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\u2018Tis the season for giving\u2026 and spending: How to pay off holiday debt in four months<\/h2>\n\n\n\n
Holiday gifts may be the expense on your mind, but add in holiday travel, seasonal entertainment, and the cost of decorating your home, and your holiday bill can surge. It\u2019s a huge chunk of change by all accounts, but it\u2019s not an insurmountable amount to pay off in four months.<\/p>\n\n\n\n
If you\u2019re ready to pay off your holiday debt for good, consider this monthly timeline that can leave you free of post-holiday debt by early May\u2014just in time for the spring flowers to bloom. Here\u2019s how to recover from holiday debt:<\/p>\n\n\n\n <\/p>\n\n\n\n Before you can tackle any problem (paying off holiday debt is no different) you must take stock of the situation. In this case, it\u2019s how much you owe. Start by tallying up each of your holiday debt balances including credit card bills, balances owed on store cards, and loans from family or friends.<\/p>\n\n\n\n Once you have your total debt amount, divide that figure by four to determine how much you need to pay monthly over the next 120 days.<\/p>\n\n\n\n The pain of paying off holiday debt so quickly might have you on edge. If that\u2019s the case, finding ways to earn more while reducing spending<\/a> could help. Picking up a part-time job or more hours with your current employer can make your journey out of debt easier.<\/p>\n\n\n\n To avoid prolonging holiday debt stress, focus on paying your bills off at the start of the year.<\/p>\n <\/blockquote>\n<\/div>\n\n\n By the time your third month hits, your holiday debt should be half gone. Congrats are in order, but don\u2019t celebrate too hard. If you want to emerge debt-free, you must stay the course.<\/p>\n\n\n\n Continue saving more and spending less as you finish out your holiday debt diet. Try not to slack off as you near the goal; keep moving forward, and keep saving as much as you can.<\/p>\n\n\n\n As month four approaches, only a quarter of your original holiday debt should remain. Now is the time to really buckle down and pay off that post-holiday debt. Continue your reduced spending plan as long as you can, and avoid falling back into old, costly habits. The finish line is in sight.<\/p>\n\n\n\n <\/p>\n\n\n\n After four months of hard work, you should be free of holiday debt and the burdens that come with it. What now, you ask?<\/p>\n\n\n\n If you want to avoid holiday debt next year, it\u2019s best to start planning now. Using last year\u2019s holiday spending as a baseline, start building a holiday savings<\/a> cushion right away. If you have five months left to save $1,200 for next year\u2019s holidays, for example, start saving $240 per month in a savings account ($1,200\/5 months = $240). That\u2019s about $60 per week.<\/p>\n\n\n\n If you plan early and consider your payment method, you won\u2019t have to pay off another round of holiday debt next year.<\/p>\n\n\n\n![\"A](\"https:\/\/www.discover.com\/online-banking\/banking-topics\/wp-content\/uploads\/2025\/12\/Holiday-Debt-Diet-Pay-Down-Debt-in-120-Days-or-Less_2-INARTICLE_NEW-scaled-e1681412982586.jpg\")
<\/figure>\n\n\n\nMonth one: Get started<\/h2>\n\n\n\n
Month one to-do list:<\/h3>\n\n\n\n
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\n <\/picture>\n<\/div>\n\n\n Month two: Ramp up your savings<\/h2>\n\n\n\n
Month two to-do list:<\/h3>\n\n\n\n
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Month three: Stay the course<\/h2>\n\n\n\n
Month three to-do list:<\/h3>\n\n\n\n
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Month four: Pay off holiday debt for good<\/h2>\n\n\n\n
Month four to-do list:<\/h3>\n\n\n\n
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<\/figure>\n\n\n\nPlan a debt-free holiday next year<\/h2>\n\n\n\n