5 tips to help you avoid a financial holiday hangover

The holiday season is a time for joy, family and celebration — but it can also wreak havoc on your finances if you’re not careful. With more than $1.166 trillion in credit card debt, some Americans may be leaning over the sink with a financial holiday hangover if they don’t watch their wallet wisely. 

Many of us have experienced that post-holiday financial "hangover," where the joy of gift-giving is overshadowed by the harsh reality of overspending. This year, let’s break the cycle! 

Here are some practical and simple tips to help you enjoy the holidays without blowing your budget.

1. Set Up Spending Limits Right Now

It’s easy to get swept up in the excitement of the season, but the first step to avoiding financial regret is to establish clear spending limits. Start by setting a total dollar amount of what you can afford and then make a detailed list of everyone you plan to buy gifts for and assign a budget to each person. 

HOLIDAY SPENDING PROJECTED TO HIT NEW RECORD THIS YEAR

If your whole family is struggling, offer to do a gift exchange rather than buying a gift for everyone in the family.

Also, remember, the words "free" and "sale" are two of the most powerful marketing words this holiday season. Resist the temptation to buy items you don’t truly need. "Sale" doesn’t always equal "deal," especially if you buy an "extra" amount of something you won’t use.

2. Consider Using Frequent Flyer Miles and Reward Points

If you’ve been diligently racking up airline miles or credit card reward points, the holiday season is the perfect time to cash them in. 

Many programs offer great deals on gift cards — often at rates like 1,000 points for $10, sometimes even more. Recently, I cashed in 2,250 points for a $25 Ruth Chris’ Steakhouse gift card to get even more value out of the points. These can be a great way to give thoughtful presents without spending out of pocket.

Don’t overlook the clearance section when using points. On reward programs, including Chase and American Express, items go on sale or clearance, letting you stretch your points even further.

HOLIDAY SHOPPING MAY NOT BE MERRY FOR RETAILERS THIS YEAR

3. Get Cash For Last Year’s Gift Cards

Are you in the need of cold card cash? There are some great websites out there where you can take those old gift cards you never used and turn them into money you can use for the holiday season.

Raise.com and cardcash.com are two great websites you can use to sell your gift cards for money. Recently, a Macy’s $100 gift card was sold for $90.20. Remember, some of these gift cards can lose value if you don’t use them over time, and you also lose to inflation if it sits in your drawer at home for several years.

On the other side of the aisle, why bother paying $100 for a gift card at a local retail store when you can buy the cards at a discount? I just bought a BassPro gift card for someone that had a face value of $100 for $91.40! That’s almost a 10% savings for the same exact gift card.   

If your strategy this holiday season is to buy friends, family and relatives gift cards instead of physical gifts, you need to check out these websites.

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4. How Can A Camel Help You?

Shopping smart means knowing whether the price you see is really the best deal. With the help of apps including Priceblink, Honey and, for Amazon shoppers, Camel Camel Camel, you can either get the best price or ensure you are getting a discount for all the coupons that may exist out there before you check out.

Since so many people shop on Amazon, Camel Camel Camel can be helpful because it will track the items you want to buy this holiday season on Amazon and send you alerts when the price drops. 

Often, people purchase items on Amazon for higher prices because they succumb to impulse spending or clicking the "buy now" button before they shop the item or watch for better prices.

5. Cash Is King

One of the simplest yet most effective ways to avoid overspending is to pay with cash. By bringing only the amount you can afford to spend, you’ll eliminate the risk of impulse buys and racking up credit card debt.

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Free store credit cards, with their enticing discounts and deferred interest offers, may seem like a good idea, but they often come with high interest rates and hidden fees. Say no to opening new store cards and stick to your predetermined budget instead.  

Of course, buy now and pay later will be your biggest enemy, so avoid that at all costs.

Enjoy the Holidays Without Financial Stress

The holiday season doesn’t have to leave a lasting dent in your wallet. By following these tips, you’ll be able to celebrate in style while staying financially healthy. Remember, the best gifts don’t come with a hefty price tag — they come from thoughtfulness and genuine intention.

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