2024 Holiday Shopping: Nearly 1 in 4 Americans Expect to Go Into Credit Card Debt

It’s the most wonderful time of the year! Or at the very least, it’s the busiest, especially when it comes to shopping. Americans will be hitting the stores and clicking “checkout” on their online shopping carts on gifts, travel, experiences, and decor during the 2024 holiday season. But are Americans budgeting for the holidays, and just how much money will they spend?

A new study from CardRates.com surveyed 1,000 Americans about their holiday shopping to better understand their spending habits and budgets during the busiest shopping season of the year.

The holiday season is notoriously expensive, from Americans buying presents to traveling to see loved ones. On average, respondents are expecting to spend $1,373 in total throughout the season. No matter how Americans spend money, 16% of those surveyed expect their holiday spending will cause them to go into debt. Even if they don’t expect to go into debt, 28% are still concerned about the possibility.

“One of the most alarming aspects of this study is the acceptance of debt. 16% of the respondents said they plan on spending more than they have for the holidays. If you’re among them, I urge caution,” said Erica Sandberg, Consumer Finance Expert for CardRates. “Unless you know that you can and will repay the amount you borrowed very quickly, you may regret that decision. You’ll be dealing with monthly payments that can make other expenses difficult to manage, and the interest can pile on fast.”

How does holiday shopping in 2024 compare to 2023? More than half (53%) said they don’t think there will be any difference in their shopping habits, while 29% said they’ll be spending less in 2024. Only 18% said they think they’ll spend more this year than last. 

The main expenses Americans will have during the holidays are gifts (92%), food and beverages (62%), and travel (28%). 

Most Americans (67%) have set a budget to help them navigate 2024 holiday spending. The average amount budgeted is $1,695, and 49% are very confident that they’ll stay within their budgets. One way holiday spending may be helped in 2024 is shopping around sale holidays, such as Black Friday or Cyber Monday, as 71% of respondents plan to shop on these major sale days.

One of the most popular ways Americans will finance their holiday spending is through credit cards, with 53% of respondents saying they plan to use them to cover holiday expenses. Credit cards offer convenience and reward opportunities, but they also come with the risk of debt if not managed carefully. 

Nearly 1 in 4 shoppers expect to incur credit card debt during the season, with the average American estimating they’ll have $1,173 in holiday-related credit card debt to pay off afterward. This can put a strain on finances, making it essential to develop a repayment strategy. 

While 20% of respondents said they plan to pay off their holiday debt immediately, 32% expect it will take them one to three months to fully settle their balances.

To avoid racking up holiday debt, many Americans are taking proactive measures. Some of the most common strategies include saving money in advance (62%), shopping during sales and discounts (57%), and creating a detailed holiday budget (52%). These steps can help manage spending and reduce financial stress during and after the holiday season.

“I do find it heartening that the majority of shoppers are preparing for a financially sound season. That 62% have been saving for all the additional purchases is especially great,” Erica said. “Every dollar you can spend from savings rather than borrow will help in the near and far future. You can still use your credit card, too. Charge for the consumer protection and, if your card has them, rewards. Then pay the balance as you shop. By implementing that process, you’ll steer clear of out-of-control bills.” 

Economic conditions are also playing a role in how much Americans plan to spend this year. With inflation and rising costs affecting everyday expenses, 22% of respondents said they intend to cut back significantly on their holiday spending, while 34% are making more moderate adjustments. Still, 39% reported that economic factors won’t impact their holiday budget.

With the majority of Americans planning to spend $1,000+ this holiday season, it’s no surprise that some purchases during this time of year come with regret. In fact, 54% of respondents have regretted overspending during past holiday seasons, with 30% reporting they overspent in 2023.

Americans expect to spend an average of $851 on gifts alone this year. Interestingly, 28% said they’re more likely to purchase experiences rather than physical gifts in 2024. For those who are shopping for tangible items, 28% are willing to spend more to support small businesses over big-box retailers. 

More than half (52%) of respondents said they plan to shop both online and in-store, with 39% doing all their shopping online and 9% shopping exclusively in stores. Most shoppers (57%) plan to start early this year to spread out their expenses.

In addition to gift buying, many will be traveling to visit loved ones or to take holiday vacations. This can add extra stress, with 23% of respondents expressing concerns about the financial pressure of holiday travel.

As the 2024 holiday season approaches, Americans are preparing for a busy period of spending, with many budgeting and shopping smartly to avoid holiday debt while still enjoying the celebrations. Thoughtful financial planning can help ensure the season is both joyful and manageable!

“Stop worrying that you aren’t giving enough. The study clearly shows that most consumers regretted overdoing gifts in the past, so if you’re among them, why do it again now?” Erica said. “Stick to your budget and resist extras. If you do, your New Year will be brighter because you won’t be dreading your December credit card statements.”

In November 2024, we surveyed 1,000 Americans on their spending habits during the holiday season. The age range of respondents was 18 to 78, with an average age of 41. Respondents identified as 49% female, 50% male, and 1% non-binary.

For media inquiries, contact media@cardrates.com.