7 Steps to Quickly Eliminate Your Holiday Debt

What's Hot

How to Cut the Cable TV Cord in 2017Family

8 Major Freebies and Discounts You Get With Amazon PrimeSave

8 Creative Ways to Clear ClutterAround The House

Study: People Who Curse Are More HonestFamily

This Free Software Brings Old Laptops Back to LifeMore

Pay $2 and Get Unlimited Wendy’s Frosty Treats in 2017Family

The 3 Golden Rules of Lending to Friends and FamilyBorrow

6 Reasons Why Savers Are Sexier Than SpendersCredit & Debt

Resolutions 2017: Save More Money Using 5 Simple TricksCredit & Debt

Porta-Potties for Presidential Inauguration Cause a StinkFamily

Protecting Trump Will Cost Taxpayers $35 MillionFamily

Tax Hacks 2017: Don’t Miss These 16 Often-Overlooked Tax BreaksTaxes

5 New Year’s Resolutions That Will Pay Off 10 Years From NowCollege

10 Simple Money Moves to Make Before the New YearFamily

The holiday season isn't really wrapped up until the bills are paid. These tips can help you tackle debt fast.

Christmas 2016 may now be past, but holiday credit card bills can haunt your present well into Christmas future.

Maybe you spent more than you planned on a last-minute gift or sprang for dinner for unexpected holiday guests. Decembers tend to bust the best budgets.

Let’s say you charged $500 in gifts and food over the holidays on a credit card with an 18 percent interest rate. If you pay only the minimum balance of $20 due each month, it will take you 42 months — or more than three additional Christmases — to be rid of this year’s holiday debt.

In that time, you will pay $674 including interest, making this year’s spree cost about one-third more than you initially spent. You can plug in your own numbers on an online payment calculator, like this one.

Try these seven post-holiday hacks to replenish savings and pay down debt.

1. Pay yourself first

Honcha / Shutterstock.comHoncha / Shutterstock.com

You’ve heard this a lot, but it’s not that hard to make your savings grow automatically. Set up automatic savings through payroll deduction at work. See if your employer allows you to directly deposit your paycheck to multiple accounts.

2. Track your money

VGstockstudio / Shutterstock.comVGstockstudio / Shutterstock.com

Use the tool provided by Money Talks News partner PowerWallet or a similar aggregating app that allows you to view all of your accounts in one place — checking, savings, retirement accounts and more. They let you set up budgets and track your spending by category.

3. Shop your pantry

maroke / Shutterstock.commaroke / Shutterstock.com

Got holiday leftovers? Get creative with what you’ve got on hand. Only shop for what you need fresh, like milk and produce. Use up the flour, canned goods other items first. Avoid last-minute fast-food outings, take lunch to work and do without a cappuccino.

4. Tackle credit card balances

Zivica Kerkez / Shutterstock.comZivica Kerkez / Shutterstock.com

Traditionally, financial advisers tell consumers to pay off their highest-interest loans first as their cost adds up the fastest. But this study by Blakeley McShane at the Kellogg School of Management at Northwestern University suggests that consumers who close more accounts — rather than reducing the size of a single account — are more likely to clear their remaining debt.

To help you figure out which approach is best for you, read  “Which Debt to Pay First — Lowest Balance or Highest APR?

5. Transfer a balance

Solomia Malovana / Shutterstock.comSolomia Malovana / Shutterstock.com

Shifting your balance to a 0.0 percent balance-transfer credit card might buy you some breathing room. Just remember that it’s likely not free. Transfers usually involve a fee. Still, a break on interest rates may ease the pain. We can help you find the credit card offer that best fits your life.

6. Return gifts

tcharts / Shutterstock.comtcharts / Shutterstock.com

You won’t be alone if you return a dud gift. If you have the receipt (or a gift receipt), bring it back to the store for cash or store credit. If possible, make sure the item is wrapped in its original packaging and keep tags on clothing and shoes. Click here to see our “12 Tips for Returning Gifts as Gracefully as Possible.

You also can post what you don’t want on eBay, Craigslist, apps such as OfferUp and neighborhood websites.

7. Turn gift cards into cash

Boryana Manzurova / Shutterstock.comBoryana Manzurova / Shutterstock.com

Online sites such as Cardpool and Raise will get you cash for your gift cards, with returns of up to around 92 percent of each card’s value. If you don’t want to wait, Coinstar — known for kiosks where you trade spare change for paper cash or gift cards — has set up hundreds of kiosks in grocery stores where you can exchange gift cards from more than 150 stores and restaurants for cash. Cash amounts vary by card, but the kiosks spit out vouchers that you take to the customer service counter for instant redemption.

How do you handle holiday debt? Share with us in comments or on our Facebook page.

Stacy Johnson

It's not the usual blah, blah, blah

I know... every site you visit wants you to subscribe to their newsletter. But our news and advice is actually worth reading! For 25 years, I've been making people richer without making their eyes glaze over. You'll be glad you did. I guarantee it!


Read Next: 8 Ways to Get Your FICO Score for Free

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.

Check Out Our Hottest Deals!

We're always adding new deals and coupons that'll save you big bucks. See the deals to the right and hundreds more in our Deals section.

Click here to explore 1,819 more deals!