Personal Finance

7 ways to reset your money mindset after holiday overspending

The path out of holiday debt starts with changing how you think about money — not just how you spend it. Here are expert tips to get you started

ByDeborah Kearns

Published 14 hours ago

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The credit card statement arrives in late January, and suddenly the festive glow of the holidays fades to panic. Those spontaneous gift runs, the upgraded dinner reservations, the online purchases — they've all added up to an eye-popping sum.

You're not alone in this moment of financial reckoning.

According to a recent Harris Poll on behalf of the American Institute of CPAs, nearly half (47%)  of holiday spenders planned to take on debt this holiday season, with a majority (79%) anticipating they’d need to use credit cards to make purchases. More than half of holiday spenders said they're unlikely to pay their balances in full, and 17% expect repayment to take more than six months.

The path out of holiday debt starts not with a spreadsheet, but with your mindset. Here's how to break free from the shame spiral and build a sustainable plan for financial recovery.

1. Replace shame with self-compassion

Before you can tackle the debt itself, you need to address the emotions surrounding it. "If shame is too intense, we'll avoid [facing it]," explains Sarah Carr, a certified financial planner and certified financial therapist........

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