Holiday Debt Hangover Persists as Americans Enter 2025 Still Paying Off 2024 Seasonal Spending
TL;DR
Consolidated Credit's study reveals that avoiding holiday debt hangover provides a financial advantage by preventing long-term stress and preserving future spending power.
The study found 36% of Americans carry 2024 holiday debt while 50% plan to use credit cards again, creating a cycle of financial pressure.
Addressing holiday debt through budgeting and financial education helps reduce family stress and builds economic resilience for better future financial health.
A surprising 69% used credit cards for holiday spending last year, with many now experiencing the emotional toll of lingering debt.
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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 from nonprofit financial counseling agency Consolidated Credit. The survey found that 36% of respondents are carrying balances from 2024 holiday shopping while simultaneously preparing for new seasonal expenses, creating what researchers call a "holiday-debt hangover."
April Lewis-Parks, Director of Education at Consolidated Credit, emphasized this 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 burden extends beyond household budgets to indicate broader consumer stress. Last year, 69% of Americans used credit cards to cover holiday expenses, with 20% turning to Buy Now, Pay Later services. As the 2025 holidays approach, 50% plan to rely on credit cards again, while 36% expect to use only cash or debit, suggesting more cautious planning and spending restraint.
The emotional toll of carrying debt while preparing for new holiday spending is particularly apparent. Thirty-nine percent of respondents feel slightly or moderately stressed about holiday-related debt, while 19% report being very or extremely stressed. Women report higher levels of strain, with 64% expressing worry about inflation and rising prices and 31% concerned about overspending.
Recent data from Deloitte supports these findings, showing holiday spending is projected to decline around 10% this year amid economic uncertainty and inflation. Seventy-seven percent of consumers expect higher prices on seasonal items, indicating the accumulation of holiday debt creates ripple effects beyond December that impact savings, mental health, confidence and future spending decisions.
"Our findings show the 'holiday debt hangover' is real and growing," Lewis-Parks concluded. "Inflation, easy credit, and Buy Now Pay Later have created a perfect storm where short-term joy often leads to long-term stress." The study underscores how consumer financial behavior has shifted, with holiday debt becoming a persistent burden rather than a temporary seasonal concern.
Curated from Noticias Newswire
