For many people, the first few months of a new year come with a mix of relief and reckoning. The holidays are over, the credit card statements arrive, and suddenly it’s clear that spending added up faster than expected. If you’re feeling a little financially stressed right now, you’re not alone—and you’re not behind.
The good news? A reset is possible. The beginning of the year is one of the best times to take stock of your finances, understand where you stand, and make thoughtful, realistic decisions about what comes next—without panic or perfection.
To help make sense of it all, I spoke with Rod Griffin, senior director of consumer education and advocacy at Experian, about how consumers can recover from a busy spending season, what to do if they overspent, how to think about credit and debt early in the year, and how to set financial goals for 2026 that actually stick.
And while this conversation is focused on consumers, it’s worth remembering that you small business owners are consumers, too—often juggling personal and business finances at the same time.
Resetting After Holiday Spending
Rieva Lesonsky: After the holidays, many people take a deep breath and realize they may have spent more than they planned. What’s the first thing consumers should do if they’re feeling financially stressed right now?
Rod Griffin: Holiday overspending happens, but it’s important not to panic. It can feel very overwhelming to realize your finances might have gotten away from you a bit, but it doesn’t have to be permanent, and you absolutely can bounce back. What matters most is how you reset and move forward this year. First, get a clear understanding of your finances. Review your credit report and credit score, know your balances, and how much money you owe versus how much you have coming in. Having that information in one place helps you see your financial picture clearly and makes it easier to plan your next steps.
Lesonsky: What other steps can consumers take?
Griffin: After reviewing your financial situation, build a plan to tackle your debt. Create a budget that helps you stay within your means and assign a “job” to your extra cash to help you pay down any debt you have.
Credit card debt is usually the place to start. Whether paying down the highest interest rate card first or the lowest balance, you’ll need to make more than the minimum payment for that card while continuing to make the minimum payment due on any others you have. Knock one out and start on the next.
At the same time, avoid overspending and impulse purchases. Put your spending into two categories, needs and wants, and make sure that the “wants” aren’t putting you over your budget.
Additionally, look for ways to reduce costs in the short term. Consider pausing or canceling non-essential spending, like unused subscriptions, or negotiating bills where possible. Experian offers a subscription cancellation and negotiation service that can handle the process of cancelling or negotiating the price of costly recurring bills. A paid Experian membership is required to take advantage of the service.
Getting Clear on Credit and Debt
Lesonsky: How important is it to assess your credit at the start of a new year, and what should consumers be looking for when they check their credit reports?
Griffin: While I encourage everyone to regularly check their credit report throughout the year, a new year is a great time to assess your finances as you plan your money for the year ahead. Reviewing your credit report helps you understand where you stand, stay proactive against potential fraud, and make informed decisions as you work toward your financial goals.
When you review your report, take stock of all the information it contains and make sure it matches your expectations. Review your open accounts, outstanding balances, and payment histories. Confirm that your personal information is accurate and look for any accounts or activity you don’t recognize, as these could be signs of fraud.
Lesonsky: How should consumers think about debt at the beginning of the year—especially credit card balances from holiday spending? What should be the priority?
Griffin: Every person’s financial situation is different, and their debt payoff strategy will be personal to them. You might prefer to tackle your smallest debt first so you can have a quick win that motivates you to keep going. Or you may want to start paying down the debt that has the highest interest rate.
What will work best for you is the plan you can stick with. I often say that math never lies, but it doesn’t always tell the whole truth, either. Math doesn’t account for human emotion, and there is a lot of emotion tied to money. You have to do what works for you. There is no one perfect plan that everyone should use.
Lesonsky: What role does budgeting realistically play in financial recovery? For people who hate traditional budgets, are there simpler approaches that still work?
Griffin: Creating and tracking your budget may not be the most exciting way to spend your time, but it is one of the most important things you can do for your finances. For many people, the word “budget” might feel restrictive, so it can help to think of it simply as a plan or a roadmap that guides your spending and helps you stay within your means.
A budget doesn’t have to be complicated. The important thing is that it gives you a clear picture of where your money is coming from and where it is going to. Understanding that empowers you to take control of your money rather than feel like it controls you.
At the end of the day, remember that following a budget isn’t meant to be about perfection. One slip-up doesn’t mean you’ve failed or have to start over. Things change over time, and your budget should, too. Building new financial habits takes time, especially if budgeting is new to you. Give yourself some grace and focus on progress, not perfection. Every small step you take to stay aligned with your goals puts you on the right path.
Building Habits That Stick
Lesonsky: Are there common financial mistakes people make early in the year that can hurt them later—and how can they avoid them?
Griffin: A common mistake that can hurt you year-round is avoiding the problem. If you overspent during the holidays and are carrying debt, ignoring it won’t make it go away. In fact, letting debts sit without a plan only makes tackling them more overwhelming as interest continues to grow.
Another issue you might run into is losing momentum on your New Year’s goals. It’s easy to start off motivated, but once everyday responsibilities pick up, budgets get forgotten, and old spending habits return. That can quickly snowball into a bigger debt problem that becomes even harder to face.
The best way to avoid these pitfalls is to stay engaged and intentional with your finances, even in small ways. Check in on your budget regularly, track your balances, and adjust your plan as needed.
Celebrate your achievements. Set short-term, mid-term, and long-term goals. Give yourself a reward when you reach them. Maybe dinner out, a spa day, a round of golf, or an ice cream. Pick something that you’ve planned for in your budget, so it doesn’t set you back, but that you enjoy. Rewarding yourself can help keep you motivated, which is key to reaching your financial goals.
Setting Realistic Financial Goals for 2026
Lesonsky: What are a few realistic financial goals people should consider setting for 2026 that can actually make a difference over time?
Griffin: One important goal you should have is to make sure that you pay your bills on time and in full. Payment history is the most important factor that impacts your credit score. Just one missed payment can have a quick and significant impact on your credit score and can begin a cycle of debt if you let that missed payment turn into one or two more.
Additionally, think about the year ahead and be clear about your personal and financial goals. Specific goals make it much easier to outline the steps you need to take to reach them. Maybe you want to buy a new car, save for a house down payment, plan for a trip, or put more money towards retirement. Each of those goals requires a slightly different plan, and the more detailed you are, the more realistic your path becomes.
Don’t make money a goal in and of itself. Have personal goals and dreams, and think of money as one of the tools you need to achieve those goals. It’s usually much easier when you have a reason to reduce debt, say no to a purchase, or put money in a savings account when you know exactly why you are doing it.
Finally, don’t overlook the resources available now that can help make your money work best for you.
Lesonsky: If you could give consumers one piece of advice to feel more confident and in control of their finances, what would it be?
Griffin: If I could offer just one piece of advice, it would be to take an honest look at where you are financially and make one small, intentional step forward today. You don’t have to fix everything at once. What matters is creating a clear picture of your situation and choosing a manageable action, whether that’s reviewing your credit report, setting up a simple budget, or making an extra payment on a balance.
Small steps build momentum. When you understand your finances and take even a small action toward improving them, you put yourself back in control. That feeling of progress is what leads to greater confidence and healthier financial habits over time.
Rieva Lesonsky is the founder of Small Business Currents, a content company focusing on small businesses and entrepreneurship. You can find her on Twitter @Rieva, Bluesky @Rieva.bsky.social, and LinkedIn. Or email her at Rieva@SmallBusinessCurrents.com.
Photo courtesy Getty Images for Unsplash+
