Consumers spread more than Christmas cheer this holiday season; they also took on debt. In fact, according to LendingTree’s 10th annual Holiday Debt Report, 36% of Americans took on holiday debt this season, with 42% of them having their highest interest rate at 20.00% or higher.
The team at LendingTree surveyed over 2,000 Americans about their Christmas shopping and how they’ll manage their spending. Here’s what they found:
- 36% of Americans took on debt this holiday season, only 44% of which had planned to. Those who went into debt took on an average of $1,181, up from $1,028 in 2023.
- 60% of those who took on debt say they’re stressed about it, with 69% of parents of young children saying so.
- Of those who took on holiday debt, 65% put purchases on a credit card and 24% on a store card.
- Among the 73% participating in holiday gift-giving this season, 45% completed their shopping by the time the survey was fielded Dec. 10 to 12.
You can view the full study here: https://www.lendingtree.com/credit-cards/study/holiday-season-debt/
LendingTree’s chief credit analyst, Matt Schulz, says it’s fair to expect holiday debt to increase over the years:
“Inflation is still a big deal in this country, and it’s having a huge impact on people's finances, including their holiday spending,” he says. “While people make lots of sacrifices to deal with higher prices, many may not want to sacrifice at the holidays, so debts continue to rise.”