Managing Credit Card Debt in 2025: Don’t Let Holiday Spending Haunt You

David Peters
Oct 1
3 min read

The holiday season is almost here, and while it’s a time for fun, family, and festivities, it can also be a frightening time for your wallet. With credit card interest rates at record highs in 2025 and inflation still keeping everyday costs elevated, managing your balances before the holiday shopping season is more important than ever.

Here are some smart strategies to keep credit card debt from becoming a real financial fright this Halloween, and help you start the new year stronger.

1. Slay the Debt Monster Early

Kids in halloween costume, costume, halloween

If you’re carrying a balance, focus on paying it down before the holiday rush. Average holiday spending is expected to climb again in 2025, which means it’s easy to overspend if you’re not prepared. Set a holiday budget now—include everything from costumes and candy to travel and gifts—and stick to it.

2. Treat Yourself With Rewards

Cash back and rewards points can help ease the sting of rising prices. Instead of spending rewards on splurges, apply them to your balance. It’s like finding bonus candy in your trick-or-treat bag—small wins that add up.

3. Pay With Cash, Not Ghost Money

High interest rates in 2025 mean credit card balances grow faster than ever. Paying with cash (or debit) when possible helps you stay within your budget and avoids adding to your debt. Even setting aside a “holiday cash fund” each paycheck can keep your finances from getting haunted later.

4. Balance Transfers: Use the Magic Wisely

Promotional balance transfers can still be a great way to manage high-interest debt in 2025, but they’re not one-size-fits-all. Look for 0% intro offers, but check the fine print—balance transfer fees and shorter promo windows are more common now. Mark your calendar so you don’t get spooked when the regular rate kicks in.

5. Time Your Purchases

If you do need to put a big purchase on your card, be strategic. Knowing when your billing cycle closes can buy you extra time to pay it off without interest. In a year when every dollar matters, this simple trick can help you stretch your budget further.

Final Thoughts

Halloween may be all about scares, but your finances don’t have to be. In 2025, with interest rates high and costs rising, planning ahead is the best way to keep credit card debt from haunting your holiday season.

Make a budget, stick to your plan, and use smart strategies to manage debt now, so you can enjoy the holidays without fear.

Here’s to a financially stress-free holiday season (and a debt-free new year)!

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About the Author:

David Peters, CPA, CFP, ChFC, CLU, CPCU, CGMA, is the Founder and Owner of Peters Professional Education (petersprofessionaleducation.com) and Peters Tax Preparation & Consulting, PC. David Peters is also registered with the U.S. Securities and Exchange Commission (SEC) as an Investment Advisor Representative (IAR) with Peters Financial LLC. He regularly teaches courses in accounting, finance, insurance, financial planning, and ethics throughout the United States, and regularly contributes regularly to various professional publications, including NCACPA’s Interim Report, SCACPA’s CPA Report, and VSCPA’s Disclosures.

Required Disclosure:

The content presented above is for informational purposes only, is general in nature, and is not intended to and should not be relied upon or construed as financial, investment, or estate planning advice. This does not constitute an offer to sell or a solicitation to buy any security, investment or planning product. Past performance is not indicative of future results. All investments involve risk, including the possible loss of principal. Please consult with a financial advisor to assess your individual situation.

Financial and investment advisory services offered through Peters Financial LLC. Brokerage and custodial services offered through Charles Schwab Co. Inc., member FINRA and SIPC. Peters Financial LLC and Charles Schwab Co. Inc. are not affiliated. David Peters also offers tax services through Peters Tax Preparation & Consulting, PC. Peters Tax Preparation & Consulting, PC is not affiliated with Peters Financial LLC and clients or prospective clients are never obligated to use Peters Tax Preparation & Consulting, PC. as part of any financial planning or investment management services offered by Peters Financial LLC.