How to Regroup from Holiday Debt

Another holiday season has begun, and you have some bad news. As you look at your finances and think about how much you have been and will be spending in the next few weeks, you may be wondering, “How can I regroup from holiday debt?”

Review these top tips to regroup from holiday debt and prepare for the upcoming year.

1. Create a Yearly Budget and Stick to it

One of the top ways to regroup from debt is to make a budget. Review each of your accounts. Determine where to decrease monthly expenses and use that money towards paying off your holiday debt.

2. Find a Seasonal or Part-time Job

If you have the ability and time, find a seasonal job to work during the evenings and/or weekends. It won’t be fun to work the hours, but depending on the amount of debt, it may only be for a few months. Use that extra, hard-earned cash towards your debt.

3. Make Your Own Starbucks at Home

Although everyone loves a good Starbucks coffee, it can be quite draining on the wallet. Instead of purchasing your daily $5 Starbucks beverage, make your coffee at home and save that money. That $5 will quickly add up to be applied towards your holiday debt.

4. Use Your Tax Return and Holiday Bonus

Instead of taking that big vacation, use your tax return and holiday bonus to pay off your holiday debt. Once it’s paid off, you can then easily save your money to take a paid vacation in the future.

5. Look Into a Personal Loan

Most credit cards have a high-interest rate which means spending even more money due to that interest. Look into acquiring a personal loan with a lower interest rate through South Metro Federal Credit Union. You can then apply that money to pay off your high rate credit card(s) and save money in the long-term.

6. Transfer to a Low-rate Credit Card

Similar to a personal loan, you can also transfer your high interest rate balance to a low-rate credit card. Although not many banks may offer a low-rate credit card, South Metro Federal Credit Union does. If you go this route, ensure you budget paying off the low-rate card as soon as possible.


These tops tips can help you regroup from holiday debt. As part of the first tip, ensure you create a budget for upcoming holidays to help prevent seasonal debt in the future. Check out South Metro Financial Education Services and South Metro’s Budgeting Tools that provide services and education to achieve personal and financial goals and improve your quality of life.