debt-free christmas debt female hands holding coffee mug and pen christmas planning gift list

A Merry Christmas, Minus the Debt: Stress Less, Spend Less

/16 Comments/in , , /by Mary Hunt

Dreaming of a holiday season without financial regrets? You’re not alone. The holidays can bring joy, but if we’re not careful, they also bring debt. This year, let’s break the cycle of overspending. With simple planning, you can give without guilt and enjoy without the shadow of debt. Let’s get started on a truly debt-free Christmas together! Plus, join our 40-Day Christmas Challenge starting November 16th.

debt-free christmas debt female hands holding coffee mug and pen christmas planning gift list

The High Cost of Christmas Debt

If you are or ever have been plagued by credit card debt, I can nearly guarantee expenses related to Christmas have contributed greatly to that miserable situation. You know I’m right and unless we do something to stop that pattern, things are about to get much worse for you. Christmas is right around the corner.

The problem is procrastination. Face it, when it comes to Christmas, the longer you wait, the more you’ll spend. The opposite is also true. The sooner you get started, the less you’ll spend.

There are simple things you can do to stop procrastinating.

Get Ahead of Holiday Expenses: Start Planning Today

There’s no use in trying to ignore the fact that 2024 has been a tough year for all of us. And it’s not over yet!

Between inflation that’s pushed prices to new highs, ongoing concerns in healthcare and public safety, and the tough toll natural disasters have taken on communities—it’s no wonder stress levels are up. I’m the first to admit the easiest thing in the world would be to throw three sheets to the wind, decide that we deserve a little happiness in all of the chaos, and just go for it by using up all the credit limits available and try to overcome all we’ve been through. You know, give the kids the best Christmas of their lives—somehow feeling justified in believing, “We’ll deal with the debt later.”

These challenges aren’t going away overnight, and it’s understandable to want to give your family a joyful holiday season as a way to break from it all. But here’s the thing: splurging on Christmas with credit cards might bring some temporary happiness, but come January, the weight of debt can feel even heavier.

So, let’s do this a different way. Let’s start planning now, before the holiday pressures take over, to ensure a memorable Christmas without the post-holiday regrets. The secret? It’s all about getting a little proactive and building the season around what truly matters. When you start now, you’re creating a foundation for peace of mind. And that, my friend, might be the best gift of all.

Tips to Avoid Christmas Debt and Save Money

1. Get It on Paper

Start by jotting down your holiday plans. Seeing it all in black and white—gifts, events, and the budget—helps eliminate surprises and set clear, realistic boundaries for both time and money. When everything is written out, you’re no longer dealing with an overwhelming “holiday season”; you’re tackling a series of manageable pieces.

2. Map Out Your Timeline

Think about the time you have left, then break your holiday tasks into smaller, doable chunks. Even five minutes here and there can be a game-changer if you have a plan. Whether it’s jotting down gift ideas or setting up a savings plan, those small efforts build up and help you stay on track without scrambling last-minute.

3. Set Mini-Deadlines

Break down your holiday prep with tiny, achievable deadlines. For example, give yourself a week to finalize your gift list and another for budgeting. If you can, share these deadlines with a friend or family member to keep you on track—it’s amazing what a little accountability can do.

4. Simplify for Sanity

Resist the holiday urge to go all-out and focus on what’s truly meaningful to you and your family. Choose one or two traditions that bring joy and skip the rest. If you can minimize the overwhelm, you’ll enjoy the season so much more. Make room in your plans for what matters most: spending time with loved ones and making memories.

5. Keep It Real

The holidays are about so much more than gifts. There are decorations, festive outfits, events, travel expenses, and, of course, all that holiday food. The truth? The best memories don’t have a price tag. Look for ways to celebrate meaningfully without maxing out your budget—like a family movie night instead of a pricy outing, or a potluck gathering instead of a catered party. Reining in expectations will help you create a holiday you’ll love without the financial regret.

When you start early and keep things manageable, a debt-free Christmas doesn’t just become possible—it becomes your best gift to yourself and your family.

Let’s do this together

It’s been 33 years since I launched the Cheapskate Monthly newsletter, and a lot has changed since then—that’s an understatement if there ever was one! One thing, though, has stayed constant: credit card debt is like a virus that starts small, easy to ignore, and then slowly grows until it’s overwhelming. Before we know it, it can take over our lives and our peace of mind.

Instead of letting debt sneak up on us, let’s nip it in the bud now. Let’s make a commitment together to find smarter, more affordable ways to make this holiday season special—without the financial aftermath. How? I have a few ideas:

  1. Join the 40-Day Christmas Challenge
    The challenge kicks off Saturday, November 16th! It’s the perfect way to stay on track and make this holiday season one to remember—without the debt. Keep scrolling or click here for all the details →
  2. Stay Tuned to Everyday Cheapskate
    Open each EC newsletter and check out the daily posts. While not every post will be holiday-focused, every single one is designed to save you time and money. This will keep us inspired and motivated, and who knows? You might find just the tip you need to avoid a last-minute expense. Click here to get started for free →
  3. Join the Conversation
    Got a money-saving tip? Or maybe a challenge you’re working through? Share your ideas, questions, and victories in the comments. Let’s create a community where we’re learning and growing together. Consider joining our 40-Day Christmas Challenge private facebook group → 
  4. Spread the Word
    Love a post? Share it! Tell friends and family about EC and encourage them to join. Together, we’ll keep the spirit of saving and simplicity alive and well, and who knows? You might spark a few new saving buddies along the way.
  5. Stick close! I’m going to make sure you have all you need to reach your goals, with ideas and how-tos to make awesome gifts, finding alternatives to pricey options, and doing things differently. Need more ideas? I’m working feverishly on our 2024 Holiday Gift Idea Guides—not to encourage and nudge you into debt, but to give you ideas for gifts that will fit into your Holiday budget.

Ready for a Debt-Free Christmas? Join the 40-Day Christmas Challenge!

40 Day Christmas Challenge Red Transparent LogoDreaming of a stress-free holiday season—free from the burden of debt and financial regrets? I’ve got just the thing for you! Join the 40-Day Christmas Challenge, where we’ll work together to plan a Christmas that’s meaningful, affordable, and guilt-free.

Here’s how it works:

  • Daily Challenges: You’ll receive a simple, actionable task each day designed to help you stay on track with your holiday planning and budgeting.
  • Step-by-Step Guidance: We’ll break down everything from gift shopping to meal planning, helping you create a holiday that fits your budget—and your values.
  • Supportive Community: You won’t be alone on this journey. The Everyday Cheapskate community is here to share tips, offer encouragement, and celebrate each win, big or small.

Why join? This challenge is all about making your holiday season more joyful, meaningful, and affordable. No more stressing about credit card bills in January—just a season filled with cherished memories and peace of mind. Are you with me?

Click here to join the 40-Day Christmas Challenge →

 

Question: What’s your best tip for enjoying the holidays without spending a ton? Share your advice below.

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16 replies
  1. Cathie B says:

    Hi Mary, I was one of your earliest followers and have been debt free for m! Thank you for your wise advice. One thing I do each year for Christmas is make a huge batch of homemade spaghetti sauce and fill up mason jars with the sauce. I add a box of spaghetti, some grated parmasan cheese and a loaf of Italian bread. Put it all in a box or a basket and gift it to my daughters, granddaughters and friends ahead of Christmas. It frees them up from preparing a meal or two during the busy time before Christmas and is something everyone enjoys. And I can make it for a very reasonable cost.

    Reply
  2. Nancy says:

    Hi Mary, I have been reading your newsletter for years and I really enjoy all the tips. On January 1 2020, I set up an automatic transfer from my main credit union to a second credit union I belong to but don’t use that much of $60 per week ($12 per day 5 days per week). This is what I would normally spend on coffee and lunch from the Cafe at my office building. So instead of buying lunch everyday I started bringing my lunch, drank the free coffee in the breakroom and the $12 I would have spent, I started saving. So I am happy to report when I start my shopping around the middle of December, I will have $3,000. Not that I am going to spend every penny but it is a great feeling to know that I don’t have to use my credit cards at all. I will continue with this automatic transfer going forward. Just wanted to share my Christmas savings tip. =)

    Reply
  3. N says:

    I have followed you since your days of writing for Woman’s Day! I just recently threw out the articles that I had saved in plastic page protectors lol. All your information is now online so no need to have binders sitting around! Your information is timeless and just as useful as it was all those years ago. I look forward to your gift guide for 2020! Thank you.

    Reply
  4. teresa says:

    I have a question more so than advice. i am over 70 and make some really nice crafts! there are usually fairs, festivals, or flea markets where i can sell them! obviously, with the pandemic that has put a damper on making any money. I am not tech savvy enuf to put on any sites! any suggestions as to where i might sell my crafts! thanks

    Reply
  5. Patti Roy says:

    Hi Mary,
    LOVE, LOVE, LOVE your column, and share it often. For many years I have been teased about my “Christmas shopping”, but I would not change a thing! I shop all year ’round. If I see something now, that my sister would like for NEXT year, becasue this year is already covered!, I’ll buy it. I almost always have my shopping done by Labor Day, and usually wrap by Thanksgiving, at the latest. I save a fortune in a couple ways.
    First, as I see things in the store, or in a catalog, that makes me say, “OMG – Sue would love that! Or “I could see Mike using that!”, and it’s in my price range, I buy it, right then. I always check around to make sure it’s the best price, of course! But then their name get crossed off my list, as done.
    Second, I have family we do not usually see at Christmas time. If I see the people to whom I usually have to mail gifts, I give them the gifts to take home with them to open on Christmas. For instance, in September, my sister and her husband were here in Michigan, visiting from Denver. They drove. So I sent home 3 boxes of wrapped gifts with them, to Denver, because the shopping for her and her husband, and their 2 daughters and their familes was already done. They hauled them back, and I was saved the cost of shipping the presents for 10 people. Imagine the shipping costs on those packages, had I had to ship them all out to Colorado!
    PS: In soiteof the teasing, I have had family members caught off-guard, needing a baby gift, shower gift, unexpected birthday invitation, and they will call me….do you have something I could buy from your gift closet? They will actually come over to “shop!” And I have to say, I have a set, or 2, of ready-to-go gifts, say a baby girl set, just add a baby, and a baby boy set, all ready to go. As I see things, too inexpensive not to have on hand, I purchase it, and save it. I have a gift storage closet, and it has saved my own butt a few times as well. Why not buy a darling baby set when it is 90% off?

    Reply
  6. Deena Costley says:

    Help with gift ideas for those that don’t NEED anything? I’m part of a family the buys what they need when they need it. The sooner, the better Love your emails and the range of help topics you provide

    Reply
  7. Cathy down on the farm... says:

    Thank you, Mary, for your wonderful columns. I try and do Christmas shopping all year around. When I am out and about, which is rare, I pick up little things year around that I think my loved ones would love. I also listen to what people say that they want and need and it helps a lot. I’ve got my list running and have about 1/3 of it done. I have told my small family that I wish to be done shopping by December 1, so please get me your small wish list from Amazon and then wait to be surprised with what I do or don’t buy. If I do use my credit card I make sure it is paid off immediately. My goal is to not go into the New Year with Christmas debt and it has worked well so far. I usually buy only practical things, as well.

    Reply
  8. Elizabeth Ayers says:

    Thank you so much!! I have enjoyed your newsletter for years. This year I set up a holiday spending account through my State Employee Credit Union that auto drafts whatever amount I decide each month and then I can’t get to it. It is protected from me until my October paycheck when it gets deposited in my account. This is the first year ever that our Christmas will purchased completely with cash!!!! Thanks again for all you do!

    Reply
  9. Katrina says:

    We’ve had a rough year and want to draw names for Christmas and only buy 1 gift for the name we draw. The issue is my mother in law, she is demanding that Christmas be like it always is. Us kids and in laws need to be firm with her. We will tell her she and Dad can do what they want, but we are drawing names. Period. End of discussion. We don’t have the extra cash to buy gifts for everyone. This time she is not going to win!

    Reply
  11. Cheryl says:

    A friend of mine said they discussed it with their daughters re Thanksgiving and Christmas and decided since they couldn’t be together for either, they would take the money they would have spent on either and give to a worthy charity.

    Reply
  12. Victoria Jacobs says:

    Years ago when I needed to do holiday gift shopping (Christmas and Hanukkah) for my husband and I, both moms, and the people we supervised at our jobs, I began with a spreadsheet/list. I set up columns for name, ideas, and columns to check off for purchased, wrapped, and delivered/mailed. I included everything, such as gift exchanges for clubs and work, local charities, mail carrier/gardener/housekeeper, etc. When I would think of something someone might like I put the idea in the “Idea” column. If it was August and I found a great sale on toys or backpacks, I’d buy a few and put that down as “purchased” in a column for local charities. There was also a section for Christmas stockings for immediate family, where I cold write down ideas for smaller items.

    It became very useful to keep about 3 years of listings about what I’d given as a gift so that I didn’t give a similar item. It also became a great reminder when I would find something in mid-summer, buy it, and hide it. Instead of on occasion forgetting it, the item was there on the spreadsheet.

    Reply
  13. elaine says:

    I may sound like Scrooge, but the easiest and least expensive Christmas is to stop giving to relatives and just give to your church. We stopped the gift exchange years ago and took a lot of worry off our minds.

    Reply
  14. Karla says:

    Mary, I would really like to see a column in advance of the holidays about creative ideas for celebrating with family safely. With Covid exploding, we know it is not safe for most of us to meet with our families in person. The only thing that would make it safe is for all of us to have a negative test and not have any contact with anyone else until we have our family gathering and even that isn’t completely safe because of asymptomatic carriers. I know some people say to heck with the virus I want to be with my family, but for me I would rather be around next year and for the years to come. The sacrifice of one year of being around the table together is small in comparison to life itself. I am really bummed out, as I’m sure are many others of your readers. We know that there is technology, but in most cases that is a poor substitute. For those of us who live geographically closer to our families, can we get some ideas about how to celebrate in a place that has very cold winter weather and yet spend some time together in person? Thanks for your ideas.

    Reply
    • Katie French says:

      Karla, Check out “Unreported Truths about COVID-19 and Lockdowns: 2020-2021 Update and Examination of Lockdowns as a Strategy. Everything You Need to Know About COVID-19” Free on Amazon Kindle Unlimited, and see what you think. I hope this helps you to be able to enjoy your family this holiday.

      Reply

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