A New Year is upon us. Now if you are like most Americans you will need to figure out how to pay off your holiday debts. Key findings show that consumers have spread more than Christmas cheer this holiday season; they also took on debt. In fact, nearly all Americans who took on holiday debt this season, did so with high interest credit or store cards. Both which carry interest rates at 20% or higher.

So what do they do now after all the presents have been unwrapped?

You’ve heard of Dasher and Dancer, but what about stress and regret? If they are new to you, you probably won’t like them very well. The chances of paying off the debt before the next holiday spending starts is something to stress about. The regret comes when reality sets in. Most of those who took on debt say they’re stressed about it, while also saying they regret spending as much as they did. Christmas traditions of exchanging gifts came with a higher price tag in 2024.

There’s a good chance Rudolf’s nose isn’t the only thing in the red after this holiday season. The fact is that buying has never been easier. If you have a credit card you can sit at home and rack up some pretty large purchases and not even realize it until the numbers on your statement are staring you in the face, and the finance charges are not the only reason. Inflation has driven up the cost which means you either have to cut back on gifts or take on more debt. While people sometimes cut back on spending to deal with higher prices, many may not want to look cheap during the holidays, so debts continue to rise.

Going into debt, especially Christmas debt, is not the way to spend your hard-earned cash. But this cycle of going into debt for presents and Christmas cheer isn’t going to end unless you decide you’ve had enough. And don’t forget summer vacations are coming up. Don’t let Christmas rob you of your summer fun! It’s hard to explain to kids that they can’t go on vacation because Santa brought them too many gifts.

In the U.S., According to Travel Panda the average vacation cost for a family of four in 2024 is about $7,936 for one week. Additionally, activities and entertainment, such as amusement parks or tours, can add another $500 to $1,000 to the total cost. Swiping that credit card is easy. It may even give you a little bit of joy. But, every transaction you make with that credit card will drag you further and further into debt. Cut that sucker up and only spend what you have. Maybe go to your bank and open up a Christmas/Vacation savings account, stick money into it each month and you’ll be ready and ahead of the game when the time rolls around. By November, you’ll be ready to get a head start on your shopping. And even if you can’t buy everything on your list, you’ll hardly notice. You’ll be too busy feeling relieved about not having to make payments next year. Without the high interest charges you’ll be way ahead of the game. Imagine no interest to pay! No risk of being hacked! And nothing to pay off the following year!

So, start saving now, by starting early, you’ll actually have the time and the energy to find the best deals out there. Your anxiety and stress levels will thank you!