UMB Bank has outlined how households can organize credit card balances after holiday spending, starting with a record of what is owed and when payments fall due. Its January 6, 2026 article connects the repayment plan with a budget for recurring expenses and future gift purchases.

The bank recommends gathering statements and receipts, recording balances, minimum payments, interest rates and due dates, then setting a target timeline. This separates the total holiday spend from the amount still financed through credit.

The avalanche method directs money available beyond required minimum payments to the debt with the highest interest rate. The snowball method instead puts that extra money toward the smallest balance while maintaining minimum payments on the other debts.

The Consumer Financial Protection Bureau’s explanation describes the same tradeoff: targeting the highest rate prioritizes the most expensive debt, while clearing smaller balances can make progress more visible. The latter can result in higher total interest costs when costlier balances remain outstanding longer.

UMB also proposes reviewing discretionary purchases and recurring subscriptions alongside income, essential living costs and savings goals. For the next holiday season, its examples include setting aside money for travel, gifts and hosting, potentially in a separate savings account.

The source’s 11% buy-now-pay-later figure requires a period distinction. Adobe’s October 2025 forecast projected that BNPL would support $20.2 billion of U.S. online spending from November 1 through December 31, 2025, up 11% year over year. That was a forecast of spending through BNPL, not a measured 11% increase in total household debt.