Overspent This Holiday Season? 3 Easy Ways to Pay Down Debt
The holidays may be over but your budget could still be carrying the weight of all that spending. In fact, according to a LendingTree survey, more than a third of Americans (37%) racked up holiday debt this year, averaging $1,223 — up from $1,181 last year and the highest level since 2022.
If you’re feeling the financial bloat now that the celebrations have ended, here are some tools to help you start paying it down:
How to tackle your holiday debt
Balance transfer credit cards
If you’re feeling overwhelmed by high-interest holiday credit card debt, a balance transfer card could be a smart move. These cards allow you to transfer your existing debt to a new card with a 0% interest rate for a period of 12 to 21 months. That means you won’t be hit with extra interest while you work on paying down your debt. Just keep in mind there’s usually a small fee — around 3% to 5% of the amount you transfer — so it’s important to do the math before you decide. Balance transfer cards work best if you have a good credit score, typically 670 or higher, and can commit to paying off the balance before the promotional period ends.
The Chase Freedom Unlimited® gives you 15 months with a 0% introductory APR before a variable rate of 18.49% to 27.99% kicks in. You’ll also earn cash back on new purchases along the way. If you think you’ll need more time to pay things off, the Citi Simplicity® Card offers a longer 21-month 0% intro APR on balance transfers — one of the longest out there — and neither card comes with an annual fee.
The Chase Freedom Unlimited® is a no-annual-fee card that earns generous cash-back on everyday purchases and a lucrative welcome bonus.
- Valuable welcome bonus and high rewards rates
- Long intro APR for purchases and balance transfers
- No annual fee
- Has a foreign transaction fee
- Few rewarding ongoing benefits
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select’s editorial staff.
- Limited Time Offer: Earn a $300 Bonus after you spend $500 on purchases in your first 3 months from account opening
- Enjoy 5% cash back on travel purchased through Chase TravelSM, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more; 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and 1.5% on all other purchases.
- No minimum to redeem for cash back. You can choose to receive a statement credit or direct deposit into most U.S. checking and savings accounts. Cash Back rewards do not expire as long as your account is open!
- Enjoy 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 18.49% – 27.99%.
- No annual fee – You won’t have to pay an annual fee for all the great features that come with your Freedom Unlimited® card
- Keep tabs on your credit health, Chase Credit Journey helps you monitor your credit with free access to your latest score, alerts, and more.
- Member FDIC
Balance transfer fee
Intro fee of either $5 or 3% of the amount of each transfer, whichever is greater, in the first 60 days. After that, either $5 or 5% of the amount of each transfer, whichever is greater.
Foreign transaction fee
3% of each transaction in U.S. dollars
The Citi Simplicity® Card may not earn rewards, but it can still save you money due to its amazing intro-APR offers.
- One of the longest intro-APR offers for balance transfers
- No annual fee
- No rewards
- No welcome bonus
Debt consolidation loans
If you’re juggling multiple debts — on top of all of that holiday spending — like several credit card balances or a personal loan, a debt consolidation loan might be just what you need. It combines all your debts into one monthly payment, often with a lower interest rate than what you’re currently paying. These loans can range anywhere from $1,000 to $100,000, depending on your credit score, income and existing debts. They’re ideal if you want to streamline how you repay your debts, as you’d only have one loan and a single interest rate to juggle.
Avant offers loans ranging from $2,000 to $35,000 and is more flexible on credit requirements, with a minimum FICO score of 550. Upstart also offers debt consolidation loans starting at $1,000 and looks beyond your credit score when reviewing applications, factoring in things like work experience and education.
Avant Personal Loans
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Annual percentage rate (APR)
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Loan amounts
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Terms
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Credit needed
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Origination fee
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Early payoff penalty
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Late fee
Up to $25 after a 10-day grace period
Click here to see if you prequalify for a personal loan offer. Terms apply.
Pros
- Lends to applicants with poor credit
- No early payoff fee
- Can prequalify with a soft credit check
- Funding often available next day
- Late-payment grace period of 10 days
Cons
- Origination fee
- Potentially high interest
- No autopay discount
- No direct payments to creditors for debt consolidation
- No co-signers
Upstart Personal Loans
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Annual percentage rate (APR)
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Loan amounts
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Terms
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Credit needed
300 (but may also accept applicants with no credit history)
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Origination fee
0% to 12% of the target amount
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Early payoff penalty
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Late fee
5% of the last amount due or $15, whichever is greater
Pros
- Accept applicants with low or no credit
- No early payoff fees
- Most loans funded the next business day
Cons
- High late fees
- Origination fee of 0% to 10% of the target amount
- $10 fee for paper copies of loan agreement
Budgeting apps
Sometimes the hardest part of beating holiday debt is knowing where your money actually goes. Budgeting apps like Monarch or You Need A Budget (YNAB) can be a real game-changer. They connect to your bank accounts and credit cards, then track your spending automatically, which helps you build a budget that fits your lifestyle. These apps also send alerts if you’re about to overspend and break down your expenses visually, so you can spot where to cut back.
Monarch
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Cost
$8.33/month (billed $99.99 annually); $14.99/month (billed monthly) – get 50% off your first year with code CNBC50
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Free trial
7-day free trial is available before subscribing
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Standout features
Net worth tracker, investment portfolio tracking, goal creation and progress tracking, budgeting and expense tracking
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Categorizes your expenses
Yes, but users can modify
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Links to accounts
Yes, bank and credit cards, as well as IRAs, 401(k)s, mortgages and loans
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Availability
Offered in both the App Store (for iOS) and on Google Play (for Android); web version also offered
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Security features
Utilizes industry-leading security practices, according to Monarch’s website
Pros
- Easy-to-navigate money-tracking dashboard, including a net-worth tracker
- Easily syncs to your bank, credit cards and other financial accounts
- Users can add collaborators for free
- Seven-day free trial
Cons
- Subscription is pricier than competitors
- Recommendations in the “advice” tab are generic
You Need a Budget (YNAB)
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Cost
34-day free trial then $109 per year ($9.08 per month) or $14.99 per month (college students who provide proof of enrollment get 12 months free)
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Standout features
Instead of using traditional budgeting buckets, users allocate every dollar they earn to something (known as the “zero-based budgeting system” where no dollar is unaccounted for). Every dollar is assigned a “job,” whether it’s to go toward bills, savings, investments, etc.
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Categorizes your expenses
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Links to accounts
Yes, bank and credit cards
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Availability
Offered in both the App Store (for iOS) and on Google Play (for Android)
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Security features
Encrypted data, accredited data centers, third-party audits and more
Pros
- Offers a 34-day free trial, and college students get 12 months free
- Designed to help you get out of debt
- YNAB website claims average user saves $600 in their first two months and $6,000 in their first year
- Syncs to your bank accounts and credit cards
- Users can set goals, customize spending categories
- Offers educational resources, such as budgeting advice and free, live workshops
- Personal customer support
- Security features include encrypted data, accredited data centers, third-party audits and more
Cons
- Costs $109 per year or $14.99 per month
- Customer reviews note that it takes longer to set up than other apps
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