This Is the Top Reason You Go Broke After the Holidays
This Is the Top Reason You Go Broke After the Holidays
Cindy Lamothe Tue, October 7, 2025 GOBankingRates
The holidays have a way of sneaking up on your budget. Between shopping for the perfect gifts, splurging on fancy dinners, decorating the house and booking last-minute travel, it all feels justified in the spirit of celebration.
But then January rolls around, the glitter fades and suddenly your bank account looks a little scarier than the holiday credit card bill itself. According to CNBC, Americans are “wired” to overspend during the holidays.
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If you’ve ever wondered why it feels so easy to go broke right after the holidays, you’re not alone. And while overspending on gifts plays a role, there’s another factor that harms your finances — and it might not be what you expect.
Credit Card Minimum Payments Eat Up Your Budget
If you’re paying for lots of holiday costs with credit cards, that could catch up with your budget come January. That could be especially the case if you’re making only minimum payments.
The spending feels fun in the moment, according to Ashley Akin, CPA, a tax consultant specializing in tax compliance services and senior contributor at CEP DC, but when the bills arrive in January, reality sets in.
“People often underestimate how fast interest adds up and how much of their monthly budget gets eaten by minimum payments,” he said.
What felt like a few extra gifts or one big trip can take months to pay off.
It’s Not Just About the Balance
Akin noted that the financial wreck happens because credit card debt is not just about the balance. “It pushes other expenses aside, creates stress and makes it harder to save,” she said.
If a family is already stretched thin, those extra bills can trigger late fees, overdrafts or borrowing from one card to pay another. That cycle is what breaks budgets.
The Way Out Starts Before the Season
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