Tips for Dealing with Financial Problems During the Holidays and Beyond

The holiday season often brings warmth, community, and celebration, but it can also create more financial pressure. Between gift-giving, travel, food costs, and social expectations, money can quickly become a source of stress instead of joy. Holiday spending can be tied to deeper emotional patterns, family expectations, and even a desire to prove worth or create the “perfect” Christmas. Let’s face it, most people struggle with finances at some point in their lives.

If you are dealing with financial problems, then you know the anguish that can come from financial instability. Staying up at night worrying about your financial future can be a lonely and terrifying place. But you’re not alone. According to a recent study, the average American has over a hundred thousand dollars in debt.

Mental and Emotional Impact

Debt doesn’t just affect our financial stability; it can weigh heavy on our mental and emotional well-being. Therapists see this deep impact regularly. Clients tell stories about how their excessive spending landed them in a painful, and powerless position of debt.

Many clients share the shame and discouragement that follow seasons of overspending, describing how quickly excitement can turn into a sense of despair later on. Some even speak of their financial situation feeling inescapable. Others tell about their insecurities in social situations because they can’t “keep up” or that life was “no fun” now that they have to skip the salon and dye their roots at home.

The thing about debt is that it often begins in moments that genuinely feel enjoyable. A dream vacation, a new car, or a special purchase can bring excitement, comfort, and even a sense of accomplishment. These experiences and luxuries can temporarily soothe insecurities we all carry and offer a feeling of confidence when we may not feel it inwardly. They can feed our egos as much as they drain our bank accounts.

But when the credit card is cut and the bank account has dwindled, the fun of spending must come to a halt. And that’s not the fun part. We can find ourselves trapped in a cycle of our own making, surrounded by things that no longer feel exciting and electronics that will soon be outdated. And when the urge to spend rises, it becomes even more frustrating because the resources simply aren’t there to satisfy anymore.

What the Bible Says About Money and Financial Problems

As we celebrate the birth of Jesus, the ultimate expression of God’s love, we’re reminded that God desires freedom for His people, not bondage. God, in His infinite wisdom, encourages us to stay out of debt because He knows the weight it places on our hearts and lives. In fact, the Bible warns us to avoid debt altogether. Proverbs 22:7 acknowledges the burden of debt and explains that if we borrow, we become servants to the lender, a truth that highlights how debt can subtly steal our peace.

The Bible also offers encouraging words and practical wisdom regarding the topic. Romans 13:6 calls us to work steadily and faithfully toward toward getting out of debt, and in His grace, we are called to extend others a generous heap of grace toward those who are indebted to us. Even though our creditors don’t always follow biblical principles regarding collection, in God’s wisdom, He invites us into a life of freedom, peace, and renewed hope.

Practical Steps to Get Out of Debt and Address Financial Problems

We trust that the Lord will help us to meet our basic needs, but that doesn’t mean that the human part of us isn’t up worrying at three a.m. And being told that you shouldn’t be in debt doesn’t help the anxiety you feel if you’re already knee-deep in financial problems. So, where do you go from here?

If you’re truly sick and tired of scraping by each month, there is real hope. The process won’t always feel good or be pleasant, but if you follow these tips for dealing with financial problems, you will find your way out of the financial pit and into a stronger, more secure future.

Pray

One of the simplest and most effective things you can do when your finances are askew is to pray. God wants to help you find peace and resolution. Take it one step at a time, leaning on His infinite wisdom and guidance every step of the way.

Ask for His wisdom in making decisions and seek His strength to overcome your fiscally irresponsible habits. Seek His peace and practical intervention in your situation and lean into His love during your difficult season.

Take Action

Take some practical steps toward controlling your financial situation by negotiating a lower interest rate on your debts. Some credit card companies will work with you if they know you are trying to lower your balance. You may also consider taking advantage of low or no-interest balance transfer offers. While this can be temporarily helpful, it is essential to have a plan to pay down the balance during the promotional period and before the high interest rates take effect.

Some banks will offer an introductory offer to new customers to transfer an existing balance. Be sure to read all the fine print before making this move, but if the conditions are acceptable, it could greatly reduce the amount of interest you are accruing.

Pay Off Your Smallest Debt First

If you have multiple credit cards or loans, pay off your smallest debt first. This may feel counterintuitive, as most people want to tackle their largest debt because it’s the one that scares them the most. But if you concentrate on paying down your smallest debt first you can soon eliminate it faster.

Then you will have more liquid cash to apply to your larger debts. This strategy will allow you to pay it off sooner than if you make minimum payments. This strategy is often credited to Dave Ramsey and his well-known approach to debt reduction.

Trim the Fat

If you don’t already keep track of your monthly expenses, it’s time to start! Keep track of every cent you spend for a few months to see where you are spending the most money. After you have the information in front of you, take a hard look at your spending.

Are you spending a lot of money on take-out or entertainment? Maybe you’re indulging in a few too many specialty coffees per month. Divide all your expenses into needs, such as basic foods, shelter, and utility bills, and wants like movies, clothing purchases, and consumable items.

Do you really need all those streaming services? Are you actively using the gym membership? Commit to eliminating all extemporaneous spending for a month and reassess. I’m confident you will see a significant increase in your bank account at the end of the month.

Look for Ways to Save on Necessities

Now that you’ve eliminated all the unnecessary expenses from your budget, look at your monthly bills for ways to save money. Consider making meals at home instead of going out as much. Give yourself a budget line item for takeout.

During the holidays, consider creative ways to save money, such as making thoughtful homemade gifts or cards. Small, intentional choices can ease financial pressure while still honoring the spirit of generosity. You can also look for savings in everyday necessities – compare grocery prices and take advantage of sales or coupon offers.

Increase Your Income

Sounds easy, right? Well, it may not be as easy as it sounds, but it’s doable. Seek a part-time job or freelance work on the weekend or after work. Sell unused clothing and other items from around your home at a garage sale or online or consider monetizing a hobby such as selling stock photos online or being a vendor at a local craft fair.

You might also want to take advantage of cash-back shopping apps that reward customers. Once you find a way to increase your income, commit to applying all your extra money to pay down the money you owe. This goes for any bonuses, birthday gifts, or found money. As tempting as it is to spend the special monetary surprises on treats, think about how much less stressed you would be if you had no debt.

You are Not Your Debt

In the end, being in debt doesn’t define you. You are defined by the living God who created you and who you follow. This is just a chapter in your life story that, with some perseverance and sacrifice, can have a beautiful and fruitful ending.

God cares about every part of your life, even your finances and financial problems. He can offer you wisdom and provide you with grace when you’re at your most vulnerable.

Don’t be afraid to reach out for support. A mental health therapist can help you understand your relationship with money and how to break unhealthy habits and replace them with lifestyle changes that will better your financial future and overall peace of mind. The counselors at our location are equipped to help. Call our office today.