What Happens If You Ignore Holiday Credit Card Bills?

The holidays feel magical… right up until January shows up with that credit card statement you definitely weren’t emotionally prepared for. Suddenly, the joy of giving turns into a very real “oh no, how did it add up this fast?” moment. And if you’ve ever felt tempted to ignore those bills and holiday debt, you’re not alone.

Holiday debt is incredibly common in Canada, and many people carry hundreds (sometimes thousands) of dollars into the new year because December spiralled just a little.

Ignoring those bills might feel like a temporary relief, but it sets off a chain reaction that can impact your credit, your stress levels, and your financial future longer than you’d expect.

Why Holiday Debt Is Particularly Challenging

Holiday debt hits differently because it’s wrapped in emotion. You’re spending for joy, not out of bad habits… which makes the financial “hangover” much harder to face.

Plus, January is tough. The energy dips, the bills rise, and it suddenly feels easier to avoid looking at your statements “just for now.” But holiday debt has a way of growing quickly, especially with credit card interest working behind the scenes.

What Happens When You Don’t Pay Your Holiday Credit Card Bills

Here’s what actually happens behind the scenes when holiday credit card debt goes ignored.

Days 1–30: The Initial Missed Payment

This first missed payment triggers late fees and extra interest. Your lender will send reminders (usually emails or friendly notifications) and your balance will start to climb faster than expected. The credit impact is small at this stage, but it’s the beginning of a slippery slope.

Days 31–60: Things Start to Escalate

By the second missed payment, the tone shifts. Fees increase, interest piles on, and your lender may freeze promotional rates or rewards. This is where paying off holiday debt becomes harder because the amount you owe grows even when you’re not spending a dime.

Days 61–90: Serious Credit Damage Begins

At this stage, your lender may report your account as delinquent. That’s when your credit score takes a noticeable hit. Other lenders might also reduce your available credit, making your overall financial picture feel even tighter.

Beyond 90 Days: Collections and Bigger Consequences

Once your account hits the 90-day mark, the lender may pass it to a collection agency. You’ll likely start getting calls or letters asking for payment. Additional fees can stack up, and in more severe cases, legal action becomes possible.

It’s not meant to scare you, it’s just what happens when holiday debt is ignored for months at a time.

The Hidden Costs of Ignoring Holiday Bills

Ignoring your holiday debt doesn’t just cost money, it drains your mental energy too.

The Compounding Interest Trap

That $400 shopping spree can easily balloon into $700 or more thanks to high interest rates. Credit card interest grows fast, and ignoring payments gives it full permission to run wild.

The Psychological Toll

Avoiding your bills might feel like self-care in the moment… until the guilt sneaks in. People often report trouble sleeping, constant financial anxiety, and a general sense of dread every time their phone pings with a bank notification. And emotional stress is a sign your holiday debt needs attention, not avoidance.

Signs Your Holiday Debt Is Becoming a Serious Problem

If you’re not sure whether your holiday debt has crossed into “uh-oh” territory, here’s what to look for.

Financial Warning Signs

• You’re relying too much on your credit to cover your essentials
• Your minimum payments are hard to keep up with
• Your credit cards are maxed or close to it

Behavioural Red Flags

Outside of financial red flags, you may also see new patterns emerge for yourself.

Now, you’re avoiding checking your accounts, dodging statements, or hoping the problem “fixes itself later.” If this sounds familiar, your holiday debt is starting to take control and not the other way around.

Practical Steps If You’ve Been Ignoring Holiday Bills

You can absolutely turn things around, even if you feel behind.

If You’ve Missed One Payment

Make a payment as soon as you can and reach out to your lender. Many are open to reversing the late fee if it’s your first time. Take a few minutes to review your holiday debt balance so you know what you’re dealing with.

If You’ve Missed Multiple Payments

This stage will need a bit more structure. Contact your lender to ask about hardship options or payment plans. Stop using that credit card until you’re caught up. And if you’re feeling stuck, credit counselling can help you map out a plan.

If Your Account Is in Collections

It feels scary, but you still have options. Ask for a clear breakdown of what you owe, take your time to understand it, and don’t agree to any payment plan on the spot. You may be able to negotiate or explore a more formal solution if the holiday debt has grown beyond your control.

Professional Debt Solutions for Overwhelming Holiday Debt

If your holiday debt has started to feel heavier than you expected, you’re not alone. And you’re definitely not stuck.

There are real solutions in Canada that can make things easier, whether that means combining everything into one simple payment, setting up a structured repayment plan, or exploring a consumer proposal if you need a bigger reset.

These options exist to help you take back control, create breathing room, and not to make you feel bad about how you got here.

Farber’s Licensed Insolvency Trustees (LITs) can walk you through each path in a clear, supportive way so you know exactly what’s possible and what might work best for your situation.

The Bottom Line

Ignoring holiday credit card bills might give you a momentary sense of “I’ll deal with it later,” but those balances have a sneaky way of getting louder (and pricier) the longer they wait. The upside? You can jump back into control at any point. There’s always a way forward, and you don’t have to figure it out alone.

If your holiday debt already feels overwhelming (or you just want a clear plan before things snowball), Farber’s debt experts are ready to help you sort it out.

Why not start the new year on good footing? Book a free, confidential consultation anytime. Future you is going to be so proud you tackled it instead of letting those bills keep stressing you out.