Do you really want to go further in debt for the holidays?
The January bill
The holiday shopping starts before anyone says it has. A sale email on a Tuesday. A cart you meant to look at later. Nobody sits down and decides to borrow for the holidays. It happens one reasonable gift at a time.
That’s why I wanted to pass this along.
You may have seen a headline last week saying nearly half of Americans expect to borrow for holiday shopping. It comes from a survey by ICSC, a shopping center trade group, which asked 1,003 adults online in late September. 49% said they expect to borrow money to cover purchases they can’t pay for in full. And 23%, nearly one in four, expect to still be paying for this year’s holiday purchases in 2027.
Here’s the part the headline leaves out. These are plans, not receipts. Nobody has spent that money yet. A plan is still something you can change.
So is putting the holidays on a card really that bad? Not always. A card you pay off when the January bill comes is just a convenience. The trouble is the balance that’s still sitting there in February, and in March, and next fall, with interest adding to it the whole time. By then the gift is long unwrapped and you’re still paying for it.
If you’re feeling squeezed, you’re not alone. Half of the people in that survey said their debt will affect what they spend this year, and 47% expect the holidays to slow down paying off debt or saving.
The one thing I’d do before the first gift. Pick one number: how much you can pay off in full when the January statement comes. I’d write it where I’d see it, on my phone or on the fridge. Anything past that number isn’t really part of the gift budget anymore. It’s a loan, and you get to decide on purpose whether you want it.
That’s all. No spreadsheet. I know, putting a number on Christmas feels a little unfestive. But the people who love you would rather have you rested in January than still paying in 2027.
If you want to go deeper, Damon Day and I talked last December about saying no without guilt and starting a January Fund so next year is easier.
Anyway, I wanted to make sure you saw this before the sales really get going.
This year, is it cash only for the holidays, or will some of it go on a card? Share it in the comments so we can all learn from it. I read every comment.
If this was important to you, share it with someone you care about.
Picking that number now, before anything is in the cart, is a kind thing to do for whoever opens the January bill. That’s you. The holidays people remember are rarely about what things cost, and a plan made today is one less thing to carry into the new year.
— Steve
A longer video from me: Why I’m Afraid of Getting Monetized on YouTube. About 20 years ago my website made $28,000 a month from Google ads in its biggest months, and I didn’t control any of it. Why that still scares me, and the one question I’d ask about any check you depend on.
SEE A SCAM? SAY SOMETHING. If one has landed on you or someone you love, tell me at tips@getoutofdebt.org. The ones that can warn other people may show up here. Leave out account numbers and passwords.
If this was important to you, share it with someone you care about. It’s free at yourmoneyactually.com, and I don’t sell the list. The places I actually use for my own money, and what I get out of telling you, are on one page where they’ll always be.
This is what I’m telling friends like you over coffee. But remember, you do you.
I listen to you & Damon weekly. I filed bankruptcy last year and liked the idea of saving all year for Christmas. I have a good little savings for gifts/treats/games that I won’t have to stress about putting into a credit card. Moving forward I plan to do this yearly. Thanks for the tip.