Feeling the financial aftershocks of the holidays? You’re not alone — and you’re not stuck.
January is often when reality sets in. The decorations are packed away, the celebrations are over, and suddenly the credit card statements start rolling in. If you’re feeling stressed, overwhelmed, or frustrated about holiday spending, take a breath. A holiday debt hangover is common — and manageable.
With a clear plan and a few smart moves, you can reset your finances, regain control, and set yourself up for a stronger year ahead.
Let’s walk through it together.
What is a Holiday Debt Hangover?
A holiday debt hangover happens when seasonal spending carries over into the new year — often in the form of credit card balances, drained savings, or tighter monthly cash flow.
It’s not a personal failure. Rising costs, family expectations, travel, and generosity all add up quickly. The key isn’t guilt — it’s action.
Step 1: Get Clear on the Numbers (No Judgment)
Before you fix anything, you need the full picture.
Take 15–20 minutes to list:
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Credit card balances
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Personal loans
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Any holiday-related expenses still being paid off
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Interest rates on each balance
Knowing what you owe and where each payment goes helps you prioritize and avoid surprises.
Step 2: Choose a Debt Paydown Strategy That Works for You
There’s no one “right” way — just the way you’ll stick with.
Option 1: The Debt Avalanche
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Focus on the highest interest rate balance first
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Pay minimums on everything else
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Saves more money over time
Best if: You’re motivated by logic and long-term savings.
Option 2: The Debt Snowball
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Pay off the smallest balance first
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Roll that payment into the next balance
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Builds momentum fast
Best if: You’re motivated by quick wins.
Both work. Pick one and commit.
Step 3: Reset Your Budget for Real Life
Post-holiday budgets shouldn’t feel punishing. They should feel doable.
Start with:
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Cutting back temporarily on non-essentials
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Reviewing subscriptions and recurring charges
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Setting a realistic monthly debt payment
Even small adjustments can free up cash without burning you out.
Step 4: Simplify with Debt Consolidation (If It Makes Sense)
If you’re juggling multiple high-interest balances, consolidating them into one payment may help:
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Lower your interest rate
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Streamline due dates
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Make repayment feel more manageable
Before consolidating, always compare interest rates and total repayment costs. The goal is simplicity and savings.
Tools That Can Help You Pay It Down Faster
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Personal loans[1] – to consolidate multiple balances into one payment
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HELOCs[1-2] – for homeowners looking to leverage equity at a lower rate
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Mortgage refinance[1] – if monthly cash flow is tight and rates make sense
Step 5: Speed Things Up with Extra Cash
If your debt feels manageable but slow to move, small boosts can make a big difference.
Sell What You’re Not Using
Decluttering your home can declutter your balance, too. Unused electronics, clothing, or furniture can be turned into quick cash through online marketplaces — and applied directly to debt.
Try a Short-Term Side Gig
This doesn’t have to be forever. Even a few weeks of extra income — freelance work, deliveries, retail shifts — can help knock down high-interest balances faster.
Pro tip: Treat this money as “debt-only” income so it actually moves the needle.
Step 6: Start Preventing Next Year’s Hangover — Now
Your future self will thank you for this step.
Create a Holiday Fund
Dividing your holiday spending across the year makes it easier to manage. A Holiday Club Savings Account[3] helps you save a little each month so the money is ready when the season arrives — without relying on credit cards.
Set Spending Expectations Early
Gift exchanges, spending limits, or experience-based traditions can reduce pressure and cost.
Track as You Go
Checking in on your spending during the season helps you adjust before things spiral.
Here’s the Good News
A holiday debt hangover doesn’t define your year — or your financial future.
With a clear plan, steady progress, and the right tools, you can:
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Reduce stress
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Pay down debt faster
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Build confidence with money
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Enjoy future holidays without financial regret
At APCU/Center Parc, we believe money should support your life — not weigh it down. If you’re ready to reset, we’re here to help you move forward with confidence.
Here’s to a fresh start — and a financially healthier 2026.
[1]Credit union membership, credit qualifications and other conditions apply. The rate may vary depending on each individual’s credit history and underwriting factors. Not all applicants will qualify. Programs, rates, terms, and conditions are subject to change without notice.
[2]HELOCs not available in the State of Texas.
[3]Credit Union Membership eligibility applies.
This credit union is federally insured by the National Credit Union Administration.
APCU/Center Parc is an Equal Housing Opportunity Lender