How to Pay Off Holiday Debt Quickly in 2025

According to the National Retail Federation (NRF), Americans spend about $900 on holiday-related expenses. This average includes food, gifts, and decorations to make the season merry and bright. 

Unfortunately, this is more than most people can afford, which could lead to holiday debt. Learning about different ways to manage and repay this holiday debt can help reduce stress and get you back on track with your finances. 

Ways to pay off your holiday debt 

Create and stick to a budget 

A budget is a spending plan that considers your income and expenses and can help ensure your money goes where you need it to go. Creating a budget can help you get organized and will give you an overall visual of your finances. 

To account for your holiday debt, you’ll need to add debt payments to your budget. Treat these payments like your other bills that must be paid each month. 

Choose a debt payment strategy 

Paying off debt requires discipline, and it's vital to have an attack plan. Two common debt payment strategies you can use to pay off your holiday debt are the debt snowball and debt avalanche methods. 

With the debt snowball method, you pay off your smallest debts first. Then, you roll the amount you used to pay those first debts into paying off larger ones. The debt avalanche method prioritizes high-interest debts and then moves on to those with lower interest rates. 

Thinking about a debt management plan is vital. Planning your escape from holiday debt will put you back on track and get you closer to stress-free finances. 

Ask for help from friends and family 

If you’re struggling with holiday debt, you might ask friends and family for help. If you can agree on a loan amount with them, be sure to create a written agreement for repayment terms. Everyone needs to be on the same page so there aren’t any conflicts when it’s time to pay the money back. 

A written contract could aid in keeping personal relationships and loan repayments separate.

Look for a side gig 

Sometimes, your regular job doesn’t provide enough money to pay off extra expenses like holiday debt. If you find yourself in this position, you may want to think about getting a side gig. 

Adding to your income can be a great way to pay off debt, as you won’t need to worry about loan payments or paying someone back. Plus, many side gigs don’t require a set schedule, allowing you to work on your own terms. 

Some gigs that you may want to check out include: 

• Dog walking or pet sitting 
• Babysitting or nannying 
• Data entry clerks 
• Freelancing 
• Ridesharing 
• Food and grocery delivery 
• Clinical trials or health studies 
• Survey websites 

3 ways to manage holiday debt 

Even with a solid plan in place, you may find it difficult to pay off holiday debt quickly. Debt consolidation could be a smart move, especially if you're juggling multiple payments and want to simplify your repayment strategy. 

Apply for a balance transfer card 

With this type of credit card, you transfer one or more balances from existing cards to a new card. 

This option can help you avoid paying interest for a promotional period. The interest rate typically starts at a promotional 0% for a specified amount of time. Then, the card’s standard interest rate will kick in. If you know you’ll be able to pay off your holiday debt before the promo period ends, a balance transfer card may make sense for your financial situation. 

Open a Line of Credit 

Lines of Credit are types of loans that work similarly to credit cards in that you’re approved for a maximum borrowing amount. You can withdraw funds up to this credit limit, and you’ll pay interest on what you use. Depending on how much you’re approved for, this could allow you to pay off multiple holiday debts so you can focus on a single payment. 

Take out a cash loan 

When used wisely, a Cash Advance could help you avoid costly late fees or missed payments on existing holiday debt. Our application process is easy, we offer same-day funding, and you don’t need good credit to qualify. Just be sure you can afford to repay the loan in full on your next payday. 

Start paying off your holiday debt today 

Holiday debt doesn’t need to be overwhelming. With some financial planning and the right repayment strategy, you can get a handle on debt any time of year.