Key Takeaways
- Credit and debit card spending by household was up 2.4% in October, the strongest annual growth since early 2024, according to Bank of America's 2025 Consumer Checkpoint report.
- If you’re feeling pressured to spend more this holiday season, consider strategies and tools like debt consolidation, balance transfers, and budgeting apps before taking on more debt.
- Debt relief comes in several forms, but it typically involves paying off some of your debt for a fee or working with a credit counselor.
- If you can, gift yourself the present of less debt by saving money and paying off low-balance debt first.
With the end of the year fast approaching, the holiday spirit can tempt even the most miserly Scrooge to splurge on gifts for friends and loved ones. According to the 2025 Consumer Checkpoint study from Bank of America, credit and debit card spending was up 2.4% in October compared to the year before. In October 2024, it was up just 1.0% year over year.
For many people, holiday spending can add to an increasingly unmanageable burden. While you’re deciding how to make the holidays special for your loved ones, consider giving a gift to your finances in the form of debt relief, which can help you better manage your debt and help you pay it off faster.
How to Get Debt Relief
Debt relief comes in many forms. From working with a debt settlement company or a credit counselor to consolidating your debt with a new loan or balance-transfer credit card, you have several options. The top debt relief companies will work with your creditors to settle your debts for less than you owe. These fees range from 15% to 25% of the debt.
Debt Consolidation Loans
If you qualify, debt consolidation loans allow you to pay off multiple forms of current debt by taking out a loan that covers all or part of the aggregate balances. These loans can also help you simplify your finances and save you money if the interest rate on your debt consolidation loan is lower than the interest rates on the loans you’re paying off.
Credit Card Balance Transfers
Some financial institutions offer credit cards with a promotional period during which you can transfer all or part of your debt balance to the card and pay 0% interest for that time frame. Just be sure to pay this off before the promotional period ends and the APR goes up—it can be double digits.
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3 Tips for Budgeting for Holiday Spending
Because there are some risks involved with the three kinds of debt relief mentioned above—namely fees and potentially high interest rates—you may decide that budgeting works better for your finances. There are several ways to do that.
Open a High-Yield Savings Account
The best high-yield savings accounts pay 5.00% or more right now. And with the Fed cutting rates, banks have started to cut their rates, too, so these top APYs won’t be around forever.
Use a Budgeting App
Budgeting apps can help you manage your finances by tracking your spending and income across a variety of categories. Typically, a budgeting app syncs with your bank to automatically populate your budget with your spending and savings data. Budgeting is useful not because it shows you what you can’t spend but what you can, allowing you to use your cash in a more personally fulfilling way.
Pay Off Your Lowest Debts First
Sometimes called the snowball method, paying off your lowest balances first can help free up cash to spend on your loved ones for the holiday. Because you owe interest with every payment against your debt, paying off the balance early helps you avoid future interest. Not only will the snowball method save you money, but it could also boost your confidence as you watch your balances slowly melt away like the season’s first snow.