Should You Consider Applying for Debt Relief Before the Holidays This Year?

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. If you already have a large amount of credit card debt, the best thing you can gift yourself this holiday season is the act of debt relief and paying down your debt instead of adding to it.Westend61 / Getty Images 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. 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...

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