The gift-giving season has come and gone, and now Americans are evaluating how much they spent this holiday season. A new survey shows many Americans chose to pay with credit.
According to LendingTree, more than one-third of Americans took on additional debt this holiday season. The survey shows 36% of consumers decided to “put it on plastic” when it came to making purchases.
Americans ran up an average of $1,181 in credit card debt this year, up from $1,028 last year, that’s a 14% increase. The chief credit analyst at LendingTree says inflation was a key issue when it comes to the year-to-year jump.
About 48% of parents of young children said they were forced to take on debt this holiday season. Additionally, 42% of young people or millennials, between the ages of 28 and 43, also charged it.
Paying off the debt won’t come cheap. LendingTree found that many credit cards and store cards are charging interest rates of 20% or higher.
Coincidentally, New Year’s resolutions are right around the corner. A Bankrate survey of about 2,500 adults found that Americans’ No. 1 financial resolution and main goal for 2025 is to pay down debt. Nearly 90% said that’s a top priority over other financial objectives such as getting a better-paying job, saving for retirement or buying a new home.
Credit card debt in America recently surpassed the $1 trillion mark.
