When the Holidays Leave a Financial Hangover: How a Refinance Can Help
The holidays are meant to be joyful and they usually are. Family gatherings, travel, gifts, festive meals… it all adds up to great memories. But if you’re like many British Columbians, January can also bring a less-welcome souvenir: higher credit card balances and a bit of financial stress.
If holiday spending got a little out of control this year, take a breath. You’re not alone, and more importantly, you’re not stuck. As your mortgage broker, I want you to know there are practical, responsible ways to regain control and for some homeowners, refinancing can be one of them.
First Things First: No Judgment Here
Life happens. Costs are up across the board, and the holidays tend to magnify that. Using credit to get through a busy (and expensive) season doesn’t mean you’ve failed—it just means it’s time to reassess and make a plan.
That’s where a refinance can come into the picture.
What Is a Refinance, Really?
Refinancing means replacing your current mortgage with a new one (often with different terms) to better suit your current financial situation. In many cases, homeowners use refinancing to:
Access equity built up in their home
Consolidate higher-interest debts (like credit cards or lines of credit)
Lower overall monthly cash-flow strain
Simplify finances into one predictable payment
It’s not about spending more. It’s about restructuring smarter.
Why Refinancing Can Help After Holiday Debt
Here’s the big issue with holiday debt: it’s usually high-interest. Credit cards often charge 19–29% interest, which means a large chunk of your payment isn’t even touching the balance.
By refinancing and rolling that debt into your mortgage (which typically has a much lower interest rate), you may be able to:
Lower your total interest costs
Reduce monthly payments
Pay off debt faster with a clear plan
Sleep better knowing there’s a light at the end of the tunnel
It’s not magic—but it can be a powerful reset button when used responsibly.
Is Refinancing Always the Right Move?
Short answer: not always. And that’s an important conversation to have.
A refinance works best when:
You have sufficient equity in your home
Your income is stable
You’re committed to not re-accumulating the same debt
The long-term savings outweigh the costs
As a broker, my job isn’t to push you into a mortgage—it’s to help you evaluate whether this strategy genuinely improves your financial picture.
Sometimes the answer is “yes.” Sometimes it’s “not yet.” Both are okay.
The Emotional Side of Money Matters Too
I see it all the time: people feel embarrassed or stressed about post-holiday finances. But honestly? The people who reach out are the ones doing something right. They’re taking control instead of ignoring the problem.
Refinancing isn’t about fixing a mistake—it’s about adjusting to reality and moving forward with intention.
A More Hopeful Way to Look at It
Think of refinancing as a financial clean-up. You’re packing away the holiday decorations, resetting routines, and giving yourself a fresh start for the year ahead.
For many BC homeowners, it’s the step that turns:
“We’re just barely keeping up”
into“We actually have a plan.”
And that’s a powerful shift.
Let’s Talk It Through
If you’re wondering whether a refinance could help you recover from holiday spending—or if you just want a second opinion—reach out. A conversation costs nothing, and clarity is often the biggest relief of all.
You’ve worked hard to build your home and your life here in BC. With the right strategy, your mortgage can support that—not stress you out.
Here’s to a steadier, more confident year ahead.