The Holiday Credit Card Debt Hangover is Real

Feeling a bit overwhelmed by holiday shopping credit card bills piling up? You’re definitely not alone!

According to the Federal Reserve Bank of New York, credit card debt hit a whopping $1.23 trillion in the third quarter of 2025. On average, holiday shoppers spent about $1,223. That’s a whole lot of money on a credit card with a high interest rate that’s tough to pay off with just the minimum each month.

To get a clearer picture, try the Bankrate Credit Card Pay Off Calculator. It can help you figure out how long it will take to pay off your credit card debt and how much interest you’ll end up paying over time. I recommend bookmarking it so you can easily refer to it when you’re tempted.

I’m going to call your current financial situation the “holiday spending hangover,” which can stick around for a while. But don’t worry, there are ways to ease the pressure and get the debt under control.

The key is to involve the whole family. We need to talk and make sure everyone is on the same page with the plan. A household budget should include everyone living together, including kids of all ages.

Why? Because they’ve also contributed to the spending and need to be part of the savings and budget. And remember, honesty is the best policy. We need to be open and upfront about the debt and how we got into it in the first place.

So, here’s how to get started: Have a set plan in place. Create a spreadsheet that shows your total monthly income, household bills (like housing, utilities, and groceries), and make sure to include all the holiday credit card debt.

Once you’ve decided how much you’ll pay each month on each bill and how much you’ll save, have a family meeting to talk about it. This way, the kids won’t feel overwhelmed.

Remember, you’re doing them a disservice by not including them and pretending everything is fine. They’re less likely to ask for money or buy them things, and you’ll feel better about saying no.

Takeaway: “A family that saves together, is saved from incurring unnecessary debt!”