As the bills from the festive season arrive, many Canadians are facing the sobering reality of holiday debt. Financial expert and columnist Christopher Liew has published timely advice to help navigate this common post-holiday financial crunch. His guidance, published on January 15, 2026, offers a clear roadmap for prioritizing repayments and regaining control of personal finances.
Prioritizing Your Post-Holiday Payments
Liew emphasizes that not all debt is created equal. The cornerstone of his strategy is knowing what to pay off first. He advises consumers to immediately tackle high-interest debt, typically from credit cards, before it compounds and becomes unmanageable. Letting this type of debt linger can quickly derail any budget for the new year.
Following high-interest obligations, Liew suggests focusing on any outstanding balances that carry penalties or fees for late payment. Addressing these prevents additional financial drains. The approach is methodical: stop the bleeding from high costs first, then systematically address the remaining balances.
Creating a Sustainable Repayment Plan
Beyond identifying what to pay, Liew's commentary delves into how to pay it. He recommends creating a realistic and strict budget that allocates a specific portion of income to debt repayment. This often means cutting back on discretionary spending in the early months of the year to accelerate payoff timelines.
For those with multiple sources of debt, he discusses the merits of two popular methods: the avalanche method (paying off debts with the highest interest rates first) and the snowball method (paying off the smallest balances first for psychological wins). Choosing the right strategy depends on an individual's financial discipline and motivational needs.
Long-Term Habits to Avoid Future Debt Cycles
The final piece of Liew's advice looks beyond the immediate crisis toward prevention. He encourages Canadians to start a dedicated savings fund for next year's holiday season immediately after clearing this year's debt. Even small, regular contributions can prevent the need for credit reliance when the next festive period arrives.
He also stresses the importance of reviewing what led to the debt in the first place. Was it a lack of budgeting, impulsive spending, or unforeseen circumstances? Understanding the root cause is key to breaking the cycle and achieving long-term financial health, ensuring the start of 2027 is far less stressful.
