HONOLULU (HI Now) - While the holidays are often celebrated as the most wonderful time of the year, they can quickly become the most expensive. To help consumers navigate the pressure of seasonal shopping and manage potential debt, Laura Komoda, Vice President and Assistant Director of Private Banking at Central Pacific Bank, is sharing strategies to keep finances on track.
“The first step is to change our mindset. We need to remember that the holidays are about connection, not the price tag,” Komoda said.
She advises against feeling compelled to spend money simply to impress others. Instead, she suggests considering the “DIY option,” noting that handmade gifts—such as baked goods or photo albums—are often more meaningful than store-bought items.
Once a shopping list is established, Komoda recommends setting a hard dollar limit for gifts and using banking apps to track every purchase in real-time.
“If it’s not on the list, don’t buy it,” Komoda added.
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Managing the “Oops” Factor
For those who may have already exceeded their budget, the priority is addressing the debt immediately rather than letting it accumulate.
“It happens to the best of us. The key is to not let that high-interest credit card debt sit there and grow,” said Komoda.
She suggests identifying cards with the highest rates and paying those off first. If balances are too high, debt consolidation is a viable strategy. By taking out a loan with a lower interest rate to pay off credit cards, consumers can simplify their finances into one monthly payment.
Komoda specifically warned against predatory lenders offering “fast cash” or payday loans, citing hidden fees and astronomical interest rates that can trap consumers in a cycle of debt.
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Utilizing Home Equity and Credit Lines
Homeowners may have additional tools at their disposal, such as a Home Equity Line of Credit (HELOC). This allows borrowers to use their home’s equity to pay off high-interest cards at a typically lower rate.
Komoda noted that Central Pacific Bank offers HELOC options with introductory fixed rates to keep payments predictable. For non-homeowners, Personal Lines of Credit are available as a safer alternative to high-fee lenders.
Planning for Next Year
To avoid financial stress during the next holiday season, Komoda suggests starting the saving process immediately after this season ends.
“The best time to start is right in January. It sounds early, but ‘future you’ will thank you,” Komoda said.
She recommends automating the process by setting up transfers into a dedicated savings account every payday. To maximize these savings, consumers should look for High-Yield Savings Accounts or Certificates of Deposit (CDs).
“If you lock that money away for 6 to 12 months, it’s earning interest for you all year long,” Komoda noted. “By the time the holidays roll around again, you have a dedicated ‘gift fund’ ready to go!”
For more information on debt management or savings plans, visit any Central Pacific Bank branch or go to cpb.bank.
Ready to see how Central Pacific Bank can help you reach your financial goals? We got you – visit cpb.bank today!
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