During the holiday season, you’re likely making a list and checking it twice. But between gifts, travel, and festive celebrations, it’s easy to lose sight of holiday spending and your financial goals. This year, why not add “consolidate my debts” to your wish list?

The holidays may seem strange to focus on debt but hear us out. There are several reasons why this is a perfect opportunity to tackle your financial burdens and head into the new year feeling empowered.

Things that cause us to have financial stress during the holidays.

• Increased gift expectations: Social pressure and marketing campaigns often create unrealistic gift-giving expectations, leading to overspending, especially if you have a large circle of family and friends to shop for.
• Rising costs of gifts: Inflation and supply chain disruptions have driven up the cost of many popular gifts, making it more challenging to stay within budget.
• Travel expenses: Travel costs for visiting family and friends during the holidays can be significant, including airfare, car rentals, accommodations, and meals.
• Holiday events and activities: The season is filled with festive events and activities, often requiring ticket purchases, dining out, and additional spending.
• Holiday decorations: Purchasing Christmas trees, ornaments, lights, and other decorations can add up quickly.
• Holiday food and beverages: Grocery bills tend to rise due to the need for special holiday meals and festive treats.

These factors create a challenging financial environment for many consumers during the holidays. Many people rely on credit cards to cover holiday expenses, increasing higher interest rate debt. The average credit card interest rate is 27.81%, according to Forbes Advisor’s weekly credit card rates report.

Of course, the annual percentage rates (APR) you pay on your credit cards might not match up with the national average. Credit card APRs can vary widely based on several factors, from your credit score to your debt-to-income ratio and beyond. Things could snowball quickly, especially if you only make the minimum payments. It is crucial to be mindful of these pressures, adopt a realistic and budget-conscious approach to spending, and seek help, if necessary, to manage finances effectively.

Why should I consider consolidating my debts during the holidays?

If you find yourself asking if debt consolidation is right for you? The holidays present a unique opportunity to consolidate debt effectively for several reasons:

• Feeling overwhelmed by holiday spending and debt can trigger a sense of urgency to take action to manage your budget and bills better.
• Simplifying your debt can make you feel more financially secure and can reduce stress and anxiety, allowing you to fully embrace the festive spirit and enjoy time with loved ones.
• By combining debts into a single, manageable payment you may benefit from lower interest rates, a better credit score, and accrue long-term savings.
• Start the New Year with a clean financial slate.

How can TEGFCU help me consolidate my holiday debts?

TEG offers several products and services that help our members consolidate holiday debt.

• Balance transfer credit cards: Utilize our low 2.99% introductory APR for six months and 0% balance transfer fee to accelerate repayment.  Our credit card rate never goes above 18%.
• Debt consolidation loans: Secure a lower interest rate personal loan and combine your monthly payments into one convenient bill.

Additionally, TEG offers several resources for managing your holiday debt. Start achieving financial freedom in the new year by signing up for TEGFCU’s Free Credit Review. We will take a look at your debt and try to find ways to help you save money.

Here is an article from the Consumer Financial Protection Bureau consolidating credit card debt.

The bottom line.

The holidays offer a unique convergence of increased motivation, financial resources, strategic timing, enhanced organization, and psychological benefits that can make debt consolidation a highly effective and rewarding endeavor. By taking advantage of these factors, individuals can make significant progress toward financial stability and set themselves up for a successful New Year.