Holiday Debt Hangover: Millions Still Paying for Last Year’s Gifts

The holiday shopping season is here, but a staggering number of people are still dealing with debt from last year’s purchases. Experts call this a “holiday debt hangover,” and new data shows just how widespread the problem has become.

A new survey from Consolidated Credit finds 36% of people are carrying balances from 2024 gift purchases.Nearly 70% of all shoppers used credit cards for last year’s holiday spending, while another 20% turned to buy now, pay later services.

Now those same shoppers face a difficult choice: managing old debt while preparing for new season expenses. This isn’t just about leftover balances. it’s a deeper sign of financial strain as families juggle inflation, credit use, and rising prices, according to April Lewis-Parks, Director of Education at Consolidated credit.

The emotional toll of holiday debt

Carrying debt while preparing for the new holiday season is taking a toll on people’s emotional wellbeing, notably among women.