How to Recover From Holiday Overspending

Nothing says "post-holiday blues" like "massive credit card debt."

The holidays carry a hefty tag. All the gifts, travel, food, and entertainment can quickly drain your bank account. While a precious holiday memory is worth splurging on, now that the holidays are over, it's time to get your finances back on track. Here are some tips for recovering from holiday overspending.

Make a plan

As always, your first step is to face the person in the mirror. Get out your budget and take a hard look at where you stand financially. This can be the most sobering part, but you need to calculate how much you spent over the holidays so you know exactly how big of a hole you need to fill in. Pore over your credit card and bank statements to get a detailed breakdown. (Here’s my guide to conducting a spending audit on yourself.) Hey, maybe it's not as bad as you think! Or maybe it's worse. Either way, you need to know.

Starting using a budgeting app

Apps like YNAB and Goodbudget (RIP Mint!) can help you create a budget, track your spending, and set money saving goals. The visualization and notifications they provide can keep you focused and motivated. Check out the best budgeting apps based on what kind of saver or spender you are, and choose one that makes it simple for you to see exactly where your money is going, so you can identify areas where you can cut back.

Return gifts for cash

I know the etiquette can get dicey, but I'm a firm believer in returning gifts for cash if you simply can't use them. Personally, when I miss the mark and gift someone something they don't want, I prefer they at least get some cash out of it, rather than leaving it to fester on a high closet shelf, cuasing them to resent me and thus tarnishing our relationship forever. Pretty obvious.

So go ahead and take unwanted gifts back to the store to return them for a refund. Try to locate a gift receipt to make returns easier, but there are often a way to return things, even without a receipt. Just make sure you return unwanted holiday gifts sooner rather than later—and if the store won't take it back, consider selling the items on Craigslist, Facebook marketplace, or eBay. Every little bit you can recoup helps your financial recovery.

Return your own unwanted purchases (and don't get ripped off on defective ones)

If you have buyer's remorse over a gift you didn't give, or purchased a few gifts for yourself while holiday shopping and now regret it, remember that many retailers have generous post-holiday return policies. You may be able to return or exchange gifts that are unused and in original packaging. Again, you may not even need a receipt.

If you received a defective gift that needs to be returned, that's another story. The good news: You have more consumer rights than you might think. The bad: Some manufacturers will really make you fight for them. Hopefully the company honors their warranty, but if not, you may need to take on a dispute resolution or send a demand letter. And if you’re struggling to get a response, go public. Post on the company’s Facebook page or tweet your complaint at them. (Hey, it works for airlines.)

Trim your budget and stick to it

Now it’s time to look at your monthly budget and identify areas where you can cut back on spending until you can break even from your holiday expenses. For example, you can eat out less, limit your entertainment costs (who wants to go out in January anyway?), reduce miscellaneous expenses, and pause nonessential subscriptions. The goal is to trim discretionary spending, and even small reductions of $5-10 per category will make a difference, or at least give you a feeling of control in the wake of holiday recklessness.

Getting back on track financially after an indulgent holiday takes willpower, especially if you racked up a more debt than you planned to. But with some planning and restraint, you can bounce back after. And next year, try to make the holiday season about more than money-sucking excess. You can remain intentional with your spending while still embracing the spirit of the season.