New York — The holiday season has left a heavier financial hangover for many Americans this year, as stubbornly high prices and persistent tariffs pushed average holiday credit card debt to $1,223, up from $1,181 in 2024. According to a LendingTree report, 37% of consumers accrued debt for their holiday spending, with parents averaging an even higher $1,324.

For individuals like 32-year-old Hillary Lanier from Charlotte, North Carolina, this debt initiates a punishing cycle. “It’s definitely higher prices,” said Lanier, who expects to spend nine to ten months paying off her five-figure balance across four cards—just in time for next year's holiday season. “I’ve tried to be conscientious... but it’s a very vicious cycle.” The report found that 63% of borrowers expect to need three months or longer to repay, and 41% are still carrying debt from the previous year's holidays.

A Growing Disconnect Between Spending and Sentiment

This rise in debt underscores a striking contradiction in the U.S. economy. While the National Retail Federation forecasts holiday spending will surpass $1 trillion for the first time, consumer confidence has slumped. The Conference Board's index hit its lowest level since April, with future expectations deep in territory that traditionally signals recession risk.

“Tariffs and high prices keep straining household budgets,” said LendingTree's Matt Schulz, noting that “even sticking to the same shopping list as last year can cost more now.” This environment has forced a difficult strategic pivot for households, who cut back in other areas but are reluctant to scale back holiday traditions, leading directly to higher balances.

The High-Cost Burden of Carrying Debt Forward

The long repayment timelines are particularly dangerous given current credit card interest rates, which average over 20%. “Carrying a month or two of holiday debt is no big deal,” Schulz warned. “Extend that out to six months to a year or longer and it becomes significant.” Data from TransUnion shows the average credit card balance per consumer has already climbed to $6,523, indicating that the holiday surge is adding pressure to an existing debt burden.

This trend highlights a precarious high-stakes financial balancing act for many families. As spending continues in a strained competitive ecosystem of rising costs, the reliance on high-interest credit creates a sustained headwind for personal finances, turning seasonal generosity into a prolonged strategic financial challenge that extends well into the new year.