Blog

By: Christina Sweet, AVP Senior Loan Officer

The holiday season can be magical, filled with family, friends, and celebrations. But for many, the bills don’t stop when the gifts are unwrapped. According to a recent survey by NerdWallet, nearly one-third of 2024 holiday shoppers who used credit cards still haven’t paid off those balances.

If that sounds familiar, you’re not alone. The good news is that you don’t have to stay stuck in holiday debt. At Finger Lakes Federal Credit Union, we believe in helping members regain control. Below is a step-by-step guide to consolidating holiday debt, with practical advice, caution, and tools to help you head into the new year financially stronger.

Why Holiday Debt Lingers & Why It Matters

Holiday Spending Often Leads to High-Interest Balances

• According to a survey by LendingTree, 36% of Americans took on holiday-related debt, with the average holiday debt at about $1,181.
• Many of those balances get placed on credit cards which typically carry some of the highest interest rates you’ll encounter. Paying only the minimum each month can mean you continue paying long after the decorations come down.

Lingering Debt = Long-Term Financial Stress

• It’s not uncommon for people to still be paying off holiday-related credit by mid- or late-year. That’s debt that drags on savings, interferes with other goals (like emergency funds, home improvements, or investments), and adds up in interest.
• Carrying lingering debt may also interfere with future borrowing, credit utilization, and overall financial flexibility.

The extra weight of holiday debt can stretch out budgets, sacrifice savings, and even delay bigger plans like buying a home, saving for college, or building retirement funds.

What is Debt Consolidation & How Can It Help?

Debt consolidation means combining multiple high-interest debts (like credit cards, store cards, or multiple small loans) into a single loan — ideally with a lower, fixed rate and fixed payment.

Benefits can include:

• Lower interest rate (depending on your loan)
• A predictable, fixed monthly payment
• Easier budgeting (just one payment to track)
• Faster payoff time — if you stick with the plan

That’s why, for many people post-holidays, a consolidation plan is a smart and sometimes lifesaving first step toward financial reset.

Why FLFCU’s Debt Consolidation Loan Is a Good Fit

At FLFCU, we offer a Debt Consolidation Loan designed for exactly this kind of financial reset.

Here’s what we offer:

• Borrow up to $15,000.
• Flexible terms — up to 60 months, to give breathing room for repayment.
• Fixed rate and fixed payment — no surprises, easier budgeting.
• No prepayment penalties — if you pay off early, no extra cost.

Plus, we also offer alternatives if the loan isn’t the right fit:

• A balance transfer option on a FLFCU VISA credit card — with no balance transfer fee, which many cards charge.
• For homeowners with sufficient equity, a Home Equity Line of Credit (HELOC) which may offer even lower rates.

Finally, FLFCU values member security and peace of mind. The loan includes optional credit-life or credit-disability insurance so that if illness or hardship strikes, your loved ones aren’t burdened with the remaining debt.

How to Decide: Is Debt Consolidation Right for YOU?

Debt consolidation is powerful — but it’s most effective when used wisely. Here are key questions to ask before applying:

If you answer “yes” to most — consolidation might be a good step. If not, consider pairing it with budgeting support or reducing spending first.

Step-by-Step: How to Build Your Consolidation Plan

Here’s a roadmap for turning your debt load into a manageable payoff strategy:

1. Make a full list of your debt

• Include credit card balances, store cards, personal loans, any high-interest balances.
• Write down balances, interest rates (APR), and minimum monthly payments.

2. Calculate your total monthly debt payments

• This helps you compare what you pay now vs. what you might pay under a consolidated loan.

3. Use a loan calculator

• On FLFCU’s website, try the “Loan Calculator” to estimate monthly payment and total interest under a consolidation loan.

4. Compare vs. existing payments

• If your consolidated payment is lower — or the same but pays down principal faster — it could save you money in the long run.

5. Apply for the loan (or balance transfer / HELOC)

• Reach out to a FLFCU Loan Officer to discuss terms — including the optional credit-life or disability insurance.

6. Commit to a repayment plan

• Stick with the fixed payment. Avoid adding new high-interest debt.
• Consider small extra payments when possible — no prepayment penalty means every extra dollar speeds up payoff.

7. Monitor and adjust

• Re-evaluate periodically. If budget changes (income increases, expenses drop), you might pay down faster.
• Refrain from using freed-up credit limit on cards — treat them as tools, not spending enablers.

What to Watch Out For — Common Mistakes & How to Avoid Them

Debt consolidation is helpful — but only if used correctly. Watch out for:

• Running up new credit-card balances after consolidating — which just creates new debt on top of the loan.
• Underestimating cost of life changes — job changes, unexpected expenses, etc. If payments are too high relative to income, consolidating might cause hardship.
• Over-extending loan amount or term — borrowing more than you need, or stretching beyond what you can realistically repay, may prolong debt.
• Ignoring spending habits — consolidation doesn’t fix overspending, only debt structure. Without budgeting, debt can return.

If you think consolidation might lead to a “debt recycle” — consider professional guidance, budgeting tools, or pairing consolidation with a financial plan.

Beyond Debt Consolidation: Healthy Money Habits for 2025

Debt consolidation is a powerful step — but long-term financial health comes from consistent habits. Here are some tips for building a stronger financial foundation heading into the new year:

• Set up a realistic monthly budget — track income, expenses, and debt payments.
• Build an emergency fund — aim to save 3–6 months of living expenses before your next major spending surge.
• Use credit cards strategically — treat them like tools, not spending extensions; pay full balance each month if possible.
• Plan early for next holiday season — start a “gift savings” fund so next year you won’t need to rely on credit.
• Monitor your credit score and debt-to-income ratio — good habits now help long-term borrowing, home buying, or future goals.

FLFCU also offers resources — calculators, financial-education tutorials, and loan-officer support to help you succeed.

How to Get Started with FLFCU: Next Steps for Members

If you’re ready to tackle holiday debt and start fresh:

• Visit the Debt Consolidation Loan page on our website to learn more and start your application.
• Try the Loan Calculator to map out payment scenarios.
• Call or visit one of our branches. A FLFCU Loan Officer can walk you through your options, including balance transfers, HELOC, or personal loan consolidation.

Final Thoughts — Your Fresh Financial Start Starts Here

The holidays bring joy but the debt that follows shouldn’t linger all year. If credit-card balances, holiday spending, or high-interest debt are weighing on you, consolidation isn’t just a financial tool: it’s a reset button.

With the support of FLFCU flexible loan terms, fixed payment, and no prepayment penalty, you can turn last season’s holiday debt into next year’s financial freedom.

Let this be the year you take control. Consolidate your debt, stick with a plan, build better habits and get ready for a brighter, more financially secure future.

About the Author

Christina Sweet, AVP Senior Loan Officer

With 28 years of experience at Finger Lakes Federal Credit Union, Christina Sweet is an accomplished AVP Senior Loan Officer who helps members find smart lending solutions for home equity, mortgage, and personal financing. Her member-first approach, financial expertise, and local commitment make her a trusted resource for borrowers across the Finger Lakes region.