Holiday spending hangover? How to recover, guilt-free

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What’s the interest rate on each of your credit cards? How close are you to reaching your credit limit? When are your payments due throughout the month? What is your minimum monthly payment? Under which circumstances will you be charged extra fees or penalties? Most of this information is required to be included on your monthly statement, per regulations from the Consumer Financial Protection Bureau.

If that’s not an option, you’ll have to make a plan for how to deal with this debt in your life for the foreseeable future. Start by understanding the products you’re using.

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Are there pricy holiday traditions you can’t imagine living without? Create a spending fund to set aside money over the next 12 months, so you have what you need by the next holiday season. Or start looking for cheaper alternatives.

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Reflect on your holiday spending

Start by thinking about how you used money this past holiday season. Don’t bring judgment to this reflection; just take note of where your money went.

Then note how you feel about the ways you spent (or saved) money. Does gift-giving feel like an undue burden that doesn’t give you any joy? Does opting for no gifts leave you feeling like you missed out on a vital tradition? Do you revel in the opportunity to get out of town, or is travel an expensive hassle for your family?

Did you buy lots of presents or opt for a low or no-gift holiday? Did you DIY food and decor for holiday parties or order catering? Did you rack up travel costs or stay close to home?

Maybe you don’t want that lingering burden and you have the resources to eliminate it — go ahead and pay off your balances in full before they start to accrue interest.

This splurge-and-restrict pattern in spending is similar to what we see with post-holiday dieting — and it’s not healthy or effective in either case.

The holiday expenses of December and the fresh-start energy of January can combine to create a deep sense of financial guilt at the turn of a new year. You might be tempted to toggle from unfettered holiday spending to a restrictive mindset to punish or control yourself.

Knowing what you want and planning ahead can stop you getting swept up in the waves of obligation that come with holidays. Letting go of that obligation can help you create the holiday experience you want to have — and it can help you avoid suffering financial stress over traditions you don’t even want in your life.

So don’t ignore your debt — even if you’re worried about how you’ll handle it.

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