Racked Up Debt During October Prime Day? Here’s Your Game Plan for Paying It Off

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Went overboard during Amazon’s October shopping event? Read on for tips on paying that debt off. 

Amazon’s October Prime Day, known as Prime Big Deal Days, took place on Oct. 10 and 11 this year. And Amazon itself says the event was a success.

During that two-day span, Prime members saved more than $1 billion across millions of deals. And the event “outpaced last year’s holiday kick-off event, with more Prime members shopping this year,” said Amazon in a mid-October press release.

If you shopped your heart out during October Prime Day, you may, at this point, already have several items checked off your holiday shopping list. That’s a good thing. But you might also already be sitting on a pile of credit card debt. That’s a bad thing.

Normally, when you’re looking at a credit card balance, a good bet is to try to slash all non-essential spending until it’s whittled down. But let’s be real. With the holidays approaching shortly, now’s hardly the time to kick off a no-spend streak. If anything, you may find yourself spending even more than usual between holiday gifts, decorations, and travel.

But that doesn’t mean your October Prime Day debt is loomed to linger forever. Here’s how to work on paying it off.

1. Minimize your holiday spending

It may not be reasonable to eliminate all holiday spending. But it may be doable to spend less than you normally would so as not to add too much to your existing debt pile.

Think about the holiday expenses you have upcoming and try your best to set priorities. If it’s important to you to visit family, charge a flight or rental car on your credit card. But then aim to go light on gifts. And if you’re staying local, instead of hosting a blow-out bash that’ll cost you hundreds of dollars in food and drink, make it a more low-key or potluck affair.

2. See if there’s a more cost-effective way to pay off your balance

You might owe money from your Prime Day spending on a credit card charging 16% interest. There may be an option to lower the interest rate on your debt so it’s easier to pay off.

One route to consider is a balance transfer. If you’re able to qualify for a 0% introductory offer, you may get a reprieve from racking up interest for what could be 12 months, 15 months, or even longer in some cases. Just be careful, though, because the interest rate on a 0% introductory offer can soar once that period of leeway comes to an end.

You could also look at rolling your credit card balance into a personal loan. That way, you’ll get the benefit of fixed monthly payments. And if you can snag, say, a 9% interest rate on that debt, that’s better than 16%.

But do know that personal loans tend to come with borrowing minimums. If your Prime Day balance isn’t so substantial, you may not need to borrow enough to qualify for a personal loan. That said, if you’re planning to pile onto that balance with holiday spending, it might push you over the edge. That’s not really a great thing, but it is a point to consider.

3. Get a side hustle

So you racked up Prime Day debt, and you may be looking at adding to it in the coming weeks thanks to the holidays. If you don’t want that debt to linger well into the new year, then you may need to get on board with the idea of a side hustle.

The good news is that the economy is in solid shape right now, so you may find that a second job is pretty easy to come by. And it might be especially easy to get a side hustle now given that many businesses are looking for extra help during the holiday rush. In fact, if you earn enough from a seasonal side hustle, you might even manage to pay off your Prime Day balance before 2024 rolls around.

It’s hard to say no to an event like Prime Day when there are so many great deals to be had. But if you’re now sitting in debt, the sooner you manage to pay it off, the more money you stand to save on interest. Plus, carrying credit card debt can be stressful, and you don’t want to start the new year with that dark cloud looming over your head. So if you’re able to get that debt paid off in short order, you’ll be better off for it.

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The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Maurie Backman has positions in Amazon. The Motley Fool has positions in and recommends Amazon. The Motley Fool has a disclosure policy.

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