Holiday debt can linger until mid-2025, Achieve survey finds

Consumers view 2024 as a top financially challenging year and the high price of spending for the holidays causes stress and anxiety for many

SAN MATEO, Calif., Dec. 10, 2024 /PRNewswire/ -- The holidays aren't cheap. The average American will spend over $2,000 this season, according to a new study commissioned by Achieve, the leader in digital personal finance, and conducted by Talker Research. The survey of 2,000 Americans who celebrate a winter holiday examined the cost breakdown of the holiday season – as well as how Americans have been impacted by 2024's financially challenging climate.

According to the results, the most expensive holiday category is transportation, as those planning to travel this year (64%) will spend $846 on average. "Putting on" the holidays is the next largest expense: Respondents reported they'll spend $658, on average, in this category. The most expensive items included purchasing holiday food and refreshments ($155), throwing parties ($123), and holiday clothing and outfits ($107). The gifts category is next on the list, with Americans planning to spend an average of $560 on their loved ones this year, with the most money being spent on kids ($117) and partners ($92).

"While the holidays can be one of the best times of the entire year, they can also be the most stressful," said Brad Stroh, co-Founder and co-CEO of Achieve. "And while most want to put money into making the season special for their loved ones, there can also be pressure from internal and external sources to spend beyond your means. It's important to take a step back and evaluate your spending habits during the holidays."

Shifting focus to the broader economic environment, the majority of respondents (61%) felt that 2024 was in their top five most financially challenging years ever. In the survey, 81% reported having personal debt in 2024. Among these respondents, 38% reported their debt increased this year, while 44% said their debt stayed the same and 18% said their debt decreased.

Possibly because of this, more than four in 10 Americans (43%) were "going lean" and planning to spend less this year compared to years past. Stress was also a significant factor when thinking about the holidays, with 65% stating they are stressed about their holiday spending this year and 73% indicating their financial stress takes away from their enjoyment of the season. For nearly one in five (17%), their financial anxiety completely ruins their enjoyment of the season.

Looking ahead, a fifth (20%) believe they won't financially recover from the 2024 holiday season until May 2025 or later. When looking at how they will pay for the holidays, respondents reported that a fifth of their holiday expenses (20%) will be put on a credit card. In fact, 28% already have or plan to open a new line of credit to cover their holiday spending. According to the research, 37% of those who celebrate the holidays have gone into debt in years past. Nearly one in five (17%) think it's likely they'll go into holiday debt this year.

Examining how debt influences everyday spending, respondents said they've spent more on groceries (48%), rent or mortgage payments (30%), insurance (29%), medical expenses (26%) and daily transportation (26%) in 2024 compared to 2023. When looking at areas to trim to make ends meet, Americans have spent/contributed less to their discretionary spending (39%), emergency savings (26%), retirement savings (20%), gifts (31%) and travel (25%) in 2024 compared to 2023.

"This study shines a light on how such a financially challenging year is impacting the holiday season and how much people are able to enjoy it," said Stroh. "For people who are struggling this season, or in general, there are many ways to take simple steps to move their financial situation forward. These can range from establishing and adhering to a budget, to talking to a financial expert, to taking a break from your credit card entirely."

Methodology

Talker Research surveyed 2,000 Americans who celebrate a winter holiday; the survey was commissioned by Achieve and administered and conducted online by Talker Research between Nov. 5 and Nov. 8, 2024.

About Achieve

Achieve, THE digital personal finance company, helps everyday people get on, and stay on, the path to a better financial future. Achieve pairs proprietary data and analytics with personalized support to offer personal loans, home equity loans, debt resolution and debt consolidation, along with financial tips and education and free mobile apps: Achieve MoLO® (Money Left Over) and Achieve GOOD™ (Get Out Of Debt). Achieve has 2,500 dedicated teammates across the country, with hubs in Arizona, California, Florida and Texas. Achieve is frequently recognized as a Best Place to Work.

Achieve refers to the global organization and may denote one or more affiliates of Achieve Company, including Achieve.com (NMLS ID #138464); Achieve Home Loans, Equal Housing Lender (NMLS ID #1810501); Achieve Personal Loans (NMLS ID #227977); Achieve Resolution (NMLS ID # 1248929) and Freedom Financial Asset Management (CRD #170229).

Contact
Erica Bigley
Vice President
Corporate Communications
ebigley@achieve.com
415-710-9006

Austin Kilgore
Director
Corporate Communications
akilgore@achieve.com
214-908-5097

SOURCE Achieve