Holiday credit card bills hit differently for many this year. With record-high credit card interest rates and compounding interest charges, holiday shopping expenses often snowball into overwhelming balances. When you account for gifts, gatherings and family travel, December’s routine credit card use can lead to a costly financial hangover.

The good news is you can get relief from that kind of debt before it spirals. We spoke with financial advisors and credit counseling experts about the most effective ways to dissolve seasonal debt. Here’s what they want you to know.

Find out more about your credit card debt relief options now.

5 moves to make if you’ve racked up credit card debt this holiday season

Regina McCann Hess, financial advisor and president of Forge Wealth Management, advises getting to the root of the problem before making any complex moves.

You can figure out how you racked up debt by looking at your spending and asking yourself the following questions:

• Do you have a budget? (If not, it’s time to create one)
• What have you been buying?
• Is your spending within your budget?

Taking stock of your credit is also critical. 

“We always recommend an updated budget and review credit reports to get an accurate look at the situation,” says Martin Lynch, president of the Financial Counseling Association of America (FCAA). He mentions holistic credit counseling produces better outcomes than any other approach for his clients.

Once you understand your spending patterns and have stopped adding new debt, consider these moves to squash your holiday bills:

1. Consider a balance transfer

“Opening a credit card with 0% APR can give you temporary relief from high-interest [holiday] debt,” notes Tripp Bennett, a financial advisor at Northwestern Mutual. When you take the balance transfer route, you only make payments toward reducing the principal amount (instead of paying interest).

But Lynch warns this strategy works best when you can “aggressively pay down balances during the 0% rate [period].” Balance transfer fees usually range from 3% to 5%, and the related card rates increase significantly after the promotional period ends.

Explore the credit card debt relief options that could benefit you today.

2. Explore debt consolidation loans

Debt consolidation simplifies holiday credit card payments while lowering your interest rate (if you qualify). Bennett explains this involves taking out a loan to combine multiple high-interest debts into a single pre-set monthly payment with a lower interest rate. It streamlines your payments, helping you become debt-free sooner.

For longer-term debt relief, consolidation can provide substantial savings. Credit card counseling agencies’ debt management plans can last as long as 72 months, according to Lynch. This lets people pay off their balances at much lower interest rates than what credit cards typically charge.

3. Adopt the debt snowball or avalanche method

With the debt snowball method, you tackle your smallest balances first. Hess is an advocate for this approach, noting that “when you [do this], you [get] a few wins early on and build your confidence.” 

The alternative is the debt avalanche method, which targets debts with the highest interest first. Either strategy can work well, but research both to choose an approach that fits your lifestyle.

4. Negotiate a lower interest rate with creditors

“Call your creditors [to] request a lower interest rate — it can only help you,” says Bennett. 

When you make the call to negotiate, be prepared with the right information. He suggests emphasizing your history of on-time payments or mentioning competitive offers from other credit card companies as leverage. The worst your creditor can say is no. But you might be surprised by how much you could save with a single phone call.

5. Look into a home equity line of credit (HELOC)

Hess points out that a HELOC could be promising for handling holiday debt if you own a home. It can offer a lower interest rate than what your creditor is charging you — and flexibility with repayment.

According to Hess, you can create a payment plan that extends beyond a year if needed. This gives you breathing room while reducing interest charges. But consider this option carefully, as it uses your home as collateral.

The bottom line

Getting rid of credit card debt requires acting now and having a clear long-term plan. To help you stay on track, Bennett recommends identifying your triggers for overspending and setting up automatic payments to guarantee consistency. And if managing debt is causing daily stress, debt assistance options can offer some structure and relief.

Start by researching debt relief companies and comparing their services. But don’t stop there — create a realistic budget that prevents future debt while building an emergency fund. Whether you tackle the debt alone or seek professional help, the key is taking control today before holiday bills become a year-round burden.

With lingering high prices from inflation, soaring interest rates on credit cards and loans and the pressure of holiday gifting upon us, cash is tight for many Americans.

It doesn’t have to be that way, though. 

According to experts, there are many ways you can free up funds going into the new year and ease that budgetary stress — even as the holidays close in. 

Find out how a debt relief program could free up more money in your budget.

4 simple ways to free up more money in your budget next year

Are you looking to free up money as we head into 2025? Here are four ways pros say to do it. 

Take a hard look at your expenses

If your budget is feeling tight, analyzing your expenditures is always a great place to start, or as Stephan Shipe, owner of Scholar Financial Advising, puts it, “perform a post-mortem on your 2024 expenses.” 

Start a spreadsheet, and make note of all you spent in the last couple of months — detailing the amount and what it went toward. 

“The easiest way to reduce expenses thoroughly is to evaluate monthly subscriptions and make sure you are not paying for services you no longer use,” says Curt Scott, president of Scott Financial Group. “Smartphone apps, streaming services, cell phone add-ons, gym and other memberships can add up very quickly and account for a substantial portion of someone’s disposable income.”

You can also look for new providers, like a new insurance company for your car or home insurance policies or a new internet or cable company, as they could offer lower pricing than what you’re currently paying. 

“I find that people typically forget that they have the ability to negotiate, too,” Shipe says. “Ask for discounts for bundling services or negotiate new rates with providers.”

Explore the debt relief options available to you here.

Refinance or consolidate your debts

If you have a lot of debt in your name, reducing what you pay on those debts can help free up cash, too.

One option is to refinance your debt, which would allow you to potentially reduce your interest rate and monthly payment. This may be an option on mortgages, car loans and even student loans.

After all, the three rate cuts that the Federal Reserve has conducted in 2024 have resulted in rates dropping by a full percentage point. 

“With this level of reduction, it may be in your financial interest to refinance any debts acquired prior,” says Troy Young, founder of Destiny Financial Group. 

Consolidating your debts is another strategy. This is when you use a lower-rate loan to pay off all your debts and card balances, essentially rolling them all into one lower monthly payment. 

“You can also explore using a balance transfer from one credit card — normally a high-interest credit card is 19%-plus — and transferring the balance to a credit card that allows 0% interest for a period of time,” says Jordan Mangaliman, founder of GoldLine Financial. “The 0% interest rate is typically valid for 6 to 12 months, which gives you more time to pay off your debt without any interest.”

Sell, sell, sell

You can also consider selling items you no longer use or, as Scott recommends, “items that new Christmas gifts can replace.”

“Reselling items has become a huge market,” Mangaliman says. “You can sell old items you may not need or use like watches, clothing, and even a car that you may not be using.”

Just make sure you’re realistic about what you’ll get from those sales, Scott says.

“While you won’t recoup 100% of the original cost, you may be able to get $0.30 on the dollar by selling items you no longer need,” Scott says. “This is a great way to make room for new toys, clean out the closet, and repurpose things you no longer need or use.”

Adjust your W-4

If you got a tax refund this year, you’re essentially “providing the government an interest-free loan,” Young says, and keeping less cash in your pockets throughout the year.

“If your refund in 2023 was, say, $1,200, on average, you loaned the government $100 per month,” Young says. “What could you do with an additional $100? If that refund is $3,000 you are looking at $250 per month.”

To prevent this in 2025, talk to your HR office and ask to adjust withholdings on your W-4 form. If you’re not sure how much of an adjustment to make, talk to your tax advisor. They can help you calculate the appropriate amount for your goals and tax liabilities. 

The bottom line

If you do manage to free up cash, Young says to make sure you’re careful about where you put those extra dollars.

“Don’t take that savings and spend it, consume it,” Young says. “Apply it towards debt elimination, a savings goal, an investment plan, or retirement.”

And if debts are what’s holding you back from your financial goals, explore debt relief options like debt settlement, debt consolidation or a debt management plan. Talking to a financial advisor or credit counselor can also help. 

A closer look at what police found at the Ramsey family’s Boulder, Colorado, home after their 6-year-old daughter JonBenét Ramsey was found bludgeoned and strangled in the basement on Dec. 26, 1996.

A mysterious ransom note

In the early morning hours of Dec. 26, 1996, Patsy Ramsey called 911 to report her 6-year-old daughter JonBenét missing, and found a rambling ransom note left inside their Boulder, Colorado, home.

The crime scene

Several hours later, JonBenét was found dead in the basement of the home. Police found no signs of a break-in.     

An unusual murder weapon

JonBenét had been bludgeoned in the head and strangled with this intricately made device known as a garrote.

More evidence at the scene

JonBenét’s body was wrapped in this white blanket, and her mouth was covered with duct tape.

One investigator’s theory

Retired homicide detective Lou Smit, who was hired to work on the case by the Boulder District Attorney and later worked for the Ramsey family, believed an intruder came into the Ramsey house and killed JonBenét.

The killer’s way in?

Smit believed the killer entered the basement through this window and used the suitcase to climb back out.

Evidence left behind?

Authorities found this rope in a bedroom close to JonBenét’s. The Ramseys said it did not belong to them.  

John Ramsey’s quest for answers

DNA recovered from JonBenét’s body and clothing comes from an unidentified male. Her father, John Ramsey, believes new technology can and should be used to figure out who it belongs to. He is calling for new testing of the garrote, suitcase, blanket and other items of evidence.

The current investigation

In November 2024, the Boulder Police Department said, “The assertion that there is viable evidence and leads we are not pursuing—to include DNA testing—is completely false.”

If you have information about the case, please call the Boulder Police Department at 303-441-1974 or email BouldersMostWanted@bouldercolorado.gov