A significant number of Americans are entering the 2025 holiday season still burdened by debt from last year's holiday spending, according to a new consumer study by nonprofit financial counseling agency Consolidated Credit. The survey found that 36% of respondents are carrying balances from 2024 holiday shopping while preparing for new seasonal expenses, creating what researchers call a "holiday-debt hangover." April Lewis-Parks, Director of Education at Consolidated Credit, emphasized that this phenomenon represents more than just leftover balances.
"It's a deeper signal of how many families are entering the holidays already behind, stressed and making trade-offs," Lewis-Parks stated. "With inflation still high, credit usage rising and BNPL taking off, the financial stakes have never felt higher." The financial data reveals concerning patterns in consumer behavior. During the 2024 holiday season, 69% of Americans used credit cards to cover expenses, while 20% turned to Buy Now, Pay Later services.
As the 2025 holidays approach, 50% plan to rely on credit cards again, though 36% expect to use only cash or debit—indicating more cautious planning and spending restraint. The emotional toll of carrying holiday debt is substantial, particularly among women who report higher stress levels. Survey results show 39% feel slightly or moderately stressed about holiday-related debt, while 19% report being very or extremely stressed.
Additionally, 64% are worried about inflation and rising prices, and 31% are concerned about overspending during the upcoming season. This holiday debt pattern reflects broader shifts in consumer financial behavior. Recent data from Deloitte projects holiday spending will decline approximately 10% this year amid economic uncertainty and inflation, with 77% of consumers expecting higher prices on seasonal items.
These trends suggest the accumulation of holiday debt creates ripple effects beyond December, impacting savings, mental health, confidence and future spending decisions. Lewis-Parks noted that "our findings show the 'holiday debt hangover' is real and growing. Inflation, easy credit, and Buy Now Pay Later have created a perfect storm where short-term joy often leads to long-term stress."
