10 Ways You Can Recover From Holiday Debt & Just Get On With Your Year

If you feel like you spent way too much during the holidays (and lost track of your holiday budget), then you’re definitely not alone.

Between holiday travel expenses, gift giving, decor, and throwing parties, it’s easy to splurge and feel stressed over the financial aftermath.

But thankfully, there are some good ways to quickly recover from holiday debt and cut back on your spending.

It’s not always the easiest, but getting back on track now that the holidays are over really is essential. Then you can move on with your life this new year and start saving and planning for more important goals.

Also, you just won’t have that holiday spending stress hanging over your head!

So read over these after the holiday spending tips and debt payoff ideas and see what works best for you.

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1. Create Savings Goals

First and foremost, sit down and take time to assess your current financial situation.

Write down your spending, credit standing, debt, and income. This will give you an insight into everything you need to know.

Then write down your short and long-term financial goals for how you’ll get out of your holiday debt and improve your finances during the rest of the year. Then assign a date for each goal so that you’ll actually stick to it and get creative in finding ways to make it happen.

2. Choose a Payment Strategy That Works for You

Try to analyze which debts need your immediate attention. Then figure out which payment strategy will work for you and assess how it will affect your finances.

You wanna be prepared to budget correctly so that you’re never late on payments, and getting penalties and fines (therefore adding to your debt).

3. Make a Budget

This one seems like a no brainer, but it’s essential and needs to be listed (even if you’re dealing with a holiday hangover).

A budget is an amazing way to track your spending and see where your money is actually going, and how much of it can go towards your holiday debts.

It gives you the guidance you need to cut out unnecessary spending and allocate that money towards what you owe for Christmas presents and celebrations.

It’s the eyes you need to see into where you’re going wrong and how fast you can go when it comes to paying off your debt.

And if you need some help in understanding how to do this, then I have a helpful guide on how to start a budget.

4. Sell Gifts You’ll Never Use

This is a quick and simple solution, and there’s honestly nothing to feel guilty about.

I’m going to assume that you’ve received gifts in the past that you’ve never used (or wanted). It happens and if it’s just going to take up space in your home, then you might as well sell them.

Turn those gifts into some extra cash by selling them online or to a friend so that you can pay off your holiday debt a lot quicker.

5. Find Ways to Boost Your Income & Savings

If you have some extra time, look into different opportunities to earn more money from a side hustle. 

Some side gigs can be done in the comfort of your own home making it total win.

Also, try to go through your closets, cabinets, or storage, and sell things you don’t need online or in a garage sale. It’s a great way to pay off that holiday debt a little more quickly.

6. Save Up to Pay Up

Another simple way to recover from your holiday spending is by increasing your savings and decreasing your debts.

Think of the different ways you can save.

So for instance, instead of spending money on concert tickets, visit a free museum and take advantage of free activities in your city. Or try organizing a potluck dinner and avoid dining out. There are so many options!

The money you save over time by cutting out unneeded expenses can help you get out of debt much faster.

7. Use Tax Returns & Holiday Bonuses

If your workplace gives holiday bonuses and you’re expecting a tax return, put that towards getting out of debt just that much sooner.

I know that it’s tempting to use that money to go out for coffee with friends or shop on Amazon, but if you don’t want that holiday debt looming over you, then it’s a smart move.

8. Do a 21-Day No Spend Reset Challenge

If you’re feeling overwhelmed by your payments, then try a 21-day no spend reset challenge.

So for 21 days, you’re only going to be buying essentials, and cutting down on your use of those essentials (for max savings). So for instance, how can you get creative with your meals with the ingredients you already have in the cupboard?

And during this time, you’ll also wanna create rules like only having coffee at home or no online browsing.

Any money that would have been spent goes straight towards your debt payoff.

9. Sell 10 Things in 10 Days

Have a trackable debt payoff countdown and find things you can sell in your home (that’ll make you good money) for the next 10 days.

So look for in-demand clothing pieces, appliances, and furniture that call all be sold on Facebook Marketplace, Craigslist, FB groups, or even Reddit groups for your location.

10. Make Sure You’re Ready for the Next Holiday Season

If this last holiday season caused you a lot of stress, then it’s probably a good idea to start prepping now. Here are a few ways you can do that and avoid this cycle:

• Start looking for deals on presents months in advance.
• Set aside a certain amount from each paycheck and put it into a holiday savings account.
• Look for holiday decor, seasonal clothing, and more that’s now off season and on discount.

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