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FAQ: Understanding the 2025 Holiday Debt Hangover and Its Impact on American Consumers
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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The 'holiday debt hangover' refers to the financial burden where consumers are still paying off balances from previous holiday spending while facing new seasonal expenses, creating ongoing financial stress.
According to the Consolidated Credit study, 36% of respondents are still carrying balances from 2024 holiday shopping as they enter the 2025 holiday season.
69% of Americans used credit cards to cover 2024 holiday expenses, while 20% turned to Buy Now, Pay Later (BNPL) services for their holiday spending.
The emotional toll includes 39% feeling slightly or moderately stressed about holiday-related debt, 19% reporting being very or extremely stressed, and 64% worried about inflation and rising prices.
For the 2025 holidays, 50% plan to rely on credit cards again, while 36% expect to use only cash or debit, indicating more cautious planning and spending restraint.
According to April Lewis-Parks, Director of Education at Consolidated Credit, inflation, easy credit availability, and the rise of Buy Now Pay Later services have created a 'perfect storm' where short-term holiday joy leads to long-term financial stress.
Consumers should create a realistic holiday budget and limit use of high-interest credit and BNPL plans unless they have a clear repayment strategy.
The accumulation of holiday debt creates ripple effects beyond December, impacting savings, mental health, confidence, and future spending decisions, with Deloitte projecting a 10% decline in holiday spending this year due to economic uncertainty.
The study was conducted by the nonprofit financial counseling agency Consolidated Credit and was released on November 25, 2025, from Fort Lauderdale, Florida.
Curated from Noticias Newswire
