Consumers are taking on more debt this holiday, even as they grow less confident in the economy
Amid higher prices, more than one-third of shoppers racked up holiday debt this season, averaging $1,223, according to a recent report.
TL;DR
- 37% of Americans incurred holiday debt, averaging $1,223, an increase from last year.
- Parents incurred even higher holiday debt, averaging $1,324.
- High prices and tariffs are straining household budgets, particularly during the holidays.
- 63% of borrowers expect to take three months or longer to pay off holiday debt.
- Approximately 41% of those who took on debt this season are still paying off last year's bills.
- Credit card interest rates average over 20%.
- The Consumer Confidence Index dropped to its lowest reading since April, below levels indicating a potential recession.
- Despite low confidence, consumer spending has expanded, and holiday spending is forecast to exceed $1 trillion.
- The average credit card balance per consumer is now $6,523, up 2.2% year over year.
- More consumers are using additional liquidity this holiday season compared to last year.