Bounce Back from Holiday Debt

Spent more than you expected? Here’s what you can do!

It’s so easy to spend more than expected over the holidays — especially with inflation driving prices up. If your credit card bill was higher than you’d like, don’t panic. These tips will help you manage the damage.

4 Tips to Bounce Back From Holiday Debt

   Tip #1: Don't ignore the problem

    Tip #2: Condolidate debt at a lower rate

    Tip #3: Consider a balance transfer

    Tip #4: Get in shape for next year

Tip #1: Don’t ignore the problem

To deal with a problem, face it head on. Look at your credit card balance as a challenge you can solve. Write down the interest rate, balance and due date. Now you’ve got motivation, a goal and a timeframe. We’re here to support you and provide you with advice and guidance.

Tip #2: Consolidate debt at a lower rate

Credit cards generally have very high interest rates, so if you can’t pay the balance off in full from your savings, look for other ways to borrow at lower rates. For example, you may be able to consolidate debt from one or more credit cards into:

A personal loan with a fixed term and regular payments
A personal line of credit that lets you decide when to repay
A home equity line of credit with the lowest rates

Talk to an advisor about consolidating your debt

Tip #3: Consider a balance transfer

Sometimes, credit cards offer low introductory interest rates on balances transferred from other credit cards. You can use this type of offer strategically if you’re confident you can pay off the amount you owe before the regular interest rate kicks back in.

Talk to an advisor about a Balance Transfer

Tip #4: Get in shape for next year

Once you’ve got this year’s post-holiday debt sorted, make sure you’re not back in the same place next year. Commit today to automatically deposit a small amount from every paycheque into a savings account dedicated to covering next year’s gifts and entertainment. By the end of the year, you can effortlessly accumulate enough to cover your 2023 holiday budget.

Download our budgeting worksheet here.