Every year, Hillary Lanier puts her holiday shopping on credit, racking up debt that takes months to pay off. This season, the production planner said her total balance across four credit cards is in the five-figure range. “It’s definitely higher prices,” she said.
Lanier, who buys gifts for her parents, grandparents, siblings, friends and coworkers, said it could take her nine to 10 months to pay down the balance — just in time for next year’s holiday season. “I’ve tried to be conscientious and sticking to my budget, but it’s a very vicious cycle,” said the 32-year-old, who lives in Charlotte, North Carolina.
In fact, 37% of Americans racked up holiday debt this year, at an average of $1,223 — up from $1,181 last year, according to a new report by LendingTree. For parents, the tally was even higher, averaging $1,324. The site polled more than 2,000 U.S. adults earlier this month.
“Tariffs and high prices keep straining household budgets, and that strain becomes especially clear during the holidays,” Matt Schulz, LendingTree’s chief consumer finance analyst, said in a statement.
“Even sticking to the same shopping list as last year can cost more now,” he said. “People adjust where they can throughout the year, but many just can’t bring themselves to scale back holiday traditions, so it’s easy to see how those higher costs can translate into rising debt.”
