Unwrap Better Habits Instead of Debt

‘Tis the season for gingerbread cookies, twinkling lights, and those big “next year will be different” promises we all make. Some of us swear we’re finally going to pay off the mortgage, others vow to trade grandma’s famous cookies for a gym membership (those cookies were delicious, but the scale isn’t feeling the holiday spirit). Whatever your resolution, don’t let your money habits get buried under the tinsel.

The New Year is the perfect time to do your own personal “Spotify Wrapped” but for your wallet! What were your top spending categories this year? How many “little” coffees, takeout lunches, and Target runs added up to a surprise chart-topper? If looking at the numbers makes your eyes bulge, you’re not alone… and you’re in exactly the right place to make a change.

The holidays are also the perfect moment to ask: How am I actually going to pay off debt in the coming year?

 Unwrapping better habits doesn’t mean you have to swear off everything that brings you joy. It just means getting intentional about how often we “treat ourselves” so those bonuses stop costing us interest charges. Debt hanging over your head is the ultimate joy-killer, it quietly eats your budget and your peace.

Here’s how to start unwrapping better habits and move toward a debt-free life (you can do this, even if you have a big pile starting at you).

1. Make a list (and check it twice)

Grab 2025’s bank and credit-card statements and start by highlighting every debt payment: mortgage, student loans, car loans, credit cards etc. Then list recurring bills such as subscriptions or utilities and average out grocery costs. Finally, add up the “extras” the pizza nights, Amazon impulse buys, the TJ Maxx clearance rack you swear was calling your name. Write down your total take-home pay and any side income. Seeing it all in one place is scary for about 5 minutes… then it becomes your power

2. Prioritize

Rank everything by “must keep the lights on” versus “nice but not necessary.” Bills, minimum debt payments, and housing go straight to the top (boring but non-negotiable). After those are covered, look at what’s left. That’s your attack-money, the money you can start throwing at debt instead of cashing out on little things.

3. Set Real Goals

Pick one or two smaller debts that are close to the finish line, maybe a car loan with two years left or a credit card you could wipe out in 2026. Calculate how much faster you’d be free if you added extra to it each month. Seeing a debt hit $0 is one of the best feelings this season (sorry Grandma’s cookies), and every paid-off account instantly boosts your monthly budget. Take a percentage of your current “fun” spending and redirect it, just temporarily! Promise yourself that once the debt is gone, that money will come back to help you in a different way.

4. Put Calendar Reminders on Your List

Motivation is sky-high in January, but the next few months have a way of derailing us. Set phone reminders for April, July, and October that say “Debt Check-In Day.” Pull up the numbers, see how far you’ve come, and celebrate (yes, this is us allowing you to go on an ice cream date). If you’re off track, no shame, just hit reset! The people who are successful are the ones who keep checking in instead of pretending the plan is working (when it’s not).

Paying off debt isn’t the flashiest way to spend your hard-earned cash, but it’s honestly the best gift you’ll ever give yourself. Every extra payment is giving you back years of interest you won’t have to pay. And once those payments disappear? That money becomes yours again to re-invest into your other life goals.

This season, unwrap freedom instead of more obligations. Your future self is already cheering you on, and trust us, they love not have that car payment anymore!