Tips for Tackling High Holiday Credit Card Balances

Jan 07, 2026

Now that the 2025-2026 Holiday season has passed, lots of individuals and families are facing large credit card statements. According to the National Retail Federation and other surveys, “the average person in America spends around $900 to $1,000 on total holiday expenses, including gifts, food, and décor.”

Come January, many of us have regrets about over-spending in December. The stark reality is that if you paid just the minimum amount each month on a credit card with a $1,000 balance and 18% interest rate, it would take you about 9 years and 5 months to repay your debt! Plus, you’d owe $923.17 in interest: almost as much as the total of the items you purchased!

But there’s some good news about this situation: our expert credit counselors are here to help you make a plan to pay this debt off sooner—often with lower interest rates. It’s as simple as setting up a free 60-minute credit and debt counseling session. In this session, a compassionate counselor will review your finances and help you create an achievable plan for debt freedom.  

Remember, it’s never too early to start planning your expenses for the next Holiday season. Here’s some tips from our Financial Solutions team:

-Set aside a special bank account—just for your holiday spending—and deposit a set amount in it each month.
-Shop the after-holiday sales, especially for décor.
-Throughout the year, when you see something you think would make a good gift for someone, consider buying it then. And pay for it then.
-Consider using cash for holiday spending; once the dollar bills are gone, your spending is done. This approach is more immediate than using credit cards, and can help keep you on budget and avoid interest fees.
-Consider making some or all of your gifts. These could be treats, crafts, or offering your time.

If you find your spending is out of control and you’d like expert, caring help from FamilyMeans’ Financial Services team, get started by visiting our website: www.familymeans.org/financial-solutions/. They’re dedicated to empowering individuals and families by offering comprehensive credit and debt counseling and personalized debt repayment solutions. Debt doesn’t have to mean defeat!