How to get rid of that holiday debt hangover

AP file

By Allison Linn

The holidays are over, but chances are there’s still one thing left to open: That credit card statement.

For many people, January can be a tough month, financially, because people are working to pay off the debt they accumulated over the holidays, or start saving for the next big splurge.

It’s also a time when many people vow to make better financial decisions in the new year.

The National Endowment for Financial Education, a nonprofit devoted to personal finance, has posted a list of tips for starting off the new year on good financial footing.

Our favorite: Assess your debt.

The first step to paying down your credit card debt is figuring out how much money you actually owe. That will help you set realistic spending and saving goals.

Another good one: Pick just one item to cut out of your budget to save money. Temporarily giving up that trip to the coffee shop or dinner out is a simple way to save money without changing your life all that much.

Click here for the full list of tips, and share your best simple money-saving tips in the comments section below.

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Did you take on credit card debt over the holidays?

 

Results with 37 short comments
Total of 3,341 votes - click on the "Display Comments" bar below to sort comments

35.2%
Yes, but I'll pay it off right away
1,177 votes
20.1%
Yes, and it will take a while to pay off
671 votes
44.7%
No
1,493 votes
Display Comments:
No

If you can't afford it NOW, you probably can't afford it. I used to carry a cc balance and then I wisend up. Debt is SLAVERY.

  • 9 votes
#1
 - ArchitectureGal
 - 1:04 pm EST on Tue Jan 3, 2012
No

The approval of friends and family is not worth much, certainly not worth going into debt for.

  • 4 votes
#2
 - Big Trouble
 - 1:39 pm EST on Tue Jan 3, 2012
No

I did not celebrate the holidays!

  • 3 votes
#3
 - John-A
 - 1:55 pm EST on Tue Jan 3, 2012
Yes, but I'll pay it off right away

Only used my AmEx and that's getting paid off today.

    #4
     - Annie-716754
     - 2:09 pm EST on Tue Jan 3, 2012
    No

    Cash is king.

    • 4 votes
    #5
     - zoobeaast
     - 2:15 pm EST on Tue Jan 3, 2012
    No

    I didn't use a credit card, but I live in the US so I'm deeper in debt anyway thanks to our "fearless leaders"

    • 1 vote
    #6
     - Recovering Democrat
     - 2:21 pm EST on Tue Jan 3, 2012
    No

    No debt is the best policy. I sleep at night.

    • 2 votes
    #7
     - bckrd1
     - 3:14 pm EST on Tue Jan 3, 2012
    No

    No holiday debt! Thank God! We finally learned to make small purchases throughout the year, and let good enough be good enough!

    • 2 votes
    #8
     - Illinois Mom
     - 3:28 pm EST on Tue Jan 3, 2012
    No

    I bought Amazon cards for the last 3 months from Giant Eagle. I have no new debt and earned 30 gal. of free gas from their rewards program

    • 1 vote
    #9
     - ZapTheSheep
     - 3:28 pm EST on Tue Jan 3, 2012
    No

    Saved through the year and paid cash

    • 2 votes
    #10
     - Jeff Jefferson-912478
     - 3:32 pm EST on Tue Jan 3, 2012
    Yes, but I'll pay it off right away

    Bought practically nothing. I'm done with the gift giving of X-mas.

    • 3 votes
    #11
     - FatSean
     - 3:39 pm EST on Tue Jan 3, 2012
    No

    no, I do not celebrate christmas

    • 1 vote
    #12
     - brunski-4898408
     - 3:42 pm EST on Tue Jan 3, 2012
    No

    paid with cash.

    • 1 vote
    #13
     - sucks-1729098
     - 3:45 pm EST on Tue Jan 3, 2012
    No

    Nope! I enroll in a Christmas Club account to save for the upcoming holidays! Works like a charm. Gifts paid for and no extra debt acquired

      #14
       - Maleko-1182530
       - 3:49 pm EST on Tue Jan 3, 2012
      No

      made a budget, set aside money each month and only spent that amount. No debt and a good way to tell my wife to stop spending.

      • 1 vote
      #15
       - jmb1510-2215291
       - 3:52 pm EST on Tue Jan 3, 2012
      No

      Purchased what I needed during the year for Christmas

        #16
         - chenz66
         - 4:00 pm EST on Tue Jan 3, 2012
        No

        Didn't spend more than we could afford.

        • 1 vote
        #17
         - economykiller
         - 4:17 pm EST on Tue Jan 3, 2012
        Yes, but I'll pay it off right away

        Stayed on budget w/ presents, but didn't count on the grocery bill. This year, everyone did potluck parties even at work, so hurt my wallet

          #18
           - Kat-2112378
           - 4:30 pm EST on Tue Jan 3, 2012
          No

          All your own fault for spending what you cannot afford, quit blaming retailers.

            #19
             - Mixman34
             - 5:30 pm EST on Tue Jan 3, 2012
            Yes, but I'll pay it off right away

            When you avg. 2% cash back using the credit card as I do, charging is worthwhile IF you pay off the entire statement balance.

              #20
               - The_Mick
               - 5:44 pm EST on Tue Jan 3, 2012
              Yes, but I'll pay it off right away

              all tapped out

                #21
                 - Yus
                 - 6:15 pm EST on Tue Jan 3, 2012
                No

                I stopped that madness years ago. Xmas should be about family and not buying needless trinkets that are disposed of within a month.

                  #22
                   - nwcynic
                   - 6:22 pm EST on Tue Jan 3, 2012
                  Yes, and it will take a while to pay off

                  Well, holidays were incidental - the debt is from unexpected dental work, but still have to be paying it off in the new year now.

                    #23
                     - tgr-3648310
                     - 6:31 pm EST on Tue Jan 3, 2012
                    No

                    Absolutely not. We only buy what we can afford. Debt is what gets this nation into trouble. Choosing to live debt free is FREEING!

                      #24
                       - Diva10
                       - 6:39 pm EST on Tue Jan 3, 2012
                      No

                      NOPE. Am in the transportation industry means holiday=lots overtime. You wanna loan?

                        #25
                         - John Smith-332906
                         - 7:05 pm EST on Tue Jan 3, 2012
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                        Discuss this post

                        Comment author avatarThe Beev-2396805

                        I get myself an Xmas gift every year. It's called NOT going into the red for "things."

                        • 1 vote
                        Reply#1 - Tue Jan 3, 2012 1:26 PM EST
                        Comment author avatarsummersk

                        Try to find satisfaction in paying debt, being debt free, consuming less, driving less, flying less, working less. Enjoy the smaller things in life. Google for "DEFLATIONARY CRASH" to understand why this is not the time to get ambitious about your economic expansion.

                        • 2 votes
                        #1.1 - Tue Jan 3, 2012 1:32 PM EST
                        Comment author avatarG. Bud

                        do you have a debt hangover?

                        Yea.. but it was worth it, I spent it all on booze...

                        • 1 vote
                        #1.2 - Tue Jan 3, 2012 5:45 PM EST
                        Reply
                        Comment author avatarMister-2154232

                        I doubt our loved ones want us to go into debt buying them material things. Truly the thought is worth more than any gift, especially one we can't afford.

                        • 2 votes
                        Reply#2 - Tue Jan 3, 2012 1:41 PM EST
                        Comment author avatarJ-636636

                        We paid everything, including our house, off, live within our means and save up for everything we need. That's why we'll be retiring at 55.

                        • 4 votes
                        Reply#3 - Tue Jan 3, 2012 2:13 PM EST
                        Comment author avatarRoad Warrior-252445

                        The real headache is coming with Obama asking for another $2 trillion increase in our debt ceiling so he can spend more of our children's money. The man is unpatriotic, the word Obama used against Bush for his spending.

                          Reply#4 - Tue Jan 3, 2012 3:08 PM EST
                          Comment author avatarRick-546746

                          662 billion for defense...300 billion more for national security...another trillion for SS. medicare and medicaid...which one is Obamas fault?

                          Like two wars, two tax cuts and a medicare prescription bill never happened

                          • 6 votes
                          #4.1 - Tue Jan 3, 2012 3:32 PM EST
                          Reply
                          Comment author avatarOneOfTheMany

                          My neighbor did the same things and she had just retired after 40 years as a nurse. House paid off, plenty of retirement money. Then, one week before xmas, a DUI driver ran a stop sign and killed her. Now her paid-for house sits empty and we are all in shock. Enjoy life while you can, for tomorrow you may die.

                          • 1 vote
                          Reply#5 - Tue Jan 3, 2012 3:11 PM EST
                          Comment author avatarJ-636636

                          My mother retired and was diagnosed with Alzheimers within 2 years. She died 8 years later and didn't remember anyone or anything. I'll take the quick death, we're all dying...some of us are just a little deader than others.

                            #5.1 - Tue Jan 3, 2012 3:36 PM EST
                            Reply
                            Comment author avatarOkeeboy

                            I gave up credit cards 4 years ago. Been a cash only guy since.

                            Amazing how much money I have to spend now that I don't have to pony up a percentage to the bank each month. Also, some merchants give you on-the-spot discounts for paying with cash. Mostly at gas stations.

                            If I don't have the cash right now, I save up until I do. If I can't do that, I don't really need it and life goes on. And yes, I have a cash stash for those little emergencies that pop up at the most inconvenient time.

                            I do carry a debit card on me so I can make on-line purchases, stay in motels, rent a car, and such. Life is good without credit!

                            • 3 votes
                            Reply#6 - Tue Jan 3, 2012 3:26 PM EST
                            Comment author avatarLindaD-3648199

                            I have a credit card only for extreme emergencies. I charge one thing under $50.00 every month and pay it off at the end of the month in order to continue to establish credit. However, I live by the rule that if I can't afford to pay cash for something, I don't need it. If I want something I save up for it and then go and pay cash for the item, even if it's big ticket stuff like furniture. It's nice to not have any debt. But it wasn't always this way. In my 20's credit cards were my best friend.

                            • 1 vote
                            Reply#7 - Tue Jan 3, 2012 4:10 PM EST
                            Comment author avatarRick in the Forest

                            The adults in our clan all agreed to confine Christmas gifts to those under 21 this year. It worked out extremely well and the adults simply enjoyed the company of each other. I have a feeling this will become the norm in our family from now on.

                              Reply#8 - Tue Jan 3, 2012 4:22 PM EST
                              Comment author avatarThe Beev-2396805

                              what does Dave Ramsey say..."the paid off mortgage replaces the BMW as the new status symbol."

                              Yah, I can dig that.

                                Reply#9 - Tue Jan 3, 2012 4:24 PM EST
                                Comment author avatarRick in the Forest

                                Beev> That's exactly what Dave Ramsey said. Nice to "see" ya again, dude.

                                  #9.1 - Tue Jan 3, 2012 5:23 PM EST
                                  Reply
                                  Comment author avatarThe_Mick

                                  Cash USED to be king. But now if you are getting an avg. 2% cash back for using your credit card as I do, you pay less IF you make sure to pay off the statement savings each month. And you end up paying no interest for what is effectively a month's loan. The stuff I bought just before Christmas I'll pay for -with no interest- on February 11. The thing you MUST do is keep tabs on how much you charge so the bill at the end of the statement cycle doesn't shock you.

                                    Reply#10 - Tue Jan 3, 2012 5:49 PM EST
                                    Comment author avatarAll That Is

                                    if we didnt have the money, no one got a gift just a dinner, a hug and free wine, that's enough. Too much commercialism around Christmas (yea I said Christmas, so there) when tis the season for family and friends not material things.

                                    • 1 vote
                                    Reply#11 - Tue Jan 3, 2012 7:08 PM EST
                                    Comment author avatarcityofangels1

                                    Having been a financial planner for more than 25 years, personal credit card debt remains the most common stumbling block to financial security.

                                      Reply#12 - Tue Jan 3, 2012 7:27 PM EST
                                      Comment author avatarellisDtripp25

                                      Been credit card free for 10 years now and I have more money to spend then ever in my life.That said but when I did have credit cards I messed it all up and it was all my fault.It was a hard lesson to learn but learn it I did.

                                      • 1 vote
                                      Reply#13 - Tue Jan 3, 2012 9:22 PM EST
                                      Comment author avatarRobbie-1584492

                                      Thank you for realizing that the credit card isn't the problem, it's the individual's decision to charge more than they have! I have used credit cards for everything for the past seven years, but I only spend what I can afford and pay the balance off each month. So now I have good credit and no credit card debt. I understand sometimes emergencies crop up that kill your saving and you have to charge a little more than you have at the moment, but a lot of people buy stuff that isn't essential and that they can't afford on credit cards and then complain that the debt and lost money in interest is the card company's fault, and that makes me crazy!

                                        #13.1 - Thu Jan 5, 2012 11:47 AM EST
                                        Reply
                                        Comment author avatarChopswell in BrrrOAK-2942536

                                        Debt free going on 3 years in March! House, cars, everything we have--PAID FOR! No debt-EVER-again!

                                        • 1 vote
                                        Reply#14 - Tue Jan 3, 2012 9:47 PM EST
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