It's June. Your holiday decorations are long gone. But your credit card balance might still be carrying the ghost of Christmas past.
I know because I've been there. In 2020, I put $2,000 of holiday spending on a credit card. Gifts, travel, food, decorations. I told myself I'd pay it off in January. Then the furnace broke. Then the car needed tires. Then it was April, and I still owed $1,500. I ended up paying interest until August. That $2,000 cost me about $2,300.
I'm not alone. A 2025 survey found that over 40% of holiday shoppers are still paying off their credit card bills from the previous season in June. The average holiday debt is about $1,200. At 22% APR, paying the minimum adds $200-$300 in interest over the year.
Let me help you break the cycle. I'll share three client stories, a new approach to holiday budgeting, and a tool to keep you on track.
Story #1: The Family Who Planned in July
“Tom and Lisa” have two kids. In 2024, they started their holiday planning in July. They created a list of every gift recipient, estimated costs for food and travel, and totaled it: $2,500. Then they divided by 6 months (July to December) and saved $417 a month into a separate savings account. When December came, they had the cash. No credit cards. No stress.
They told me, “The hardest part was starting in July. It felt too early. But by November, we were so relieved.”
Story #2: The Couple Who Set Gift Limits
“Jen and Carlos” used to buy gifts for everyone: parents, siblings, nieces, nephews, coworkers, mail carrier. They spent $3,500 one year. They couldn't afford it. The next year, they had a family conversation. They suggested a $50 limit per person or a gift exchange (draw names). Some relatives were grumpy, but most agreed. Their spending dropped to $1,500. They saved $2,000.
Jen said, “I wish we'd done it years earlier. The gifts weren't bringing us joy. They were just stress.”
Story #3: The Single Mom Who Used a No‑Spend December
“Tasha” had $5,000 in credit card debt from previous holidays. She decided to break the cycle by having a no‑spend December. She told her family that she couldn't afford gifts that year. Instead, she baked cookies and made handmade cards. Her family loved them. She felt relieved. She used the money she would have spent to pay down her debt. By February, she was $500 lighter in debt.
That's the radical option. It's not for everyone, but it's a reminder that you can opt out of consumerism. Your loved ones will still love you.
The Hypothetical: If You Started Saving in July
Let's say you typically spend $2,000 on the holidays. If you start saving in July, you have 6 months to save. That's $334 per month. If you start in September, you have 4 months – $500 per month. If you wait until November, you have 2 months – $1,000 per month. Most people can't save $1,000 in two months, so they put it on credit cards. That's the trap.
Start early. Even $100 a month from July through December is $600. That's a lot of gifts, bought without debt.
How to Build a Holiday Budget That Works
- List every expense: Gifts, travel, food, decorations, cards, tips, wrapping paper. The little things add up.
- Set a total. Then work backward: divide by the number of months until November.
- Open a separate savings account. Name it "Holiday 2026." Automate transfers.
- Track your spending during the holidays. Use a notes app or spreadsheet. Stay accountable.
- Start planning for next year immediately after this year's holidays. Take advantage of after‑season sales for decorations and wrapping paper.
I will keep posting updates on this. Check back soon.
P.S. Cooper doesn't know what holidays are. Every day is a good day for him. Maybe that's the real lesson.
This article is for informational purposes. Holiday spending is personal; set boundaries that work for you.
Marcus Thompson
