Suze Orman Shares Empowering Ways to Stick to Your Holiday Budget—and Avoid Credit Card Debt!
Plus, the money maven reveals the most meaningful present she ever gave
From picking the perfect present (within our budget!) to managing credit card debt this holiday season, it’s safe to say the most wonderful season of all, is also the most financially stressful! To help us regain control—and empower us with simple strategies—we asked money maven Suze Orman to share her advice. Here, the host of the Women & Money podcast and author of The Ultimate Retirement Guide for 50+ addresses two of your top holiday-related money concerns, starting with a challenge that affects so many of us: how to stick to a gift budget.
Q: My kids are asking for holiday gifts that I simply can’t afford. What do I say without disappointing them?
Suze: I have a question for you: Can you remember what you got last year for the holidays? Years ago, when I was on The Today Show, I decided to test this out. I took the cameras with me, and we walked down Fifth Avenue in New York City, asking people, “You have 10 seconds to answer: What did you get last year for the holidays?” Adults, kids, grandparents—we stopped them all.
Almost everyone struggled. If they did try to answer, it was with hesitation. They would say, “I think it was…” or “Maybe it was…,” but no one was sure. Out of about 50 people, only one woman responded with confidence. She smiled and said, “Yes, my husband gave me a foot rub.” Think about that. The one memory that stood out wasn’t a gadget, jewelry or a toy—it was a gift that cost nothing but came straight from the heart.
That’s why I want you to hear me: If you can’t afford the big-ticket item, don’t apologize. Instead, make this the year you flip the script from getting to giving.
For more than 25 years, back when my nieces and nephews were little, we had one holiday rule in my family: You can only give a gift that is handmade. Our nieces and nephews grew up excited about the things we could all make, not the things money could buy.
That tradition taught them early that love isn’t measured by money; it’s measured by thought, creativity and effort. Today, their holidays are still about giving, as they now volunteer at Ronald McDonald House, bringing comfort to families with sick children.
Here’s an idea you can try with your own kids. Have them each gather 10 items they no longer use, like old toys, clothes and books. Put them in the middle of the living room. Ask them to guess what each item cost and write it down. Total it up, then ask: “Would you rather have this pile of things or that same amount in cash?” Of course, they’ll say, “The cash.”
Q: I feel guilty over racking up credit card debt this holiday season. What’s the best way to start paying it off?
Suze: First things first: Stop feeling guilty. You can’t undo December, but you can take charge of January. The smartest move isn’t to panic or throw random payments at your balances. It’s to get strategic and make sure every dollar works as hard for you as possible. Here’s how!
Get the lowest interest rate
Before you send a payment, ask your credit card companies if they’ll lower your interest rates. Many of them will say yes—especially if you’ve been a longtime customer who pays on time. Even a small decrease will save you real money. Next, see if you can transfer your balance to a lower-rate card. Some banks offer 0 percent balance-transfer promotions for up to 21 months. That’s like getting a year and a half of breathing room.
Stop using your cards
Take every card out of your wallet. Put them away, wrap them in rubber bands or freeze them in a block of ice! You can’t fix a problem while you’re still feeding it. From this day on, all spending comes from your checking account. When you pay with cash or debit, you feel every purchase—and that awareness is power.
Create your payoff plan
Grab a notebook and list every card, store account and loan you owe, from highest interest rate to lowest. Next to each, write the minimum payment and the date you’re making this list. From now on, you’ll pay at least that same minimum every month. Now, add up all your minimums.
Let’s say the total is $600. From here, add 10% more ($60 in this case). That extra $60 goes straight toward your highest-interest payment, along with its regular minimum. Continue paying the minimum on the rest of your cards. When that top card is paid off, take everything you were paying on it—the minimum and that extra $60—and roll it onto the next card. Keep going until every balance is gone. It’s simple math plus discipline, and it works!
Stay focused
If a store flashes another “buy now, pay later” offer, say no. Every time you resist new debt, you’re saying yes to your future. In this new year, don’t just pay—plan. Negotiate your rates, stop charging and pay off your cards one by one. Before you send a payment, ask your credit card companies if they’ll lower your interest rates. Many of them will say yes—especially if you’ve been a longtime customer who pays on time. Even a small decrease will save you real money. Next, see if you can transfer your balance to a lower-rate card. Some banks offer 0 percent balance-transfer promotions for up to 21 months. That’s like getting a year and a half of breathing room.
Got a question for Suze? Email us at AskSuze@WomansWorld.com.
Portions of this story first appeared in the December 15, 2025, and January 1, 2026, issues of Woman’s World magazine
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