Curated News
By: NewsRamp Editorial Staff
November 25, 2025
Holiday Debt Hangover Haunts Americans Entering 2025 Season
TLDR
- Consolidated Credit's study reveals that avoiding holiday debt hangover provides a financial advantage by preventing long-term stress and preserving future spending power.
- The study found 36% of Americans carry 2024 holiday debt while 50% plan to use credit cards again, creating a cycle of financial pressure.
- Addressing holiday debt through budgeting and financial education helps reduce family stress and builds economic resilience for better future financial health.
- A surprising 69% used credit cards for holiday spending last year, with many now experiencing the emotional toll of lingering debt.
Impact - Why it Matters
This study reveals a critical pattern of consumer financial stress that extends far beyond holiday spending. The persistence of debt from previous years combined with current economic pressures creates a compounding effect that impacts household financial stability, mental health, and long-term economic resilience. As inflation remains high and alternative payment methods like Buy Now, Pay Later gain popularity, consumers face increased risk of falling into debt cycles that can affect their ability to save for emergencies, invest for the future, and maintain financial security. The findings highlight the need for better financial education and planning, particularly as economic uncertainty continues to shape consumer behavior and spending patterns.
Summary
A new consumer study from nonprofit financial counseling agency Consolidated Credit reveals that many Americans are experiencing what's being called a "holiday debt hangover" as they enter the 2025 holiday season. The survey found that 36% of respondents are still carrying balances from their 2024 holiday shopping, creating a challenging financial situation where families must manage old debt while preparing for new seasonal expenses. April Lewis-Parks, Director of Education at Consolidated Credit, emphasizes that this isn't just about leftover balances but signals deeper financial stress as families enter the holidays already behind and making difficult trade-offs.
The study highlights significant shifts in consumer financial behavior, with 69% of Americans using credit cards for holiday expenses last year and 20% turning to Buy Now, Pay Later services. As the 2025 holidays approach, 50% plan to rely on credit cards again, while 36% expect to use only cash or debit—indicating more cautious planning. The emotional toll is substantial, with 39% feeling slightly or moderately stressed about holiday-related debt and 19% reporting extreme stress. Women in particular report higher levels of strain, while 64% of all respondents worry about inflation and rising prices, and 31% are concerned about overspending.
Consolidated Credit recommends creating a realistic holiday budget, limiting high-interest credit and BNPL usage without clear repayment strategies, and prioritizing paying off prior balances before accumulating new debt. The organization suggests using the holiday season as an opportunity to build financial resilience rather than just getting through the month. Recent data from Deloitte supports these concerns, projecting a 10% decline in holiday spending this year amid economic uncertainty, with 77% of consumers expecting higher prices on seasonal items.
Source Statement
This curated news summary relied on content disributed by Noticias Newswire. Read the original source here, Holiday Debt Hangover Haunts Americans Entering 2025 Season
