How You Can Avoid Holiday Late Payments And Stay On Track

Holiday late payments are common due to overspending, travel expenses, and seasonal job changes. Missing just one payment can have a major financial impact, as your credit score can go down by up to 50 points.

In this guide from Southwest Title Loans, we will explain five ways to avoid missed holiday bills. We will also review how title loans and other emergency loans can help when you’re faced with an important bill you cannot afford.

Why Do Holiday Late Payments Happen?

According to Lending Tree, 36% of Americans took on holiday debt in 2024. A survey from Beyond Finance also found that 35% of Americans have had holiday debt in the past and 31% expect to take on debt this holiday season.

The reasons for taking on this debt are plentiful, but all come back to the massive spending necessary this time of the year. If you have to buy gifts for Christmas, Hanukkah, or birthdays, you will have to spend significantly more than you would during a normal month. Making sure all of your friends and loved ones get good gifts for the holidays can lead to overspending.

On top of spending massively on gifts, you may also have to pay for travel if you don’t live in the same state as your family members. Plane tickets, rental cars, and room and board can cost hundreds (possibly over $1,000), which can be hard to put into your budget if money is tight. Seasonal work changes can also affect the amount of money that you bring in, making this time period even harder financially.

5 Tips To Avoid Missed Holiday Bills

Don’t settle for late credit card payments and other overdue bills during the holiday season just because you have to spend money on gifts and travel. There are ways to mitigate your costs and make this time of year more affordable.

Below, we will give you five easy tips you can follow to avoid overdue holiday expenses:

1. Create A Budget

The easiest way to avoid missing a payment due to overspending during the holidays is to create a budget that accounts for increased spending. Write down all of your expenses, including food, gas, rent/mortgage, and other essential costs. Account for how much you need to spend on daily, weekly, and monthly expenses you always run into.

After subtracting these costs from your monthly income, you can get a handle on how much you have to spend on gifts and travel. Don’t spend more than you can afford. If you need more money for holiday spending, you will have to cut expenses to increase your spending budget.

Here are some expenses you can cut to reduce spending:

• Unnecessary subscriptions
• Luxury items (makeup, new clothes, etc.)
• Eating out at restaurants
• Ordering takeout
• Expensive night outs (bars, clubs, concerts, etc.)
• Name-brand groceries
• Buying coffee at cafes

2. Enroll In Automatic Payments

The best way to avoid holiday late payments is by enrolling in automatic payments. Automatic payments will take the money out of your approved account before the payment is due. That way, you don’t have to remember to pay your bill; the money is withdrawn automatically.

Now, you do have to make sure you can afford these payments. Write down when you will have money withdrawn and how much. Program your budget to ensure you have the money for these essential bills, as missing these payments can reduce your credit score and affect your ability to get loans and qualify for credit cards.

3. Prioritize Bills Over Gifts

While it may be hard, you need to remember that your bills are much more important than gifts. While that may lead to some disappointment, minimizing your gift spending to afford your bills is the most sensible strategy.

The last thing you want to do is put yourself in debt just to afford gifts. Missing bill payments can lead to late fees and reduced credit, which can have long-term adverse effects on your finances. Pay your bills first and spend whatever money is left over on gifts for friends and family.

4. Use Financial Apps To Track Expenses

While you can write down all of your expenses, there are also apps you can use to track your expenses. Your banking app may have a feature that tells you when money is extracted from your account if you set up automatic payments.

You can also use apps like Rocket Money, YNAB, and PocketGuard to track your expenses. They can also provide expert insight into ways to reduce your spending and make your budget work better.

5. Create An Emergency Fund

During this time of increased spending, a financial emergency can ruin your finances. You will likely not have the money to cover emergency expenses like medical bills, home repairs, or unexpected travel costs. However, you can afford these costs if you have an emergency fund.

Throughout the year, you can put money aside to afford unexpected emergencies. We suggest you save 3-6 months' worth of expenses in your emergency fund. You can do this by setting aside some money from your paycheck; even just $50 every paycheck can help.

If you create this rainy day fund, it can help during the holiday season to help you afford costs you didn’t anticipate. If you couldn’t create an emergency fund, you can also get financial help for emergencies by borrowing emergency cash loans like title loans.

How Can A Title Loan Help With Missed Holiday Bills

Before you miss an important bill, you can borrow money through a title loan at Southwest Title Loans. This secured loan lets you use your vehicle title as collateral to borrow up to $15,000 based on your car, truck, or van’s value. You can only get approved for this type of loan if you own your vehicle outright and have fully paid it off.

To get approved for a title loan in Arizona, you will need just three required items: a driver’s license, a lien-free vehicle title in your name, and your vehicle for an inspection. As long as you have these items, you can begin the process online and complete it at one of our Arizona stores in just 30 minutes.

The following is the step-by-step process for getting title loan approval:

• Fill out our online inquiry form with your basic details
• Speak to us over the phone about title loan terms
• Bring your required items to the nearest Arizona branch for verification
• Have your vehicle’s value determined during an inspection
• Sign the loan agreement to complete the process
• Receive your title loan cash later that day or by the next business day

Just remember, title loans should be considered a last resort. Do not get title loans to afford holiday gifts, as these are luxuries. You should only borrow title loans for emergency costs you cannot afford.

FAQs About Missed Holiday Payments

Will one late holiday payment hurt my credit score?

Missed payments will hurt your credit score if you fail to pay them 30 days after the due date. At that point, the creditor will report the missed payment to the major credit bureaus. Depending on the cost and how long the payment was unpaid, you may lose up to 50 points.

How long do late payments stay on a credit report?

Late payments can stay on your credit report for up to seven years after the date of the missed payment. However, it will only have a major effect in the short term. As long as you continue to make payments, that missed bill will have less effect as you add more positive recent credit history.

What if I can’t make my holiday bill payments?

You can ask your friends and family for a loan to afford the bills without needing to take out a real loan. If you cannot get the money you need, a title loan is available, as mentioned above. You can also seek title loan alternatives like personal loans and registration loans.

Get A Title Loan For Holiday Late Payments – Borrow up to $15,000 Today!

Did you miss a payment for the holidays? If you missed a substantial payment, get the financial help you need from Southwest Title Loans. Our title loans can provide fast emergency cash the same day you apply – all credit types accepted. You can even keep your car during repayment. Fill out our online title loan form and visit us in person to get approved in under half an hour.

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.