Festive season spending: how to enjoy it without new debt
The big spending season has started. Diwali is on 8 November this year. Then come Black Friday, Christmas and New Year. Lights, gifts, food, travel. It is a happy time. But for many families, the bill arrives in January.
This post is not here to tell you to stop celebrating. Celebrating is part of a good life. The goal is simple: enjoy the season and start the new year with no new debt.
What this season's numbers say
Several big surveys came out in the last few weeks. Most of them are from the United States, but the pattern is the same in many countries. People want to celebrate, prices feel high, and borrowing fills the gap.
| Finding | Source |
|---|---|
| 49% of people expect to borrow for holiday purchases they can't pay off right away. | ICSC survey, 1,003 adults, 21–23 Sep 2026 |
| 47% expect holiday costs to delay or cut their debt payments, savings or retirement money. | ICSC, same survey |
| 23% expect to still be paying for this season's purchases next year. | ICSC, same survey |
| Expected average spend: $779 (last year $796). 74% plan money-saving habits like deals or store brands. | Circana, 3,534 consumers, published 8 Oct 2026 |
| "Buy now, pay later" spending online is forecast at $21.3 billion for Nov–Dec, up 6.6%. | Adobe forecast, reported 1 Oct 2026 |
| Last season, 37% took on holiday debt. The average was $1,223. | LendingTree survey, reported Jan 2026 |
Read that last line again. The average holiday debt was more than the average planned spend. That happens when small payments, sales and "one more gift" add up without a plan.
Why festival debt sneaks up on us
Festival spending is not a surprise. It comes every year, in the same month. But we treat it like a surprise. We don't save for it, so we borrow for it.
Three things make it worse:
- Many small payments. A gift here, sweets there, a new outfit. No single item feels big.
- Sales with a clock. "Only today" turns a "maybe" into a "yes".
- Instalments that hide the total. Four small payments look easy. Five plans at the same time do not.
A 5-step festive money plan
1. Pick one number
Look at the money you already have, or will surely have before the festival. Pick one total for the whole season. Not per shop. Not per day. One number. If the honest number is small, that is fine. A small number you can pay is better than a big number you will pay for in March.
2. Split it into five lines
Write five lines: gifts, food and hosting, travel, clothes and decorations, and "extra". Give each line a part of your number. The "extra" line is important. Something always comes up.
3. Put the money in its own pot
Move the festival money into a separate account, envelope or savings pot. When the pot is empty, the season's shopping is done. This one step does more than any willpower. Our budget calculator can help you see what your normal month can spare.
4. Use a 24-hour rule for sales
If it is not on your list, wait one day. Most "must buy" feelings are gone by the next morning. We wrote more about this in the 10 pm shopping cart.
5. Treat "buy now, pay later" as a loan
Only use it if the full amount is already in your festival pot. Write every plan on one list with its dates. If a missed payment brings a fee or interest, you are paying extra for the same gift.
A festival is a few days. A loan for it can last months.
Gifts that cost less but mean more
Most people don't remember the price of a gift. They remember the feeling. Some ideas: a handwritten note with a small gift, food you cooked yourself, your time (help with a task, a day out), or one shared family gift instead of many small ones. Agree on a gift limit with family early. Often others are relieved, because they feel the same pressure.
Still paying for last year?
If you still have debt from last season, pay that first. Then celebrate with what is left. Adding new debt on top of old debt is how a short-term problem becomes a long one. Our guide on how to get out of debt and the debt payoff calculator show a clear way out.
The January check (10 minutes)
After the season, sit down once. What did you plan? What did you spend? Which line went over? Write one lesson for next year. Then start a small monthly amount now, so next year's festival is already paid before it begins. Even a little each month adds up — and it also builds your emergency fund habit.
Questions people ask
How much should I spend on festivals and holidays?
There is no single right amount. A good rule is to spend only money you already have or will surely have before the festival, and to set one total for the whole season before you start shopping.
Is buy now, pay later a good idea for holiday gifts?
It is a loan, even if there is no interest at first. It only makes sense if the full amount is already saved. Several plans at once make it hard to see the real total, and missed payments can bring fees.
How do I avoid holiday debt?
Pick one number, split it into a few lines, keep the money in a separate pot, wait 24 hours before buying anything not on your list, and agree on gift limits with family early.
What if I already have debt from last year?
Pay down the old debt first and celebrate with what remains. Adding new debt on top of old debt makes it last much longer.
How can I save for next year's festival?
Divide next season's planned amount by the months left and move that small amount every month into a separate pot. Then the festival is paid before it starts.
Sources checked for this page
- ICSC — 2026 Holiday Intentions Survey (6 Oct 2026)
- Circana — 2026 Holiday Study (8 Oct 2026)
- Talk Business & Politics — Adobe 2026 holiday forecast (1 Oct 2026)
- Wharton Baker Retail Center — LendingTree holiday debt survey (Jan 2026)
- SmartPuja — Diwali 2026 date
Ye general jaankari hai, financial advice nahi. This page is general information, not financial, legal or tax advice. Rules and numbers differ by country and change over time — check your own situation before you act.