MORTON (25News Now) – Holiday spending can linger long after decorations come down. According to a Lendingtree survey, 36% of Americans took on holiday debt in 2024, with balances averaging a little under $1,200.
Financial advisor Phil Cooper with 210 Financial said the best way to deal with it starts with a plan. After overspending during the holidays, January is the time to reset and take a hard look at your budget before emotions take over again.
“Have a plan before you even go out and go shopping,” Cooper said. “Know who you’re going to buy for, how much your budget is, and don’t overspend.”
Without a plan, he said emotions and marketing can drive decisions that don’t line up with real needs. Sales and limited time only deals can make purchases feel necessary, even when they’re not.
Cooper warned people to think beyond the holidays themselves.
“I tell people to protect the January you,” Cooper shared, explaining that the excitement of the season quickly fades once the bill comes back. “When the mail arrives and… there’s a credit card statement with a great big balance, you forgot all of the wonderful times of the holiday, and now you have to pay for it.”
When it comes to credit card debt, Cooper’s advice is to prioritize carefully.
“Look for fat in your budget,” he said, adding that you should focus on high-interest debt first. At the same time, Cooper stressed not falling behind on essential payments like rent or mortgage, car loans, and retirement contributions.
“You’re going to need those in the future, so prioritize your debt,” Cooper said.
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