If you spent more money than anticipated in the course of the 2023 holiday season, you’re not alone. Gallup data from December found that Americans intended to spend $975 on holiday gifts on average, up $100 from a year prior.
No matter what your spending total amounted to, you may have decided to put your holiday charges on a credit card in the absence of having the money in your savings account. And if you were able to charge your expenses on a 0% interest credit card, your thought process may have gone something along the lines of “Oh, hey, this is no big deal.”
After all, with a 0% interest credit card, you’re not racking up interest charges from the start. Rather, you get a grace period that could last as long as 18 months or more, depending on your card. That’s plenty of time to pay off that debt, right?
Well, maybe not. At this point, it’s about a month since the holiday season wrapped up. And if you haven’t yet saved any money in 2024 to put toward your credit card balance, then chances are, you’re going to run into similar hiccups next month, and the month after that, in the absence of having a plan.
And you should have a plan, because here’s a little secret about 0% interest credit cards: If you don’t pay your entire balance off by the time your introductory period is over, the interest rate on your debt could suddenly skyrocket, leaving you in a really bad financial spot. So if the clock is ticking down on your 0% interest credit card balance, here’s what to do.
1. Examine your spending
The more spending you can cut in the coming months, the more money you’ll free up to pay off your credit card balance before your 0% introductory period comes to an end. Take a close look at recent bank and credit card statements to see where every dollar of yours has gone.
From there, identify some expenses you can cut in the coming months, whether it’s streaming services, other subscriptions, or weekly takeout.
2. See if you’ll be getting any windfalls
If you have a February birthday, it may be that you can expect a nice check from your parents. Or maybe your job pays quarterly commissions, and based on your January sales so far, you know you have at least a few hundred dollars coming your way at the beginning of April.
Either way, take a look at the timing of your anticipated windfalls and see if that money will arrive before your introductory period comes to an end. If so, that’s at least some cash you can potentially plan for.
3. Join the gig economy
When you’re racing against the clock, an income boost from a second job could be the thing that spares you from having to pay interest on a credit card balance. Explore your options for bringing in extra money, whether it’s by driving for a ride-hailing company, waiting tables on weekends, or pet- or house-sitting in your spare time.
When your credit card tells you it won’t charge you interest on your purchases, it’s important to recognize that that’s a limited-time offer. If you took advantage of a 0% interest credit card to cover your holiday buys, it may not be too late to pay off your balance before interest starts to accrue. But start working toward that goal now, before you run out of time.
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