The holiday season is an exciting time, but it can also be very expensive.
If you're careless, festive gatherings, gifts, and travel may leave you in debt well into the new year.
A new survey by Accredited Debt Relief found that 67% of Gen Z have taken on or expect to take on holiday debt this year. And nearly 15% of Americans are still paying off last year's holiday debt.
Furthermore, 46% of Gen Z respondents have delayed or skipped rent or mortgage payments to afford holiday spending, compared with 28% of millennials, 14% of Gen X, and 3% of baby boomers.
"Holiday spending should never come at the expense of someone's financial stability, but these findings show just how difficult it can be to balance financial responsibilities with the social expectations and pressure to create a memorable holiday," said Bobbi Rebell, chief financial education adviser at Accredited Debt Relief in San Diego.
"Making tough choices around spending may feel like you're disappointing those you care about, but protecting your financial future needs to be non-negotiable."
If you're worried about holiday debt or keeping up with housing expenses, a bit of planning, dedication, and creativity can help you enjoy the season without putting your finances on the line.
Experts agree that your rent or mortgage and related bills should always come first, before you spend money on holiday extras.
"I've spent a lot of time helping people who have struggled to keep their homes. And I've seen how hard it can be to recover once things get out of control and they start falling behind on mortgage payments," says Casey Yontz, bankruptcy attorney at Yontz Law, PLLC in Phoenix.
One missed mortgage payment probably isn't going to get you into foreclosure, but it can be the beginning of a snowball of serious delinquency.
And depending on the terms of your loan, you can incur late fees on your missed payment.
Once that payment is 30 days late, it could get reported to credit bureaus and take a serious toll on your credit score. If you continue to fall behind, foreclosure is a possibility.
"It's true that under federal mortgage-servicing rules, foreclosure generally cannot begin until you are 120 days behind. But this doesn't mean you should treat these 120 days as extra time to spend money on something else, like holiday gifts or travel," Yontz explains.
According to Yontz, there's no holiday present that's worth putting your family's home at risk.
Howard Dvorkin, chairman at Debt.com in Fort Lauderdale, FL, shares those thoughts.
"What's worse: Someone thinking you cheaped out on their holiday gift? Or sleeping outside? Financially speaking, housing must be your top priority. I've yet to meet a client's friends and family who would want you to jeopardize your housing," says Dvorkin.
If you're still paying for the 2025 holidays, putting 2026 holiday expenses on another credit card is not the solution.
"Holiday debt is an indicator that your holiday spending is beyond your budget, and might be a little bit out of control," says Yontz.
Stop adding to it, and be honest with yourself about the math.
Look at your actual income versus expenses and debt numbers.
Ask yourself these questions: How much do I still owe? What's the interest rate? How much can I afford to pay each month after paying my living expenses?
"Try to prioritize higher-interest card debt first. Pay more than the minimum payments, because making minimum payments on credit cards is like throwing buckets of water on a five-alarm fire," say Yontz.
Dvorkin also recommends seeking professional help.
"Call a certified credit counselor and receive a free, in-depth debt analysis. With that in hand, you can consider all your options and make an informed choice," explains Dvorkin.
Depending on your situation, a debt management program may make sense. It can reduce your total credit card payments by up to half without any long-term damage to your credit score.
"It can also lower your interest rate to 10% or less—sometimes even zero. You pay a fee for a professional to set this up, but those fees are dwarfed by how much you save," Dvorkin adds.
Holiday spending should come out of whatever disposable income you have left after paying for your necessities like housing, gas, and groceries.
These tips can help you enjoy the holiday season while still keeping your finances in check:
You'll save more if you focus on what to buy than how you buy it. That's why a holiday budget is so important.
"Nothing evokes images of Scrooge more than sitting down with pen and paper and listing everything you'll buy. But we don't live in 'A Christmas Carol.' We have the technology to make holiday budgeting a breeze. There's no shortage of apps that act as busy little elves and do the work for you," say Dvorkin.
Inviting family members over for a no-cost game night will be far more memorable than buying each of them a shiny, new gadget.
"I just lost my mom this spring, and I can guarantee you that no present could ever be better than more time with her. Presents don't matter, people do, in my opinion," Yontz explains.
You'll notice a lot of companies that will let you buy something for the holidays and pay for it over time, especially if you're shopping online.
Unfortunately, they're not making your purchase any cheaper. In fact, you will probably end up paying more with interest and fees.
"They tempt you, and you pay for it. Don't fall down the buy now, pay later chimney of…
