As we head into the year's final months, many people find themselves bracing for the financial demands of the holiday season. Between travel expenses, gifts, and higher utility bills, it’s easy for finances to spiral quickly—especially if you're already struggling with debt.
This might be the perfect time to ask: Should I settle my debt before the holidays? The answer depends on your financial situation, creditors, and long-term goals.
Let’s explore what you need to consider before making a move.
The Financial Reality of the Holidays
The holidays tend to magnify financial pressure. If you’re already behind on payments or dodging calls from debt collectors, the added stress of holiday spending can feel overwhelming.
The truth is—waiting until after the holidays could mean even more debt and fewer options. It’s not uncommon for people to charge holiday purchases on credit cards or take out loans just to keep up appearances. But doing so can worsen your financial standing and make it harder to negotiate or settle your existing debts down the line.
Why Now Might Be a Strategic Time to Settle
Here’s why many consumers choose to settle debt before the holidays:
- Creditors may be more flexible. As the year ends, some creditors are eager to wrap up accounts or close the books. They may be willing to negotiate lower settlements than usual.
- You can start the new year with a clean slate. There’s something psychologically freeing about heading into January with fewer debts and less financial stress.
- Avoid adding more debt. If you settle now, you can refocus on holiday budgeting without stacking on new balances.
Remember: settling debt doesn't necessarily mean paying the full amount. With the right legal help, you may be able to negotiate a significantly reduced amount—and stop collection activity in the process.
When Settling Might Not Be the Best Move—Yet
While settling can be smart for many, it’s not always the right call right away.
- You may not have the funds. Many settlements require a lump sum or payment plan. If you don’t have enough set aside, exploring other strategies like debt defense or bankruptcy options may be better.
- The debt may not be valid. Don't rush into a settlement if you’re being sued for a debt or unsure whether the collector even owns it. You may have stronger defenses available.
- You're being sued. If you’ve already been served with a lawsuit, you need legal advice right away. Settling might still be an option, but you’ll want to protect your rights before signing anything.
Santa Ana Debt Settlement Attorneys
Every debt situation is different—and making the wrong move now can affect your finances well into the future. Before the holidays swing, now is a smart time to clarify where you stand and your options.
At Fitzgerald & Campbell, we help Californians overwhelmed by debt fight back, reduce what they owe, and protect what they have. Whether considering a settlement or facing a lawsuit, our team can guide you with a personalized plan that puts you—not the creditor—in control.
Contact us today at (844) 431-3851 for a free consultation. Let’s improve your finances before the holidays begin.