The holiday season is a time of joy and generosity, but for many, it also brings financial strain. Spending to make the season special for loved ones can lead to overspending—and often, debt. Barry Bigelow from Great Waters Financial shares strategies for paying down holiday debt and starting the new year with financial confidence.

“Slow down,” says Bigelow. The first step is to stop adding to the problem by avoiding unnecessary purchases on credit. Taking a moment to assess where the debt came from can help you create a plan to address it.

Bigelow points to a line from Tennessee Ernie Ford’s folk song, 16 Tons: “I owe my soul to the company store.” Carrying debt can feel like being an indentured servant, impacting mental and physical health. “You don’t want your entire day-to-day life to revolve around paying off debt,” Bigelow cautions. Tackling debt is essential for financial freedom and peace of mind.

Bigelow recommends a three-step process:

1. Assess Your Finances
2. Take Inventory of Your Debt
3. Pick a Repayment Strategy

Bigelow emphasizes the importance of an emergency fund. “If you don’t have two nickels to rub together, you don’t have two nickels,” encouraging people to start small.

He says, aim for an initial goal of saving $500, then gradually build it up. With an emergency fund in place, unexpected expenses—like car repairs or medical bills—become manageable, reducing the need to rely on credit.

By addressing holiday debt, choosing a repayment strategy, and building an emergency fund, 2025 can be the year to feel more confident about your finances.