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Step 1
Be honest with yourself about just how bad your holiday debt is. Find all your receipts or credit card statements. Calculate exactly how much you owe for those holiday purchases.
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Step 2
Stop adding to the debt. If you are still adding to that debt by making those after-holiday purchases, then stop that quickly before you get yourself in even more trouble.
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Step 3
Make a plan on how you are going to pay off the holiday debt. The best way to pay off holiday debt is to pay it off as soon as possible. Figure out how much you can afford to pay toward your debt each month. You want to be as aggressive as you can, so make plans to cut back in order to get that debt paid in full.
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Step 4
Consider taking out a bank loan to pay off the holiday debt. If the debt is substantial, visit with your bank to see if you can get a loan with a low interest rate. Even if you get a bank loan, pay it off aggressively so you don't get charged with all that interest.
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Step 5
Create a list of ways that you can trim your budget until you get the holiday debt paid. Some quick ways to trim your budget are to cut back on dining out, vending machines, new clothes, travel, movies, prepackaged foods and any other new item that you don't really need.
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Step 6
Stick with your plan until you get the holiday debt paid. Try to stick to your goal and keep cutting back until you get the weight of the holiday debt off your shoulders.
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Step 7
Prepare for next holiday season so you don't make the same mistakes, again. Start saving now for next year's holiday purchases. Be creative and think of ways that you can save on gifts such as making something homemade for the person.
