Holiday Shoppers Carry Average $1,223 in New Debt as Confidence Slips

A recent report finds that more than one-third of holiday shoppers took on new debt this season, with the average amount coming in at $1,223. The increase in borrowing comes as consumers grapple with higher prices across goods and services and as measures of economic confidence show signs of softening.

The pattern—wider use of credit to fund seasonal spending—reflects a trade-off many households are making between maintaining holiday consumption and preserving financial stability. For some, tapping credit cards or taking short-term loans helped bridge the gap between budgets stretched by inflation and the desire to meet traditional holiday expectations. For others, the added balances may become a lingering burden if rates remain elevated and monthly payments rise.

Analysts say the trend is notable because rising consumer debt and falling confidence can combine to slow discretionary spending in the months ahead. If households prioritize debt repayment or cut back on nonessential purchases, retailers and certain service sectors could face weaker demand. At the same time, lenders and credit-card issuers may see higher balances but also greater risk if delinquencies rise.

The report’s snapshot does not capture the full diversity of household situations: some consumers increased borrowing but retained healthy emergency savings, while others entered the new year with tighter liquidity. The average figure—$1,223—masks a distribution of outcomes, from modest one-time balances to larger, potentially harder-to-manage obligations.

Policymakers and financial advisors frequently point to two key variables that will shape outcomes: the trajectory of inflation and the path for interest rates. If inflation eases and wage growth keeps pace, families may find it easier to absorb holiday-related debt. Conversely, if borrowing costs remain high, carrying sizable credit balances could translate to greater financial strain.

For consumers, experts recommend prioritizing high-interest debt paydown, reviewing budgets to identify discretionary cuts, and exploring balance-transfer or consolidation options only after weighing fees and long-term costs. For observers of the economy, the season’s borrowing behavior is a useful indicator of household resilience—and a potential early signal of shifts in future spending.