Holiday Debt Hangover? 3 Steps to Reclaim Financial Control Post-Divorce

Holiday Debt Hangover? 3 Steps to Reclaim Financial Control Post-Divorce

By Nancy A. Hetrick, CDFA, AWMA On 02/05/2025

The holiday season can be a whirlwind, but once the decorations are down, the bills have a way of piling up and becoming overwhelming. For those freshly navigating life after divorce, this financial hangover can feel especially daunting. But don’t let that stack of bills become a mountain! With a little planning and proactive steps, you can regain control and start the new year on a stronger financial footing.

1. Take a Financial Inventory
The first step to tackling post-holiday debt is understanding exactly where you stand. Gather all your bills, credit card statements, and any other debts you owe. Create a simple list of your debts, interest rates, and minimum payments. Knowing the full picture can be empowering and is crucial for creating an effective plan.

2. Prioritize and Strategize Your Payments
Two popular debt-repayment strategies can help you decide where to start: the snowball method and the avalanche method. The snowball method focuses on paying off the smallest debts first, giving you quick wins and momentum. If you feel a lot of anxiety about the number of debts, this is the one for you. The avalanche method targets debts with the highest interest rates first, saving you money in the long run. Choose the strategy that feels right for you and stay consistent. Consider setting up automatic payments to ensure you never miss a due date.

3. Trim Expenses and Boost Income
Post-divorce budgets can be tight, but trimming even small expenses can free up extra cash for debt repayment. Evaluate subscription services, dining-out habits, and other non-essentials. On the flip side, think about ways to boost your income, whether through freelance work, selling unused items, or leveraging any newfound time for side gigs. In the age of Facebook Marketplace, Poshmark, and Craigslist, you could be surprised how much quick cash you could bring in.

Debt doesn’t have to dictate your fresh start. By taking proactive steps and focusing on small, consistent actions, you can regain control of your finances—and your future. If it still feels overwhelming, consider working with an advisor trained in financial transitions. Here's to making this year one of empowerment and financial freedom!

 

Nancy Hetrick is a financial advisor trained in financial transitions and has specialized in working with women after divorce for over 12 years. She can be contacted at nancy@investsps.com

Tagged with: cdfa, divorce, financial planning, debt

Blog Disclaimer: The opinions expressed within these blog posts are solely the author’s and do not reflect the opinions and beliefs of the Certitrek, IDFA or its affiliates.