Spent too much on vacations? Here’s how to manage holiday debt hangovers Spend

The holidays may be over, but for many Americans their financial impact remains. More than a third of consumers took out holiday debt late last year, racking up an average balance of $1,249 to pay for gifts, travel and entertainment, according to LendingTree’s holiday spending statistics.

In addition to using credit cards to pay for holiday celebrations this year, some Americans have turned to personal loans or buy-now, pay-later financing. If you’re among those facing a holiday spending hangover this month, follow these tips to get it under control:

Sometimes debt can feel overwhelming and lead to anxiety or additional stress. That’s normal, but you can’t change the past, so try to let go of all the negative emotions you spent in the past and focus on the actions you’re taking now and moving forward to fix the situation.

If being in debt makes you feel uncomfortable, pay attention. It can be a powerful tool to help you as you make financial choices in the future.

“It’s important to recognize that anxiety can cause overspending now, so you can take steps to prevent it from happening again and feel confident in the decisions you’ll make to prevent it from happening again,” Jeffrey Owen, Certified Financial Planner at Front : Porch Financial Advisory in Charlotte, North Carolina says:

Find out the total amount you owe and the minimum payments and interest rates for each account. From there, you can plan how to approach debt. Directing extra cash to the highest interest debt first will cost you the least in the long run, but it can also feel satisfying to pay off the smallest balance of debt and eliminate it entirely.

Once you’ve decided which approach you’re going to take, create a new budget that takes those payments into account. This may require a temporary reduction in spending in other areas. You may also want to switch to using cash and debit cards for now so you don’t add to existing balances while you pay them off.

Rob Greenman, CFP at Vista Capital Partners in Portland, Oregon, suggests writing your plan.

“If you write it down and have something that you can do methodically, you’re significantly more likely to achieve your goal,” he says. “If you don’t have a game plan, you’re likely to start a snowball.”

If you’ve cut your expenses as much as possible and still aren’t making a big dent in your payments, you may want to look for ways to earn extra income. Side gigs like driving, pet sitting, or selling items online can generate extra cash that helps you reach your debt repayment goals faster.

Now that you’ve figured out how to trim your budget and earn extra income, consider putting some of that extra cash (once your debt is paid off) into next year’s vacation fund. That way, by the time Black Friday rolls around, you’ll have extra cash and won’t have to go into debt to enjoy the season.