Holiday debt drags on wellness, profits, and impact. January is the best time to address it, says TrustPlus Senior Financial Coach Elise Nussbaum, “because that is when we have the best idea of what the holidays look like, spending-wise.”

Vanquish holiday debt among your workers to boost wellness, profits, and impact.

36% of shoppers took on holiday debt in 2024, averaging $1,181, reports CNBC.

For over half of them it was a surprise!

Only 44% expected to acquire those balances.

Most likely to take on debt, unsurprisingly: parents of young children, 48% of whom dipped into debt this holiday season.

So, if you’re an employer of workers with kids, roughly half of them are stressing out about how they’re going to pay down their holiday debt.

Financial stress from holiday debt: Bad for business, workers

This employee financial stress from holiday debt is bad for them, physically and mentally.

It’s also bad for you as an employer who cares about your workers’ well-being and your organization’s profits, productivity, and impact.

Worse, there’s a decent chance that their debt from this holiday season will linger, along with its pernicious effects on your people and your organization:

Nearly half of Americans still have debt from 2023 holidays, finds WalletHub.

Reduce debt from the holidays with January planning

But you can reduce debt from the holidays—and its associated financial stress—among your workers or avoid it entirely with some January planning.

In fact, there’s no better time to address holiday debt than in January, according to TrustPlus Senior Financial Coach Elise Nussbaum:

“My favorite time to talk about holiday spending is in January, because that is when we have the best idea of what the holidays look like, spending-wise.”

Given the workplace effects of financial stress, it’s in every employer’s interest to support your employees in paying off their holiday debt as part of your financial wellness benefits solution.

Not only that but paying down debt also happens to be a top financial resolution for 2025, according to a recent Bankrate survey.

So by supporting your workers in reducing their holiday debt, you’re also supporting them in achieving one of their top priorities, and setting them up for success to avoid holiday debt in 2025.

Win-win!

Here are Elise’s top tips for your workers, and for your financial wellness benefits solution, to reduce debt from holidays past and to avoid it in the future.

Elise’s vanquish holiday debt plan: Start in January for best results

Step 1: Reflect on your values and what’s important in your life

People can look back and really think about things that are still present for them when it comes to everything that holiday spending encompasses and how it fits in with their goals for the new year. It can be a very affirming exercise, because you are focusing on what is most important to you as a family and as an individual.

Step 2: Create 2025 budget (gifts, travel, food, activities): Divide by 12

Make a list of who you want to buy gifts for, attaching a dollar amount to each person on that list. With my TrustPlus financial coaching clients, we take that list of presents and add every food and travel experience you foresee, along with estimated costs…any number is going to be much smaller and more manageable when you divide it by 12 months.

Step 3: Create a plan to pay down debt, save for 2025 season

When it comes to paying down holiday debt, a 0% balance transfer credit card or debt consolidation loan are often the best options to save money on interest charges, for those who qualify.

For those who don’t, options include:

  • Negotiate with your credit card company: Creditors are often willing to accept a lower amount if they know you’re unlikely to be able to pay it all.
  • Choose a debt repayment strategy: With the “debt avalanche method,” you make extra payments to your card with the highest interest rate. With the “debt snowball method,” you pay extra money towards your smallest balance.
  • Explore a Debt Management Program: Debt Management Programs can lower your interest rates, waive pesky fees, and tweak your payment terms to something more manageable.

When it comes to saving for 2025 holiday spending, one of the goals for the new year might be setting up a dedicated savings account just for holiday spending. With a split direct deposit, a little piece of each paycheck goes into that account, which is dedicated to holiday spending.

It is much easier on the budget to say, okay, look, it’s January. All told, we spent $1,800 on holidays as a family. I can do $150 a month between now and next year. I can do $75 a paycheck between now and next year.

In other words, creating a holiday spending plan is going to be the key to success when the holidays and their associated expenses roll around.

Speak with TrustPlus about how to reduce debt and ease employee financial stress among my workers.