Financial expert shares year-end money moves to tackle, avoid holiday credit card hangover

Swipe, tap or insert chip.

While these actions taken with a credit card might seem small, they can create a big problem, especially for nearly one-third of Americans still struggling to pay off last year's holiday balances. 

NerdWallet's holiday spending report from September indicated 28% of 1,700 surveyed shoppers have yet to move past their debt from the 2023 holiday season. Add this year's seasonal costs to the mix and the "stress" more than half of survey participants reported when thinking about holiday spending only escalates.

Dan Roccato, a finance professor at the University of San Diego's Knauss School of Business, blames inflation for the lingering debt.

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"The price of toys and other Christmas gifts are just simply more expensive than they were three and a half years ago, so that's the first issue that Americans are grappling with," he told Fox News on Monday.

Financial guru Dave Ramsey shared the same advice with "Fox & Friends" last Wednesday, advising viewers to make a list of the people they intend to shop for, and establish a specific amount to spend on each.

"If you do that, and you put a name beside it, and then you total up those dollar amounts, you have what's called a Christmas budget. If you stick to that, you won't overspend," he said.

Roccato suggested there are ways to spend money more wisely and head into 2025 with a more financially secure outlook. He believes it boils down to a handful of smart year-end money moves.

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"The key thing is that you want to, if you haven't by now, make a budget. Stick to that budget if you can, and roll into the new year, not with the credit card hangover, but with a lot of optimism and a plan of what we can do better next year."

He continued, "There's still time, so you can contribute to that IRA if you haven't done so yet this year. Use your flexible spending account at work if you have one. Now's the time to do that dentist appointment that you've been putting off. If you can get it in before the year's end, use those funds up [for] those last-minute medical appointments."

"Maybe you're a contractor, or you get a bonus or something like that. If you can push that income to next year, go ahead and do it. Throw into the next year's tax bin instead of this year."

For 2025, Roccato advises bumping up your 401(k) contribution, enrolling in a health savings account, reviewing insurance policies, paying off credit card debts and investing in yourself.

"People ask me all the time, 'What's the best investment out there?' Forget Bitcoin, it's yourself. Add some skills, boost your resumé next year."

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FOX Business' Agustin Hays contributed to this report.