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Tips for Paying Down Holiday Debt Fast
If your January credit card statement made you wince, you’re not alone. Between gifts, travel, food, and festive extras, the holidays have a way of following us into the new year, right onto our balances.
The good news? A little strategy now can help you pay down holiday debt faster, save on interest, and start the year feeling more in control. Here are smart, realistic steps to take as those statements arrive.
1. Face the Numbers (Yes, All of Them)
The first step is awareness. Gather all your credit card statements and list:
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Current balances
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Interest rates
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Minimum payments
Seeing everything in one place may feel uncomfortable, but it’s the foundation for a clear plan, and often less overwhelming than avoiding it.
2. Choose a Paydown Strategy
Two popular methods can help you stay focused:
The Avalanche Method
Pay extra toward the card with the highest interest rate while making minimum payments on the rest. This saves the most money over time.
The Snowball Method
Pay off the smallest balance first, then roll that payment into the next card. This builds momentum and motivation.
The best method is the one you’ll stick with.
3. Redirect “Found” Money
January is a great time to reallocate cash. Look for opportunities like:
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Holiday gift cards you haven’t used
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End-of-year bonuses or tax refunds
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Pausing subscriptions you no longer need
Even an extra $50–$100 per month can significantly reduce how long you’re in debt.
5. Consider Consolidation Options
If you’re juggling multiple balances, consolidating debt into one payment, often at a lower interest rate, can simplify repayment and reduce total interest paid.
Cornerstone offers low-rate personal loans, as well as credit cards starting at 10.0% APR with no balance transfer fee, to help you pay of your holiday debt fast!
Cornerstone members may have pre-approved loan or credit card waiting for them in their Personalized Offers.
