Don’t miss your student loan payments to afford a vacation. Do this instead

The holiday season can be expensive, especially if you’re juggling student loan payments. Social pressure and the expectation to give your loved ones memorable gifts can push you to overspend and go further into debt. Currently, 8 million borrowers have put their student loan payments on hold due to legal challenges related to the Biden administration’s Savings for Educational Value relief plan. But that doesn’t apply to the millions of additional borrowers who are still squeezing monthly student loan payments into their budgets.

As a student loan expert, I never recommend letting nonessential expenses put you in a bad financial position for months or years. But I also know that accidents happen. If you’re worried about affording vacation time and student loan payments, here are some tips on how to prioritize both, as well as tips on what to do if your payments are behind.

Don’t miss a student loan payment so you have extra money for shopping.

Missing student loan payments can have serious consequences, such as negative reporting to the credit bureaus. This can harm your credit rating and history. And you’ll still have to make up the missed payments, which may incur late fees and accrued interest.

If you’re concerned that your monthly student loan payment is too high, take a look at federal income-driven student loan repayment plans. These plans will base your monthly payments on your income rather than your outstanding balance, which may lower your monthly payment.

Enrolling in autopayment can help you prioritize your student loan payments and potentially secure a small interest rate reduction. However, it’s critical to manage your bank account balances to avoid overspending, which can lead to fees and other complications if you don’t have enough funds to cover your scheduled payments.

Read more: How the Fed’s Interest Rate Decisions Affect Student Loan Borrowers

Be honest about your budget

The holiday season can be a busy and expensive time. Once you fall behind, you may start to spiral and take on even more debt to survive—such as buy now, pay later plans and credit cards. According to Edvisors, one of the biggest “wealth killers” is debt, especially high-interest credit card debt. Not just during the holiday season, but with all expenses, the goal is to avoid overspending and maintain financial stability.

It may seem obvious, but analyzing your budget before shopping for holiday sales is critical to staying on track. Look for any restrictions, such as monthly bills and necessities. Figure out what’s left to determine a realistic holiday shopping budget.

Talk to your friends and family

The practice of budgeting out loud can come in handy if you’re on a tight budget. This social media trend encourages you to let your friends and family know that you’re prioritizing certain financial goals, like paying off student loans, and to let them know that you may have to forego costly activities or look for affordable alternatives.

What does it look like? Here are some suggestions:

Gift exchange

Instead of buying gifts for everyone on your list, encourage your friends or family to participate in Secret Santa or White Elephant. This will allow you to buy fewer gifts while still celebrating with loved ones.

One of my favorite family traditions is the white elephant gift exchange that I do with my cousins. We have set gift limits between $10 and $25 to make gift shopping easier. It’s a fun time for everyone, and it allows us to save some money in the process.

Find deals that fit your budget

As you narrow down your gift list, be sure to keep an eye out for deals to save even more. I always have good luck shopping at my local wholesale club. I can do gift card deals, such as two $50 gift cards for $80, which is an automatic 20% savings. Just remember that these featured deals may sell out as the holidays approach, so plan ahead and remember to stay within your budget.

Think beyond gifts

You also don’t have to give gifts to enjoy the season. Instead, you can send cards with personalized, heartfelt messages or create gifts from materials you already have. If you haven’t been in touch with loved ones for a while, prioritize inviting them over for coffee or dinner after the holiday season to ease the strain on your budget in the coming weeks.

Read more: Don’t give in to gift-giving guilt this holiday season. Expert tips for reducing debt and overspending

What to do if you’re behind on your student loan payments

If you accidentally overspend and can’t keep up with your loan payments, it’s time to call your loan servicer or lender. Federal student loan programs may have the ability to change your repayment plan or defer payments.

On the other hand, private student loan lenders may be able to put your loan into deferment status to give you some breathing room. Just make sure you understand how this will impact your credit and its benefits in the future. For example, interest may continue to accrue. But it’s better to call before you fall behind, because the longer you wait, the fewer options you have.