Planning Ahead for a Debt-Free Holiday Season

September 23, 2026

I’ve been making a really good dent in my credit card debt, and it feels amazing to finally see those balances going down. I still have work to do, but I’m proud of the progress I’ve made and I’m starting to feel like I’m truly moving forward.

At the same time, I know the holidays will be here before I know it. Christmas can get expensive quickly, especially when you add up gifts, food, activities and all the little things that come up along the way. In the past, I haven’t always planned for those expenses early enough. I would tell myself I’d figure it out when the time came, which usually meant using a credit card.

This year, I want to do things differently.

I’m working with my financial counselor to create a realistic holiday budget. I don’t have the final number yet, but once we figure out what I can comfortably spend, we’re going to work backward and determine how much I need to save from each paycheck between now and December.

My goal is to have enough money set aside that I can enjoy Christmas without putting anything on a credit card or taking money from my regular savings. I’ve already opened a separate holiday savings account, so now I need to create a plan for consistently putting money into it.

This isn’t about taking the fun out of the holidays or making myself feel guilty every time I spend money. It’s about deciding ahead of time what I can afford and giving myself permission to spend within that amount.

One of the biggest things I’m learning through Project Money is that financial progress isn’t only about paying off old debt. It’s also about planning ahead so I don’t create new debt. Christmas comes every year, so it really shouldn’t feel like a surprise expense. Still, without a plan, it is easy to treat it like one.

I’ve worked hard to build momentum with my credit card debt, and I don’t want to lose that momentum in December. Having a holiday budget and saving toward it now will let me enjoy the season without worrying about the bill that might be waiting for me in January.

I know there will probably be temptations to spend more than I planned. There always seem to be last-minute gifts, extra activities or things that feel necessary in the moment. I’m hoping that having a clear budget will help me make better decisions and remind me that I don’t have to do everything or buy everything to make the holidays meaningful.

Going into January without a new credit card balance from Christmas would feel like a huge win. For me, that is the next step in this journey: continuing to pay down my debt while also getting better at planning for the expenses I know are coming. I’m not just trying to clean up past financial decisions anymore. I’m learning how to make different ones moving forward.