Smart Ways to Tackle Debt Before the Holidays

The holiday season will be here before we know it—along with the extra spending that often comes with it. If you’re already feeling weighed down by debt, don’t worry. Now is the perfect time to get ahead of it. With a few smart strategies, you can reduce financial stress and start the new year on stronger footing.

Here are some practical ways to tackle debt before the holidays:

1. Make a Clear List of What You Owe

It may feel intimidating, but writing down your balances, interest rates, and minimum payments gives you a clear roadmap. Once you see it all laid out, you can prioritize which debts to pay down first and avoid feeling overwhelmed.

2. Prioritize High-Interest Debt

Credit cards and personal loans with high interest rates should be your top priority. Paying these down first saves you money in the long run and helps you break the cycle of “minimum payments” that never seem to shrink the balance.

3. Consider a Debt Consolidation Loan

Rolling multiple balances into a single loan with a lower interest rate can simplify payments and reduce stress. At Old Ocean FCU, we offer consolidation options designed to help members save money and pay down debt faster.

4. Cut Small Expenses Now

Those daily coffee runs, unused subscriptions, or frequent takeout meals can add up quickly. Even trimming $50–$100 from your monthly spending can free up money to put toward debt repayment.

5. Plan Ahead for Holiday Spending

Set a holiday budget now and start putting aside a little each week. When the season arrives, you’ll have funds ready to go—and you’ll avoid swiping your credit card for every purchase. Consider making homemade gifts or setting spending limits with family to keep costs in check.

6. Use the Snowball or Avalanche Method

If you’re looking for structure, try one of these two repayment strategies:

Snowball Method: Focus on paying off your smallest debt first for a quick win, then move on to the next.

Avalanche Method: Tackle the debt with the highest interest rate first to save more money in the long run.

Both strategies can work—the key is choosing one and sticking with it.

7. Ask for Guidance

Managing debt can feel overwhelming, but you don’t have to face it alone. Our team at Old Ocean Federal Credit Union can walk you through your options, whether it’s restructuring loans, consolidating debt, or simply helping you create a plan.

Taking control of debt now means more peace of mind—and more room in your budget for the things that matter most this holiday season.

👉 Want to explore your options? Visit our website or stop by the Old Ocean FCU office to speak with a lending expert about debt consolidation or repayment strategies today.