The holiday rush has come to an end. You’re ready to head into the New Year on a good note. Until you realize one thing: you’re left with a pile of debt you’re not quite sure how to pay off.

You’re not alone. Many Americans find themselves carrying holiday debt months after the final presents are unwrapped.

The good news? With a few intentional steps, you can reduce that debt and regain financial control, without completely overhauling your lifestyle. Here’s a smart, actionable plan to help you reset:

Know Your Debt (List It Out)

Many people avoid looking at their debt because it triggers anxiety. While it might feel intimidating, it’s important to get everything out in the open — you can’t reduce what you don’t fully see.

Start by listing:

• Credit cards
• “Buy Now, Pay Later” plans
• Any holiday-related financing

Once everything is in one place, it becomes much easier to prioritize what needs attention first.

Focus on High-Interest Balances First

If you want to make real progress, interest rates matter just as much as balances. Interest makes debt linger longer than it should.

Following the avalanche method (paying off highest interest rates first) instead of the snowball method can help shorten your payoff timeline by months.

Adjust Your Spending for 4–6 Weeks

You don’t have to eliminate all fun spending, but a little reprioritizing can go a long way. Redirect a few non-essential expenses toward your balances.

Consider:

• Pausing unused subscriptions
• Cutting back on impulse purchases
• Holding off on trips

Automate Payments

Setting up automatic payments helps ensure you don’t miss a bill and keeps momentum working in your favor.

Build a Sustainable Plan (So Progress Lasts)

The best financial plans are the ones you’ll still be following six months from now. The plan you use to pay off holiday debt can become a blueprint for how you approach your finances the rest of the year.

To make your progress last:

• Customize your plan based on income, lifestyle, and goals
• Automate payments to reduce decision fatigue
• Create a monthly budget to avoid debt in the first place

If you’d like support creating a personalized plan, we’re here to help.