How to Create a Plan to Tackle Holiday Debt

How to Create a Plan to Tackle Holiday Debt
January 14, 2025 Katherine Matina

It’s a brand-new year, but when it comes to debt, you likely weren’t able to have a fresh start in 2025. It’s too easy to get carried away with spending during the holiday season—between gifts, travel, and festive gatherings, expenses can add up quickly.

WalletHub reports that more than 50 percent of Americans are still paying off their holiday debt from 2023, which is about double the amount of people who were paying off 2022 debt in 2023.1 And this past holiday season likely put some folks even deeper into the red.

But if you find yourself facing holiday debt—new or old—don’t panic. The key to regaining control is to create a clear and actionable plan to pay it off. A structured approach will help you tackle your debt faster and ease financial stress.

Start by assessing the full scope of your debt. Gather all your bills, credit card statements, and any other outstanding balances. Note the amount owed, interest rates, and payment due dates.

From there, prioritize your debts. You could use the “snowball method,” which focuses on paying off the smallest debts first, or the “avalanche method,” which has you tackling debts with the highest interest rates to save money long-term.2 Whichever strategy you choose, commit to paying at least the minimum on all accounts to avoid additional fees.

Finally, make adjustments to your budget to free up more funds for repayments. Cut back on discretionary spending and redirect those savings toward your debt. Set up automatic payments to ensure consistency, and revisit your plan monthly to track progress and make adjustments if needed.

Taming holiday debt is entirely doable with the right plan and a little discipline—stick with it, and you’ll be able to pay down that holiday debt. If you have questions on how to best tackle your credit card debt that works for you, get in touch!

 

New Year, New Estate Plan

You know it. We know it. Estate planning is critical.

But it’s like with any other important thing—it’s easy to say it’s critical, but it’s not as easy to get started with this critical task.

And more and more people are avoiding this critical task, according the Caring.com. The site’s latest Wills and Estate Planning Study found a decrease in estate planning among older Americans and a 6 percent overall decline in estate planning. Plus, the study found that a vast majority—85 percent—of small business owners have outdated estate plans.3

You don’t want to be part of these statistics, right? Estate planning can help you be in control of who receives your assets after your death, it can protect you in case you have a life-altering medical emergency, and it can protect your beneficiaries from having to spend months—or even years—in probate court.

If you’re having a hard time getting started with estate planning, Carson Group recommends seven steps:4

 

1. Take inventory of your assets. Do you have property and homes? Vehicles or motorcycles? Art, jewelry or antiques? Savings, checking and retirement accounts? Insurance policies? Health savings accounts? A business? If you own any of these things, find out what their value is so you can figure out what you’d want to distribute in an estate plan.

2. Compare estate planning options. Specifically, evaluate whether you want a will or trust or both. A will can determine who gets your assets outright. A trust can have a clause designating who can manage your affairs if you’re not able to.

3. Identify beneficiaries. Figure out who you want to receive your assets—whether it’s your kids, grandkids, nieces, nephews or friends.

4. Identify your wishes for medical, end-of-life care and funeral plans. This is an emotional process, however, it’s essential to make these decisions now so you don’t leave your family in a lurch at a time when they will already be overwhelmed with grief and stress.

5. Connect with an estate planning attorney. Find an estate planning attorney to customize your estate plan while also ensuring it complies with the law. Connect your lawyer to your financial professional to ensure everybody is on the same page.

6. Revisit your estate plan periodically. Things change and it’s critical to revisit your estate plan when they do. Try to revisit your plan every three to five years, and especially when you have an event like a marriage, divorce, or a sale or purchase of a home, among others.

7. Find a trusted financial professional. If you don’t already work with a financial professional, you can find one who will put your needs first and help you make sure your financial and estate plans line up.

You have a goal for the legacy you want to leave. But without a solid estate plan, you might not get to that goal. Remember the words of French aviator and writer Antoine de Saint-Exupéry: “A goal without a plan is just a wish.”5

 

Maple Mustard Glazed Salmon Recipe

We all want to eat a little healthier at the beginning of the year. And if you’re looking for a show-stopping dish that’s simple, quick, healthy, and bursting with flavor, this maple mustard glazed salmon uses only five ingredients and takes just over 20 minutes to prepare. This recipe is perfect for impressing guests or elevating your weekly dinner rotation!6

What you’ll need:

      • One large salmon fillet, cut into 6 equal pieces.
      • 6 tablespoons butter
      • 3 tablespoons maple syrup (be sure to use a sweet, natural syrup. Honey also works as a substitute).
      • 2½ tablespoons grainy Dijon mustard
      • Soy sauce (opt for low sodium if preferred)
      • Tablespoon olive oil
      • (Optional) pepper

How you’ll make it:

      • Preheat the oven to 425℉ to get things toasty.
      • Make the glaze by whisking together melted butter, maple syrup, mustard, and soy sauce in a small bowl.
      • Prep the salmon by placing the fillets in a 9×13-inch baking dish that you’ve greased with the olive oil.
      • Drizzle the glaze generously over the salmon and sprinkle with pepper if desired.
      • Bake to perfection for 15–20 minutes, or until the salmon flakes easily with a fork.
      • Enjoy!

 

The Credit Card Debt Quiz

Credit card debt is on the rise. Do you know by how much and who owes the most? Let’s find out!

  1. What generation has the highest average credit card debt?7

a. The Silent Generation

b. Baby Boomers

c. Gen X

d. Gen Y (Millennials)

  1. What is the average credit card annual percentage rate (APR)?7

a. 5.91%

b. 10.91%

c. 12.91%

d. 15.91%

 

3.What is the average American household credit card debt?8

a. $7,499

b. $8,499

c. $9,499

d. $10,499

 

  1. True or false: As of November 2024, the total credit card debt in the U.S. is a record-high number—or the highest since the New York Fed began tracking in 1999:9

True

False

 

Quiz Answers:

    1. C – Gen X
    2. D – 15.91%
    3. A – $7,499
    4. True

 

Sources

Best regards,

 

DEAN, JACOBSON FINANCIAL SERVICES

 


Securities and Retirement Plan Consulting Program advisory services offered through LPL Financial, a Registered Investment Advisor, member FINRA/SIPC. Other advisory services and investment advice offered through Dean, Jacobson Financial Services, LLC, a Registered Investment Advisor, and separate entity from LPL Financial.

*The views expressed are offered through Dean, Jacobson Financial Services, and do not necessarily represent the opinions of the firm or its advisors, nor those of LPL Financial.  These views should not be construed as investment advice.  Please contact advisors at Dean, Jacobson Financial Services for specific questions or explanations on interpreting this information for your personal circumstances.
This material was prepared by Carson Coaching. Carson Coaching is not affiliated with the named broker/dealer or firm.
1 https://wallethub.com/blog/holiday-shopping-survey/53828
2 https://www.investopedia.com/articles/personal-finance/080716/debt-avalanche-vs-debt-snowball-which-best-you.asp
3 https://www.forbes.com/sites/matthewerskine/2024/03/20/the-danger-of-declining-estate-planning-rates/
4 https://www.carsonwealth.com/insights/blog/how-to-create-an-estate-plan/
5 https://quotationcelebration.wordpress.com/2018/06/04/a-goal-without-a-plan-is-just-a-wish-antoine-de-saint-exupery-2/
6 https://www.jocooks.com/recipes/maple-mustard-glazed-salmon/
7 https://www.cnbc.com/select/average-credit-card-debt-by-age/
8 https://www.newsnationnow.com/business/your-money/average-amount-credit-card-debt/
9 https://www.lendingtree.com/credit-cards/study/credit-card-debt-statistics/