Hilary Lanier puts her holiday shopping on credit every year, racking up debt that takes months to pay off. This season, production planners say the total balances on the four credit cards are in the five-figure range. “Prices are definitely higher,” she says.
Lanier, who buys gifts for her parents, grandparents, siblings, friends and co-workers, said it could take nine to 10 months to pay off the balance in time for next year’s holiday season. “I’ve tried to be conscientious and stick to a budget, but it’s a very vicious cycle,” said the 32-year-old from Charlotte, North Carolina.
Hilary Lanier, 32, lives in Charlotte, North Carolina.
Courtesy of Hilary Lanier
In fact, a new report from LendingTree shows that 37% of Americans have a holiday loan this year, averaging $1,223, up from $1,181 last year. For parents, the average amount was even higher: $1,324. The site surveyed more than 2,000 U.S. adults earlier this month.
“Tariffs and high prices continue to put pressure on household budgets, especially during the holidays,” Matt Schultz, chief consumer finance analyst at LendingTree, said in a statement.
“Just sticking to the same shopping list as last year can cost more now,” he says. “While people adjust as much as they can throughout the year, many are unwilling to scale back their holiday traditions, so it’s easy to see how these increased costs can lead to increased debt.”
Like Lanier, 63% of borrowers expect it to take more than three months to repay their debt, according to a LendingTree survey. About 41% of people who took on debt this season are still paying off last year’s bills.
“Having a month or two of holiday debt isn’t a big deal,” Schultz said. “When you extend that from six months to a year or more, the impact is significant because credit card interest rates are so high today.”
According to Bankrate, interest rates on credit cards currently average over 20%.
Disconnect between consumer spending and confidence
New data released Tuesday shows consumers are becoming more pessimistic about their financial situation overall.
The Conference Board’s consumer confidence index for December was 89.1, down 3.8 points from the previous month and the lowest reading since April, when President Trump’s tariffs first took effect. The index of future expectations remained stable at 70.7, well below the 80 level considered a sign of recession.
Still, other data shows shoppers continued to visit stores in the final weeks of the year, pointing to a growing disconnect between consumer spending and consumer sentiment.
Consumer spending rose 3.5% in the third quarter, after growing 2.5% in the second quarter, the Commerce Department said Tuesday. The National Retail Federation predicts that holiday spending will exceed $1 trillion for the first time, increasing by 3.7% to 4.2% in 2024.
Credit card balance over $6,500
Meanwhile, the amount Americans spend on credit cards continues to increase. According to TransUnion’s latest Credit Industry Insights Report, the average credit card balance per consumer is now $6,523, up 2.2% year over year from Q3 2025.
Average credit balances also increased in November compared to a year ago, according to another VantageScore report.
That shows more consumers are taking advantage of the additional liquidity than last holiday season, said Susan Fahey, executive vice president at the credit score developer.
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