As the decorations come down and the last of the holiday leftovers disappear, reality is starting to arrive in mailboxes across Southeastern Indiana — in the form of credit card bills.
After weeks of gift buying, travel, and celebrations, many people are now seeing just how much of the holidays ended up on plastic. Holiday spending in 2025 jumped between four and six percent compared to last year, adding up to an estimated $1.1 to $1.3 trillion nationwide. That increase didn’t come from spare cash alone. Roughly six in ten shoppers used credit cards to cover at least part of their holiday purchases.
For many households, that spending didn’t end when December did. Nearly half of credit card users carry a balance from month to month, which means interest charges quickly start stacking up. And without a plan in place, what feels manageable in December can become overwhelming by January.
A big part of the problem is preparation. About half of parents don’t set aside money throughout the year for holiday expenses, leaving little margin when gift lists grow or travel costs spike. Without savings to fall back on, short-term holiday spending can easily turn into long-term debt.
That debt can linger longer than many people expect. Making only minimum payments allows interest to quietly stretch repayment timelines, sometimes turning a $1,000 balance into several thousand dollars over time. And for some households, the problem isn’t even new — a significant number of shoppers were still paying off debt from the previous holiday season well into this year.
The good news is that it’s not too late to reset. If high balances are starting to feel heavy or cards are nearing their limits, the first step is simply getting organized. Writing down every balance, interest rate, and due date provides a clear picture of where things stand and makes it easier to build a realistic payoff plan.
Most financial experts recommend one of two approaches. The avalanche method focuses on paying down the highest-interest balances first, which can reduce total interest over time. The snowball method starts with the smallest balances, creating quick wins that help build momentum and motivation.
No matter which strategy you choose, the most important thing is not waiting. Addressing debt early makes it far more manageable and helps prevent a few weeks of holiday spending from turning into years of financial stress.