Post-holiday debt hangovers are real, and with the new year around the corner, now is the perfect time to reset and start fresh.
After all the celebrations fade, the financial reality can set in — that moment when you think, “Wow, I really spent that much money.”
If you’re looking to start strong in the new year, there are a few steps you can take right now to set yourself up for success.
The Holiday Spending Reality Check
NerdWallet’s Sean Pyles said the holidays are a common time for spending to get out of hand.
“It’s very easy because you want to appreciate your loved ones and give them the gifts you think they deserve. But that can lead to what we call a holiday debt hangover,” Pyles said.
Watch below for a breakdown of the strategies you can use to beat holiday debt:
Beat holiday debt hangover before 2026 with these simple financial strategies
After a season of extra spending, the start of a new year is a natural time to hit reset and set some new financial goals. I turned to the experts to find out where to begin.
Step One: Take Stock of Your Debt
Pyles said step one in any financial reset is taking stock — looking at exactly how much you owe and creating a plan to tackle it. But he said that the plan needs to be realistic.
“It can be really tempting to have these big pie in the sky resolutions,” Pyles said.
Instead of aiming too high too fast, Pyles suggests small, achievable changes that are more likely to stick.
“Find a goal, like maybe it’s going out to eat one less time a month, or actually finding that debt payoff strategy that they can stick with,” Pyles said.
Two Proven Debt Payoff Strategies
When it comes to paying down debt, Pyles says there are two popular strategies people can use:
The Debt Avalanche Method
The first is called the debt avalanche method.
“There’s one approach called the debt avalanche, where you’ve prioritized the debt with the highest interest rate first,” Pyles said.
This method focuses on mathematical efficiency — you’ll pay less in interest over time by tackling your most expensive debt first.
The Debt Snowball Method
The other option — the debt snowball method — takes a different approach.
“Focus on your smallest debts first … You gain momentum much like a snowball rolling down the hill,” Pyles said.
This strategy prioritizes psychological wins by eliminating smaller debts quickly, building motivation to tackle larger ones.
Keep It Simple and Sustainable
No matter which method you choose, Pyles said the key is keeping it simple and sustainable — not overcomplicating the process.
The most important factor isn’t which strategy you pick, but finding one you can actually stick with throughout the year. Small, consistent progress beats ambitious plans that fall apart by February.
Starting your financial reset now, before the new year officially begins, gives you a head start on building the habits that will carry you through 2026 and beyond.
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