A financial expert shares year-end money moves to deal with and avoid credit card hangovers during the holidays

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While these credit card actions may seem small, they can create a big problem, especially for the nearly one-third of Americans who are still struggling to pay off last year’s debt. Vacation credits.

NerdWallet Holiday Spending Report from September indicated that 28% of the 1,700 shoppers surveyed had not yet gotten over their debt from the 2023 holiday season. Add to that this year’s seasonal costs, and the “stress” that more than half of survey respondents reported when thinking about taking the holidays is on the rise.

Dan Roccato, a finance professor at the University of San Diego’s Knaus School of Business, blames inflation on lingering debt.

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“The prices of toys and other Christmas gifts are simply more expensive than they were three and a half years ago, so this is the No. 1 issue that Americans are grappling with,” he told Fox News on Monday.

Financial expert Dave Ramsey shared the same advice with “Fox and friends“Last Wednesday, I advised viewers to make a list of people they intend to shop for, and set a specific amount to spend on each.

“If you do that, put a name next to it, and then add up those dollar amounts, you’ll have what’s called a Christmas budget. And if you stick to that, you won’t overspend.” He said.

Rocato suggested there are ways to spend money more wisely and head into 2025 with a more financially secure outlook. He believes it boils down to a handful of smart financial moves at the end of the year.

Buy now, pay later, and discounts increase your holiday spending

“The key thing is that you want, if you haven’t done so yet, to set a budget. Stick to that budget if you can, and ring in the new year, not with a credit card hangover, but with a lot of optimism. And a plan for what we can do better in Next year.”

“There’s still time, so you can contribute to that IRA if you haven’t done so yet this year. Use your flexible spending account at work if you have one. Now is a good time to make that dentist appointment you’ve scheduled,” he continued. You’ve been putting it off if you can get it before the end of the year, use that money for those last-minute medical appointments.

“Maybe you’re a contractor, or you’re getting a bonus or something. If you can push that income into next year, keep doing it. Throw it in next year’s tax pot instead of this year.”

For 2025, Rocato advises increasing your 401(k) contribution, enrolling in a health savings account, reviewing insurance policies, paying off credit card debt and investing in yourself.

“People ask me all the time: What’s the best investment out there?” “Forget Bitcoin, it’s yourself, add some skills, and boost your resume for next year.”

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FOX Business’ Agustin Hayes contributed to this report.