Christmas can bankrupt you. How do you avoid it?

Dear Chuck,

How can I have Christmas without putting it all on a credit card? January bills have stressed me out for three years in a row, and I’m resolved to avoid that this year!

Christmas Without Debt

Dear Christmas Without Debt,

The “Holiday Debt Hangover” is a cycle that can and should be broken. It is a vicious trap for you and millions of Americans. You don’t have a lot of time, so let’s look at some drastic measures.

Try a spending freeze

Ever heard of “No-Spend September”? It doesn’t matter that the month has already passed! Any time during the year works to help you reset your spending to save for a specific goal. Here’s how it works: pay your regular bills but cut out all discretionary spending. In other words, cover your needs, and curb your wants. You may be shocked at how much money you can save by carefully freezing all unnecessary spending.

Kiplinger reports that a one-month freeze is eye-opening. It is not easy, and you can burn out unless you modify spending around certain life situations. So, aim for flexibility in your effort to reach the goal you set. Keeping track of how much you save can motivate you to steward your finances with care in the months following. Besides being financially beneficial, you will be rewarded emotionally. If you continue spending with care, you will develop habits that can benefit you for a lifetime.

Before you start, ask God for wisdom and self-control. Ask Him to help you be content with what you have and depend on Him more during this time. Look for ways to give thanks for all that you have and all you can do, rather than complain about what you can’t do.

Do

• Write down and post how much you want to save by what date.
• Review credit card statements to see what spending you can cut.
• Compare and negotiate internet, phone, insurance, and other accounts.
• Drop some streaming services.
• Eat what’s in your pantry and freezer.
• Plan meals around grocery sales, not eating out.
• Carry snacks, lunch, and coffee to prevent impulse purchases.
• Before spending, ask: Is this a need or a want? Can I borrow it or buy it used?
• Record every dollar you spend to analyze at the end of the week.
• Ask someone to hold you accountable if you’re single.
• Get your spouse/family on board if you’re married.
• Deposit the savings in a safe place or an account that you won’t touch.
• Plan how you want to celebrate without the stress of bills in January!

Don’t

• Stop your giving — always be generous.
• Waste time on social media; it can give you the “wants.”
• Use credit cards, except for necessities.
• Compromise or make excuses.
• Compare or feel sorry for yourself.
• Give in to expectations.
• Give up or beat yourself up if you fail.
• Splurge when the freeze is over—continue to spend wisely.

Generate extra cash

Try selling personal items you no longer need. Do you have a storage unit that can be emptied with a weekend sale? What about listing some items on Facebook Marketplace that you no longer need? Or take on extra work. Seasonal jobs are in demand during the holidays.

Meanwhile

Develop a budget for Christmas shopping that helps you avoid spontaneous decisions. Remember that you are a steward (manager) of all God provides. You have been entrusted to wisely spend what you earn. The world has countless ways to get us to part with money, and our enemy enjoys putting Christians in financial bondage. The more interest we pay on debt, the less we can give to the Kingdom.

Also, we don’t need to spend like the world spends at Christmas. Materialism is a trap. It hurts our children and our marriages and distracts from the true meaning of the season. Instead of getting caught up in the pressure of the season, sit back and think through what really matters.

Research shows that experiences have more of an impact than gifts. Consider a card for each of your loved ones that promises to take them to their favorite destination or experience in the coming year. Discover ways you can spend time with friends and family and give what matters most: love expressed with quality time together.

Scripture

“So now faith, hope, and love abide, these three; but the greatest of these is love” (1 Corinthians 13:13 ESV).

Remember the poor, the lonely, and the isolated. Invite them into your Christmas plans. I can’t help but think of Dickens’ Christmas Carol. After experiencing three vivid dreams, Scrooge woke up a changed man. The realization that he was still alive filled him with overwhelming joy and led him to bless the Cratchit family and others abundantly. It costs nothing to spread Christ’s love and joy during this celebration of our Savior.

May each of us experience that kind of joy in the days ahead!

Here is some extra reading for more ideas on how to steward resources during the holidays:

If credit card debt is a financial burden for you in general, consider reaching out to Christian Credit Counselors. They are a trusted partner of Crown and are able to help consolidate debt and get you on the road to financial freedom.