A new survey from Consolidated Credit, a nonprofit credit counseling organization, shows that 36 percent of Americans continue to carry debt from 2024 holiday spending as the 2025 season begins, creating what the group terms a “holiday-debt hangover.”
Released November 6, 2025, the findings highlight ongoing financial pressure for many households entering another period of seasonal expenses. The survey indicates that last year, 69 percent of respondents used credit cards for holiday costs, while 20 percent relied on Buy Now, Pay Later services. For the current year, 50 percent plan to use credit cards again, compared to 36 percent who intend to stick to cash or debit only.
April Lewis-Parks, director of education at Consolidated Credit, described the situation in the release. “This isn’t just about leftover balances,” Lewis-Parks said. “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.”
The survey also measured emotional impacts from carrying prior debt. Among respondents, 39 percent reported feeling slightly or moderately stressed about holiday-related debt, and 19 percent said they felt very or extremely stressed. Concerns extended to broader issues, with 64 percent worried about inflation and rising prices, and 31 percent focused on avoiding overspending. Women reported higher levels of strain in these areas.
Separate data from Deloitte’s 2025 Holiday Retail Survey, conducted in late summer and released in October, projects an average holiday spend of $1,595 per consumer this year, marking a 10 percent decline from 2024 levels. The Deloitte report notes that 77 percent of surveyed consumers anticipate higher prices on holiday items, aligning with persistent inflation concerns.
Consolidated Credit’s findings reflect shifts in payment methods over recent years. Buy Now, Pay Later options, offered by providers like Affirm and Klarna, allow purchases to be split into installments, often interest-free if paid on time, but late fees can apply. Credit card reliance remains common despite average interest rates exceeding 20 percent for many cards, according to Federal Reserve data.
The organization advises several steps for managing holiday finances. These include setting a realistic budget that accounts for existing debt, limiting high-interest credit and BNPL unless a repayment plan exists, and focusing on clearing prior balances first. Lewis-Parks added in the release, “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.”
Consolidated Credit, based in Florida, operates as a nonprofit agency accredited by the National Foundation for Credit Counseling. It provides free budget reviews and debt management plans that negotiate lower interest rates with creditors. The group has assisted over 10 million people since its founding more than 30 years ago.
For residents facing similar challenges, options include contacting certified counselors through the organization or local branches. Debt management plans typically consolidate payments into one monthly amount, often reducing rates to single digits for qualifying participants. The plans require closing credit accounts during enrollment but can resolve unsecured debt in three to five years.
The combined surveys point to a season of restrained spending. Deloitte found reductions across income groups, with retail goods down 14 percent and experiences down 6 percent year-over-year. Shoppers plan to buy an average of eight gifts, similar to last year, but cut back on non-gift items like hosting and decor by 22 percent.
As Black Friday and Cyber Monday approach, experts recommend tracking expenses in real time using apps or spreadsheets. Setting spending limits per category—gifts, travel, food—helps prevent impulse purchases. Paying more than the minimum on credit cards reduces interest accrual, while transferring balances to lower-rate cards can save if fees are managed.
The “holiday-debt hangover” pattern has appeared in prior years, but current economic factors like elevated prices for food and energy amplify it. Consolidated Credit encourages viewing the season as a chance to prioritize needs over wants, potentially through homemade gifts or shared experiences.