The holidays are meant to be joyful, but in reality, between gifts, travel, meals, and last-minute expenses, they often leave behind more debt than we ever planned for.

If you’re starting the new year feeling a little stretched, you’re not alone. Families across Lincoln, St. Charles, Pike, and Marion counties face the same challenge each year.

Luckily, you don’t have to overhaul your entire budget or give up long-term goals to get back on track. A few steady, realistic steps can help you pay down holiday debt while keeping everyday finances running smoothly.

1. Get a Clear Snapshot of What You Owe

Before choosing a strategy, take a moment to see the full picture. Make a simple list of:

  • Each balance
  • The interest rate
  • The minimum payment

This doesn’t need to be fancy, a note on your phone works just fine. Clarity is the first step toward progress.

Related: 5 Debt Traps That Could Be Costing You—and How to Avoid Them

2. Take a Short-Term Spending Pause

Freeing up extra cash doesn’t require permanent lifestyle changes. A short, intentional pause can make a big difference.

For the next 4–6 weeks, consider cutting back on:

  • Dining out
  • Streaming or subscription services
  • Impulse purchases
  • Extra entertainment

Even redirecting $50–$100 a week toward debt can shrink balances faster than expected.

3. Choose a Payoff Strategy That Works for You

Two proven methods help people stay consistent:

Snowball Method

  • Pay off the smallest balance first
  • Roll that payment into the next balance

Avalanche Method

  • Focus on the highest interest rate first
  • Saves more money over time

Both work — the best option is the one you’ll actually stick with.

4. Automate Smaller, Consistent Payments

Large lump-sum payments aren’t required to make progress. Smaller, frequent payments can:

  • Lower interest costs
  • Reduce your balance steadily
  • Remove the temptation to spend elsewhere

Even $20 or $30 at a time adds up when done consistently.

5. Avoid Adding New Debt While You Pay Down Old Debt

Progress can stall quickly if new balances creep in. A few simple habits can help:

  • Use a debit card instead of a credit card
  • Remove saved cards from online accounts
  • Plan ahead for upcoming expenses

If you do face an essential cost, such as a car repair, talk with your bank first. A predictable personal loan may be a better option than high-interest credit cards.

Staying Steady Takes Small, Repeatable Steps

Paying off holiday debt doesn’t require extreme measures. It takes a plan, a few smart adjustments, and consistency.

At Peoples Bank & Trust, we’re here to help you navigate decisions like these, whether you’re rebuilding after the holidays or planning ahead for the year.

If you’re unsure which approach fits your situation, stop by one of our local branches or talk with a banker who knows your community.

Peoples Bank & Trust Co.
Member FDIC, Equal Housing Lender
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