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5 Tips for Paying Off Holiday Debt

Woman sitting at a desk cluttered with bills.

The holidays can be an expensive time for many people. Buying gifts for everyone on your list or repairing any winter damage can cause you to go into debt. However, you don’t have to stay in debt until the next holiday season rolls around. Landmark National Bank has curated a list of tips on how to pay off holiday debt fast.

Don’t Overspend

One of the best holiday debt budgeting tips is to not spend out of your bounds. A great way to help yourself spend less is to bring as much cash as you want to spend with you on your holiday shopping trips. This helps you visualize your spending better than putting your purchases on credit cards. You can even set up a savings account that’s just designated for the holiday season and contribute to it all year long. 

Use Extra Income

Debt typically comes with interest and the longer you take to pay off holiday debt the more interest you’ll pay over time. The best way to pay off your holiday debt faster and pay the least amount of interest is to get rid of your debt as fast as possible. There are plenty of holiday debt repayment plans to help you pay a set amount each month, but much of that payment with go to interest before the base amount. While participating in a repayment plan, it’s best to add any extra income you can spare to your base payment. This will help you take down debt faster and save you money on interest in the long run.


If you have any other debt, such as a home or student loan, consolidation may be a great option to lower the total amount paid. When you consolidate, you’ll be taking whatever holiday debt you have, combining it with your other debt, and paying an interest rate that’s often lower than the interest rate of your individual loans. However, holiday debt consolidation only works if your consolidated loan has a lower interest rate.

Contact an associate from Landmark National Bank to see if consolidation is the best option for you.

Get a Personal Loan

Similar to how consolidation works, you can get a personal loan to lower your interest rate. Holiday debt loans are something you can request before making a large purchase for the holidays. It’ll likely be cheaper to pay your bank back rather than pay the debt off a credit card, as their interest rates tend to be more competitive. This takes some prior planning, but this could be a way to avoid crippling holiday debt.

Prioritize Interest Rates

The best way to eliminate debt is to prioritize your interest rates. This doesn’t always mean paying off the debt that comes to the highest total. If you have a $2,000 debt at a 2% interest rate and a $1,000 debt at a 5% interest rate, the $1,000 debt is compounding more interest meaning you will pay more in interest at the end of that loan over the $2,000 load at 2% interest. If you ever need Use this credit card interest rate calculator to see which debt you should pay off first.

Pay off Holiday Debt With Landmark National Bank

When it comes time to pay off holiday debt, it can be challenging to navigate. The experts at Landmark National Bank are equipped with the skills and tools to help you pay off holiday debt fast. Schedule a time to meet with an associate to find the best way to repay your holiday debt today!

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