Consumers took on more debt to pay for this holiday shopping season. New findings by Lending Tree revealed 36% of Americans used some form of credit during the holidays, and 44% of them did not plan to. Up from 2023’s $1,028 per person average, U.S. shoppers added around $1,181 to their debt balances in 2024.

Roughly 65% of consumers made purchases with credit cards and almost one-quarter used a store card. Buy now, pay later financing paid for 21% of purchases and 19% of consumers took out a personal loan.

While inflation pushed expenses for rent, clothing, and essential food items up this year, Americans did not let high prices stop the holiday splurge. Most decided to spread the holiday cheer instead of worrying about the bills.

“If you were to only buy the same things you bought last Christmas, you’d likely have to spend more this year thanks to inflation. For many Americans, that means you either have to cut back on gifts or take on more debt,” said Matt Schulz, chief credit analyst at LendingTree. “While people make lots of sacrifices to deal with higher prices, many may not want to sacrifice at the holidays, so debts continue to rise.”

Balances on Credit Cards Rising

Leading the pack were parents of young children, with nearly half increasing their debt load by the end of the holiday shopping season. Just over 40% of millennials raised the amount they owe, and 39% of individuals earning $30,000 to $49,999 annually took on more debt.

About one-fifth of respondents to LendingTree’s survey admitted they are only making the minimum payments to their credit cards, with many of them charging interest rates at 20% or higher. Just about 21% of participants said it will take at least five months, possibly longer, to pay off their 2024 holiday shopping.

With that, 60% are stressed over their new debt and 42% have regrets about what they spent. Earlier this year, a survey by financial services company Primerica found that just over half of all Americans are stressed about finances.

In the Federal Reserve’s report on household debt, the agency revealed an uptick of 8.1% in the third quarter of 2024, which ended just before the holiday season started. Another survey, conducted by NerdWallet, found 28% of credit card users still need to pay back debts for gifts purchased last year.