As holiday shopping kicks into high gear, new surveys from Achieve and Debt.com reveal how mounting expenses and the growing reliance on credit are set to impact American households well into 2025.
Achieve’s survey found that the average American will spend over $2,000 this season, with transportation and hosting accounting for the largest shares. Travelers expect to spend $846 on average, while costs for hosting celebrations – covering food, parties, and holiday outfits – will reach $658. Gift spending follows closely, accounting for an average of $560 in people's seasonal spending, particularly for children and partners.
“While the holidays can be one of the best times of the entire year, they can also be the most stressful,” Brad Stroh, co-founder and co-CEO of Achieve, said in a statement. “And while most want to put money into making the season special for their loved ones, there can also be pressure from internal and external sources to spend beyond your means.”
Even coming into the holidays, many families have been hampered with financial obligations. Achieve reported that 81 percent of respondents carried personal debt into 2024, with 38 percent seeing their balances grow this year. As a result, 43 percent plan to cut holiday spending, and one in five don’t expect to recover financially from the season until May 2025 or later.
Meanwhile, Debt.com’s annual shopping survey highlights the increasing reliance on credit to fund holiday expenses. Two-thirds of respondents expect to borrow, with nearly one in four planning to take on at least $900 in debt.
“Americans are feeling squeezed this holiday season, and it’s not just inflation,” Howard Dvorkin, chairman of Debt.com, said separately.
In its poll of 1,000 Americans, Debt.com found 88 percent will use credit cards to support their holiday shopping, while 69 percent plan to combine them with Buy Now, Pay Later services.
The survey also pointed to the influence of AI on people's spending patterns. While 29 percent of respondents said they would hold the line and resist spedning more on purchases recommended by AI, two-thirds (65 percent) said they would dial up their purchases on AI-recommended gifts, while another 26 percent admitted they'd finance AI-recommended purchases.
“The combination of convenience tools like BNPL and the allure of AI-recommended gifts can make it dangerously easy to overspend," Dvorkin said. "This creates a perfect storm for debt that consumers will still be paying off long after the holiday lights come down.”
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