Consolidated Credit Survey: Americans Still Carrying Last Year's Holiday Debt -- and It's Shaping 2025 Decisions

FORT LAUDERDALE, Fla., Nov. 6, 2025 /PRNewswire/ -- As the 2025 holiday season approaches, a new consumer survey from nonprofit financial counseling organization Consolidated Credit reveals that many Americans are still paying off debt from last year's gifts and celebrations.

Dubbed the "holiday-debt hangover," this financial burden is not just a household concern—it's a larger indicator of consumer stress and budget pressure. The survey found that 36% of respondents are carrying balances from 2024 holiday shopping and face a difficult balancing act: managing old debt while preparing for new seasonal expenses.

"This isn't just about leftover balances," says April Lewis‑Parks, Director of Education at Consolidated Credit. "It's a deeper signal of how many families are entering the holidays already behind, stressed and making trade-offs. With inflation still high, credit usage rising and BNPL taking off, the financial stakes have never felt higher."

A significant percentage of Americans (69%) used credit cards to cover holiday expenses last year, with 20% turning to Buy Now, Pay Later (BNPL) services. Heading into the 2025 holidays, 50% plan to rely on credit cards again, while 36% expect to use only cash or debit, a signal of more cautious planning and spending restraint.

The Emotional Toll Is Apparent

Carrying debt while preparing for the new holiday season is taking a toll on people's emotional wellbeing, particularly among women who report higher levels of strain:

• 39% feel slightly or moderately stressed about holiday-related debt
• 19% say they are very or extremely stressed
• 64% are worried about inflation and rising prices
• 31% are concerned about overspending

Recent data illustrates that this is more than a seasonal problem, it's a broader shift in consumer financial behavior. According to a recent survey compiled by Deloitte, holiday spending is projected to decline around 10% this year amid economic uncertainty and inflation, with 77 % of consumers expecting higher prices on seasonal items.

These data points underscore how the accumulation of holiday debt is creating ripple effects beyond December—impacting savings, mental health, confidence and future spending decisions.

"Our findings show the 'holiday debt hangover' is real and growing. Inflation, easy credit, and Buy Now Pay Later have created a perfect storm where short-term joy often leads to long-term stress," says Lewis-Parks.

What consumers can do:

• Create a realistic holiday budget and adjust expectations accordingly, especially if you're still paying off last year's debt.
• Limit use of high-interest credit and BNPL plans unless you have a clear repayment strategy (BNPL usage is rising and may contribute to longer debt cycles).
• Prioritize paying off prior holiday balances before layering new debt.
• Use this holiday season as an opportunity to build financial resilience, not just "get through" the month.

About: Consolidated Credit is a non-profit organization, which has helped more than 10 million people overcome debt and financial challenges in 30 years. Their mission is to assist families throughout the United States to end financial crises and solve money management issues through education and counseling.

SOURCE Consolidated Credit