Santa Claus looks at receipts and is shocked by his holiday debt.

7 Ways To Minimize Your Holiday Debt This Year

The holiday season is here, and like every year, it can be expensive, leading to holiday debt.

Between bills, presents, family get-togethers, and more, there are more expenses during the holiday season than at any other time. So, what can you do to minimize your holiday debt this year? Let's find out!

How To Avoid Holiday Debt

1. Avoid Using Your Credit Card As Much As Possible

Credit cards are convenient, but they are also a huge contributor to holiday debt. You must remember that credit card purchases will also include interest, making everything you buy more expensive. Sometimes, the interest rate can be as high as 20%! Having everything cost 20% more is harmful to your wallet.

This is especially true near the holidays when people are inclined to buy many expensive things in a short window of time. Credit cards can seem like the solution, but you will soon find yourself in a bind. This is also why it's better to spread your gift buying throughout the year instead of buying everything in November or December.

2. Meaning Is More Important Than Price Tags

When it comes to gift giving, the sentimental value of a gift is more important than the price tag. You don't have to provide everyone on your gift list with a gift that costs hundreds of dollars.

Gifts should be affordable, as what matters most is how valuable the gift is to the recipient. Remember, the amount of money spent is not equivalent to how much you care about someone. Even small presents can be more than enough.

3. Always Compare Prices

You can find the same item from multiple retailers, especially if you shop online. To minimize your holiday debt, shop around and ensure you get the lowest price possible for the things you buy.

4. Set Up A Budget And Stick To It

A big part of minimizing holiday debt is knowing how much money you have to spend on unnecessary things. Many people don't know how much disposable income they have, and a budget helps with that.

To create your budget:

  • Total your income
  • Subtract your necessary expenses
  • Find out how much money you can afford to spend

Stick to your budget and avoid building up your holiday debt.

A piggy bank with a Santa hat reflects holiday debt.

5. Turn Get-Togethers Into A Group Effort

Many families get together for the holidays, and preparing a meal worthy of the season for your loved ones can get pretty expensive. It's a good idea to spread some of the burden around if other people are willing to help. Have guests bring special dishes or provide other items like napkins, plates, silverware, etc., if it's that kind of party.

The more everyone pitches in, the less holiday debt anyone will accrue. Plus, it helps everyone feel included!

6. Reuse Holiday Supplies

Sometimes, the small things make the holidays more costly than a single expensive gift.

Items that may invite debt include:

  • Gift wrap
  • Ribbons
  • Decorations
  • Packaging

These relatively small purchases can drive you into debt without warning. To save money, reuse these materials and keep them after the holiday season for use next year.

7. Cut Down On Travel

Many people travel for the holidays, but depending on how tight your finances are, you should consider how much traveling impacts your wallet. Gas is costly right now, after all.

To avoid holiday debt, you can:

  1. Limit your trips.
  2. Drive the most fuel-efficient vehicle you have.
  3. Ask your friends and family to visit you instead.

A mother embraces her daughter after resolving her holiday debt with a Tennessee flex loan

How Flex Loans Can Help You With Holiday Debt

Even if you follow the tips above, you may still feel overwhelmed by life's unexpected emergencies. In these urgent times of need, flex loans from Tennessee Title Loans, Inc. can help.

Flex loans provide a versatile and flexible way to help cover financial expenses. They are like having a temporary credit card but with much better interest rates.

Here's how they work: 

  • You gain access to a flexible line of cash.
  • You can borrow as little or as much as you need, up to $4,000 for a set period.
  • You only have to pay interest on the amount you borrow, not the entire credit line amount.

Once you pay back borrowed funds, that amount is again available for you to borrow.

Flex loans can be a difference maker for you this holiday, so consider reaching out to us here at Tennessee Title Loans, Inc. to get the money you need!

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.

Mason Roberts

Mason Roberts is a seasoned economics writer and blogger with a knack for breaking down and simply communicating the ever-changing world of finance. He is philosophically committed to the premise that financial knowledge equals financial freedom.