36% of Americans Took on Holiday Debt This Year

According to a new survey by LendingTree, 36% of American consumers have taken on holiday debt this season. The debt balance, which was $1,028 in 2023, has increased to an average of $1,181 this season.

Matt Schulz, LendingTree's chief credit analyst, noted that less than half of those borrowing - 44% - expected to take on these balances, indicating that this holiday season is still financially challenging for many. Schulz stated that high prices caused by inflation continue to be a problem for many individuals and families this holiday season. "Part of this is people wanting to end a tough year on a high note and perhaps taking on a bit of extra debt to do so," he said.

LendingTree found that those most likely to take on debt this season include 48% of parents of young children, 42% of Millennials aged 28 to 43, and 39% of individuals earning between $30,000 and $49,999. According to LendingTree, 42% of those taking on holiday debt reported that they typically pay interest rates of 20% or higher, often through credit cards or store cards.