LendingTree Survey: Holiday Debt Highest Since 2022

Rising prices and persistently high interest rates are driving more Americans to put holiday purchases on credit cards, leaving many consumers with balances that could take months to repay, according to a new survey from the online lending marketplace LendingTree.
More than one-third of U.S. consumers, 37%, took on holiday debt this season, averaging $1,223, the highest level since 2022, according to a new LendingTree survey of more than 2,000 adults conducted in mid-December. That is up from $1,181 last year.
Parents of children younger than 18 were hit especially hard, with nearly half, 48%, borrowing to cover holiday costs and averaging $1,324 in debt.
LendingTree found that 62% of holiday debtors put purchases on traditional credit cards, while 35% used buy-now, pay-later loans and 32% relied on store credit cards.
Nearly half of borrowers, 49%, said they expected to go into debt this season. Among those who borrowed, 63% said it would take three months or longer to pay off their balances, and 41% are still paying down debt from last year’s holidays.
High interest rates are compounding the problem. Roughly 40% of holiday borrowers said they are paying interest rates of 20% or more.
Average credit card interest rates have only recently dropped below 20%, according to Bankrate, keeping the cost of carrying balances elevated even as inflation has cooled from recent peaks.