Tackling Holiday Debt in the New Year
The holidays are a time of joy and celebration, but you may not be in a joyous mood after looking at your bank statements in January. The dramatic sales, along with the festive nature of the holidays makes it easy to swipe now and worry about the expenses later, but now that it’s January, later is here.
If this sounds familiar, you’re not alone. The good news is that with just a few practical steps and the right tools, you can regain control and start fresh in 2026. How? We have some tips!
Assess the Damage
The first step towards getting back on the path to financial freedom is taking stock of just how much damage the holidays did to your budget. Take the time to gather all of your financial documents and list every balance, interest rate, and minimum payments.
AbbyBank has many online banking tools that make it easy to see all of your accounts in one place, making this step a breeze.
Build a Realistic Budget
Once you’ve taken stock of how much debt you accrued over the holidays, it’s time to come up with a plan of action. Debt recovery is about more than paying off balances — it’s also about reducing stress and preventing yourself from sliding even deeper into debt.
Next, identify areas where you can cut back, such as subscriptions or memberships you no longer use.
We recommend using the online banking tools available through AbbyBank to track your spending and set limits to help keep your finances in order.
Prioritize High-Interest Debts
One of the most helpful things you can do is focus your energy on paying down debts that carry high interest rates. These are typically credit cards that you may be tempted to just make minimum payments on. If your budget allows, fight that temptation and make larger or more frequent payments on these debts, while making smaller payments on lower-interest loans if necessary.
Balance transfers can be a great way to simplify payments and lower your interest rates. See our options today.
Consolidate Debt
If you have debts in many different places, it can be difficult to stay on top of everything. This can lead to missed payments that only amplify the problem. If you have debts scattered over many different places, consider a personal loan to consolidate them into one predictable monthly payment.
Our team offers personal loan options designed to help you pay down debts faster and reduce stress. Talk to a Consumer Loan Officer today to find the right loan option for your situation.
Set Up Automatic Payments
Getting out of debt can seem challenging, but AbbyBank provides you with the tools you need to help make it manageable. An easy way to ensure your payments are made on time, every time, is to set up automatic payments through our eBanking services.
Plan Ahead for Next Season
The ultimate goal is not only to get out of debt, but to make sure the same issues don’t creep up next year. Don’t wait for the holidays to roll around before you start planning. Start the process today by opening a savings account.
AbbyBank offers Holiday Savings Accounts that are specifically designed to help you save throughout the year for the holidays and automatically pay out just in time for the holiday shopping rush.
Why AbbyBank?
Here at AbbyBank, we’re not just a bank — we’re your neighbors and friends. From credit cards with fraud protection to personal loans and savings accounts, we offer tools and local support to help you feel confident about your financial future. Contact our team or visit your local branch to start your financial reset today.
