How Long Do I Need to Wait to Try to Settle Debt from the Holidays?
Georgia residents and consumers throughout the country took on a significant amount of debt during the 2025 holiday season. According to LendingTree data, Americans incurred an average of $1,223 during the holidays for gifts, travel, and other expenses. That number represents an increase from previous years. And many spent much more than that, even if they were already in debt. LendingTree’s information shows that parents with children under the age of 18 took on more debt with an average of over $1,300. Of the people who took on holiday debt this year, more than 40 percent were still struggling to pay off holiday debt from the 2024 season. About 47 percent of debtors have said they regret their holiday 2025 spending, and that figure increases to about 52 percent for parents with minor kids who took on debt.
In total, about 37 percent of Americans took on debt during the 2025 holiday season that they will not be able to repay in full by the end of January 2026. Should debtors with holiday debt attempt to settle with a creditor as soon as possible in the new year, or does it make sense to wait?
Creditors Are Often More Willing to Settle When Debt is Past-Due or Delinquent
Do you need to wait to try to settle your debt in the New Year? Not necessarily. However, creditors are often more willing to settle debt when it is past-due or delinquent. Once debt becomes past-due and delinquent, creditors figure that there is less chance they will be repaid in full. As such, they may be willing to accept a debt settlement offer before they sell the debt to a debt collector.
If your debt is past-due and especially if it is delinquent, you may also be able to negotiate a settlement agreement that is better for you. In short, the creditor may be willing to accept a lower amount from you to settle the debt and forgive the remaining amount you owe.
Weighing Credit Score Considerations with Settlement Possibilities
You should discuss the timing of your debt settlement plans with a lawyer who has experience negotiating debt settlement agreements.
Ultimately, you will want to consider how past-due debt and delinquency may impact your credit score, as well as the likelihood of negotiating a beneficial settlement amount.
Contact a Georgia Debt Settlement Attorney in Lilburn for Assistance with Your Debt Settlement Negotiations
If you know that you have incurred a significant amount of debt during the holidays on top of debt you already owe, it may be possible to negotiate a settlement for the full amount of debt with a credit card company or another creditor. However, as we explain above, creditors are often more eager to settle debt once it has become past-due or delinquent. At that point you may also get the creditor to agree to a settlement amount that is more beneficial to you. At the same time, if you allow your debt to become delinquent, you will see more negative effects on your credit. The best way to determine when to negotiate a debt settlement agreement with your creditor is to seek advice from an experienced Georgia debt settlement lawyer at Konn Law Firm LLC. Contact our firm to learn more about debt settlement considerations and to discuss your options.
Source:
lendingtree.com/credit-cards/study/holiday-debt-tariffs/
