses. I put money aside every month, and there’s a place to draw from when the holidays roll around. Additionally, I save my rebate and cash-back rewards to use for holidays. For example, I save the rewards from Swagbucks and use them to get gift cards I can then use to make gift purchases. It’s the same with Capital One Shopping and Rakuten. I keep these rewards set aside to use on top of the holiday fund to manage gift costs.”
Maximizing Savings While Paying Off Debt
Although juggling debt reduction with future savings can be difficult, it is not impossible. These clever ideas will help you increase your savings even while you work on your holiday debt:-
10. Set Up Automatic Savings Transfers
By setting up automatic payments, paying off holiday debt becomes more manageable.
Every pay you get should set up automatic transfers to different savings accounts this way; you’re paying yourself first without having to think about it.
11. Match Your Debt Payments with Savings Contributions
Challenge yourself to also save $100, if you are paying $100 toward your holiday debt this month. This psychological strategy will drive you to pay off debt and increase your savings simultaneously.
12. Open A High-Yield Savings Account
Although regular savings accounts have little interest, a high-yield savings account will yield a more significant return on your money. Many online banks offer better interest rates than conventional banks, accelerating your savings growth. You can consider these 10 high interest savings account of 2024.
Also, consider using your tax refund towards paying off holiday debt this year.
13. Delegate Household Chores To Create More Time For Money Management
Moms are often seen as the household managers, but that doesn’t mean you have to do it all. If you’re feeling overwhelmed, allocate some of the daily jobs—whether it’s allocating youngsters their projects or if you have any adult kids take on more responsibilities—so you can carve out a little time each week to concentrate on paying down your holiday debt.
14. Leverage Side Hustles That Don’t Eat Up Your Time
As a busy mom, side hustles need to be realistic. Look for opportunities that fit into your already-packed schedule, such as working online during nap times or on weekends.
Consider micro-tasks like freelance writing, virtual assistant work, or selling homemade crafts online. These jobs can be done from home and are flexible enough to fit into your routine. Platforms like Upwork, Fiverr, or even Etsy can help you earn extra cash without sacrificing family time.
Advice from Women to Women: Discover exclusive insights from Samantha in our candid interview. With her extensive experience in side gigs and making money, she shares valuable tips and strategies that have fueled her success.
Don’t miss out on these insider secrets!
Staying Motivated and Maintaining Financial Wellness
The road to paying off holiday debt can be long, but staying motivated is key to your success. Here are a few ideas to help you stay focused on your goals:-
15. Celebrate Small Wins
If paying off holiday debt feels overwhelming, start with small steps and celebrate progress.
Celebrate every time you meet a savings goal or pay off a credit card balance. These little benchmarks help you remember that you are progressing despite occasional slow travel. Give yourself a little non-financial incentive—a family movie night or a leisurely evening with a book. The idea is to acknowledge your diligence without increasing your financial load.
16. Visualize Your Debt-Free Future
It’s easy to get bogged down by day-to-day financial stress, but keeping your eye on the bigger picture can help. Whether it’s preparing for a family vacation, creating an emergency fund, or just savoring the freedom of debt-free living, spend a few minutes every day seeing how your life will look once your debt is paid off.
To keep inspired, have a vision board. Seeing your progress in a concrete form might motivate you to press on, especially on trying days.
How To Prevent Holiday Debt Next Year?
Now that you’ve got a solid plan to pay off this year’s holiday debt, let’s discuss how to stay out of the same trap next year.
17. Set A Holiday Budget Before The Season Begins
During the holidays, it’s tempting to go overboard; but, if you create a reasonable budget before the season begins, you can assist to prevent debt. Figure out how much you want to spend on gifts, decorations, food, and travel, and stick to that number.
Use a budgeting app like You Need A Budget (YNAB) or Personal Capital (Empower) to track your spending in real-time during the holidays. This will help you stay on budget and avoid the shock of post-holiday credit card bills..
Breaking the habit of overspending is crucial after paying off holiday debt.
Download our free printable because guessing where your money went never worked for anyone!
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18. Shop Sales and Plan Early
Steer clear of last-minute purchasing; it usually results in overspending. Instead, start looking for holiday gifts Black Friday or Cyber Monday during off-season bargains. Making ahead plans will save you money and time and help you to reduce your reliance on credit cards when the holidays arrive.
Score savings on purchases with cash-back apps like Rakuten or DollarSprout. These applications can help you identify the best deals without spending hours looking for promo codes.
Quickly paying off holiday debt calls both discipline and regular payments to prevent interest from building up.
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Plus, you’ll get access to exclusive content like more free printables, tools, and insider hacks for tackling that holiday debt like a pro.
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Wrapping Up: What’s Your Plan?
You have already gone through more than most would. Your resilience shines through in every challenge you encounter. Tackling holiday debt is just one more hurdle, and your strength and determination have already proven that you can handle it.
So, what’s your next step? Breathe, pick a plan that works for your life, and believe yourself to be able to go beyond this. Because you will. You have overcome more difficult challenges; financial freedom is just within your reach.
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FAQs
How do I get out of holiday debt?
First, look at how much you owe all together, and then focus on the debts with the highest interest rates. Use the “Debt Avalanche” or “Debt Snowball” method, and think about combining your debts or getting lower interest rates. A debt relief service like Accredited Debt Relief, National Debt Relief, or Freedom Debt Relief can also help you.
How to pay off $50,000 in debt in 1 year?
Cut costs aggressively, get extra work to make extra money, and make a strict budget. You can pay off your debts faster by consolidating them and using extra money, like bonuses. If you need help with organized plans, get help from a professional.
How to pay off a holiday?
Review all of your holiday debt, create a payment schedule, and pay off the highest interest rate first amounts. Combining your obligations or using a credit transfer card could help you to qualify for reduced interest rates. The sooner you start paying off holiday debt, the less interest you’ll accumulate.
How to celebrate paying off debt?
Simply celebrate your achievement. Organize a low-cost party with friends or reward yourself without going broke. Consider your successes and create fresh financial goals like saving for a backup fund.
