How to Get Your Finances Back on Track After the Holidays

The New Year isn’t just about resolutions—it’s also when many Kiwis face the reality of their Christmas spending. Overspending on gifts, travel, and entertainment can leave a hole in your budget and start the year with debt. If you’ve overindulged this festive season, don’t worry. Here are three practical steps to help you get back on track.

Step 1: Review Your Holiday Spending

Let’s face it, the silly season makes it easy to lose track of spending. Before you move forward, take some time to figure out how much you actually spent. Dig into your receipts, bank statements, and credit card bills, and tally up any extras beyond your usual budget. Don’t forget to check any Buy Now Pay Later (BNPL) purchases too—missing these repayments can lead to high penalties or interest charges. Knowing where you stand is the first step to sorting it out.

Step 2: Make a Debt Repayment Plan

Once you’ve got a clear picture of your debt, it’s time to figure out how to pay it off. There are a few proven strategies that can help:

• The Snowball Method: Start with your smallest debt. Pay it off as quickly as you can, while making minimum payments on everything else. Once the smallest debt is gone, move to the next one. The quick wins can keep you motivated.
• The Debt Avalanche Method: Focus on the debt with the highest interest rate first. Once that’s gone, move to the next highest. This saves you money on interest in the long run.
• Debt Consolidation: If juggling multiple debts is overwhelming, consider combining them into one loan or credit card with a lower interest rate. Having one repayment can simplify things and help you pay it off faster.

Whatever approach you choose, commit to cutting back on credit card spending and avoid adding new BNPL purchases to stay on track.

Step 3: Plan Ahead for Next Year

To avoid the same stress next Christmas, start planning now. Use your holiday overspending as a guide and set up a holiday savings fund. Treat it like a bill—something you pay regularly.

• Automate your savings by setting up a direct debit into a separate account.
• Start small—even $10 a week adds up to $520 by the end of the year.
• Team up with a friend or family member to keep each other motivated.

Saving a little each month means you can enjoy next Christmas without worrying about blowing the budget.

Get Personalized Financial Advice

If you’re feeling stuck or want help managing your finances, a Mortgage Express adviser can tailor a plan to your situation. Whether it’s debt repayment or setting up long-term savings goals, they’ll help you move forward with confidence.

For more tips, visit Harcourts' guide to getting your finances back on track.