Escaping the Holiday Debt Hangover: 7 Smart Ways to Get Your Budget Back on Track

National nonprofit credit counseling agency Take Charge America shares practical money management strategies to help people recover from seasonal spending frenzy

PHOENIX--(BUSINESS WIRE)--The most wonderful time of the year often doubles as the most costly. Between travel, decor, gifting and gathering – plus the added cultural pressure to make it all “picture perfect” – holiday expenses can add up fast and leave you scrambling come January.

“Even the most fiscally responsible households aren’t immune to seasonal expenses stretching their budgets thin in the new year,” said Manny Salazar, CEO of Take Charge America, national nonprofit credit counseling and debt management agency. “A deliberate reset in early 2026 can help families regain control and confidence after a financially hectic few months.”

Salazar outlines practical steps to create steady momentum after the holiday rush:

• Assess the true scope of spending. Closely examine statements across every account and total the balances. A complete view of what you owe shapes a realistic plan that neither overestimates nor underestimates December’s impact.
• Trim non-essential expenses. Scale back on subscriptions, dining out, personal maintenance and other conveniences. Shopping more intentionally helps open up cash flow without derailing daily routines.
• Consider a balance transfer. Transferring a balance from a high-interest credit card to one with lower interest can accelerate payoff, applying more of your payments toward principal. Many card issuers offer 0% interest on balance transfers for 12 to 18 months – an effective solution, as long as you stop adding new charges. Remember to factor in the transfer fee; usually a percentage of the balance being transferred.
• Temporarily pause savings. If saving for a car, home, travel or luxuries, hold on new deposits until you catch up on debt. You can consider pausing or reducing emergency fund contributions if you already have a cushion, then revisit once you’ve caught up.
• Consult with experts. Professional guidance can give you much-needed clarity after a season of overspending. Schedule a free credit counseling session with a nonprofit agency to get a customized budget and see if you qualify for a debt management plan.
• Take on a side hustle. Extra income shortens the repayment timeline. Consider flexible options through rideshare, food delivery or other gig work to generate additional cash.
• Budget for seasonal spending. Create distinct buckets for gifts, travel and festivities throughout the year. The more structure you build now, the less post-holiday headache you’ll encounter later.

For more financial guidance on climbing out of debt, visit Take Charge America’s Education Center.

About Take Charge America, Inc.

Founded in 1987, Take Charge America, Inc. is a nonprofit agency offering financial education and counseling services including credit counseling, debt management, housing counseling and bankruptcy counseling. It has helped more than 2 million consumers nationwide manage their personal finances and debts. Learn more at takechargeamerica.org or call [phone].