More Than 1 In 10 People Say Holiday Spending 'Blew Up' Their Credit Card Debt

The holiday season wasn't just merry–it was costly, with 1 in 10 consumers admitting that they went over their budget holiday shopping.

A WalletHub survey showed over 10% of consumers reported their holiday spending "blew up" their credit card debt.

Analysis by the Bank of America Institute showed December's credit card spending surged, clocking in as the second-fastest year-on-year growth in 2024.

Between November 1 and December 24 consumers bought more retail merchandise in-store, with figures climbing by 2.9% compared to 2023, and online sales rising by 6.7%, a Mastercard report revealed.

Consumers also spent more money dining out: sales rose by 6.3% in restaurants and clothes shopping increased 3.6% compared to last year.

As the dust settles from consumers spending money on services and retail repayment has become an ongoing challenge, with 46% of Americans lacking a debt payoff plan.

Some consumers are turning to balance transfers, with almost 1 in 5 planning to open a new credit to absorb their holiday shopping debt.

The growing cost of inflation continues to be at the forefront of Americans' minds with six times more fearing rising prices over mounting credit card balances.

Findings show nearly 20% of consumers are anticipating higher credit card debt by the end of 2025.

Findings by LendingTree, published days after Christmas, revealed that 1 in 3 Americans took on holiday debt, with the average amount being $1,100.

According to the Federal Reserve, the spending on credit cards increased from $15.05 billion in 2019 to $21.76 billion in 2024, nearly a 44.5% increase.