‘Tis the season for spending: More than half of Americans would go into debt to make someone they love happy

Shoppers are checking their lists early — 60% start before Black Friday

The majority of shoppers — roughly three out of every five — are hitting stores early this holiday season. Nearly 38% plan to begin in early November, but some (23%) are getting started even earlier, before Halloween. Another 2% have already finished shopping.

About a quarter of respondents intend to hold out for Black Friday or Cyber Monday deals to kick off their holiday shopping. The rest (about 13%) plan to wait until December to start making their lists and checking them twice.

For more than half of Americans, the urge to start early is a financial one. The biggest motivators for early shopping are catching deals (54%) and spreading out spending (52%).

Many consumers want to get the (snow)ball rolling to have a smoother shopping experience, not just a cheaper one. Some (47%) are shopping early to manage the stress of the season and feel more in control, or simply to avoid the crowds that often accompany the most wonderful time of the year (41%).

Regardless of how ahead — or behind — shoppers may be on their holiday to-do lists, they plan to do their shopping in a variety of venues. About 47% of Americans plan to purchase gifts in person at big-box stores, and 35% expect to hit the mall. Fewer than 30% say they plan to support small businesses in person with their holiday shopping.

And the top place people plan to purchase presents? Amazon. Almost two-thirds (65%) of shoppers will use the site for their holiday shopping.

Family comes first — even if it means overspending

Even as inflation remains elevated, many shoppers are splurging to make the season memorable, even if it’s at the expense of their budget. Amid the flurry of the holiday season, whom are Americans shopping for — and how much are they spending?

Perhaps unsurprisingly, a majority are pursuing gifts for their closest loved ones: their children (54%), a partner or spouse (51%) and parents (50%).

“Overspending may stem from interpersonal sensitivity and from identity fusion, where one’s self-worth becomes wrapped with family happiness.”

When we asked survey respondents whom they’re spending the most on, nearly one in three shoppers (32%) say they’re spending the most on their kids, followed by parents (20%) and partners (18%).

The largest share of respondents — about 39% — plan to spend under $500 on gifts, travel and decor this season. About 23% will spend between $500 and $1,000, and 32% expect to shell out between $1,000 and $3,000. Just a small share of consumers (6%) plan to spend more than $3,000.

Nancy West, a licensed clinical social worker based in Washington state, said there’s a simple explanation for why many people overextend themselves during the holidays. “For many of us, spending becomes a way to express love, create joy or make up for what we — or our families — might have gone without in the past,” she said. “There’s often a tender motivation underneath the overspending: a wish to make others happy, to feel connected or to live up to an image of what a ‘perfect’ holiday should look like.”

Is debt fueling holiday cheer?

While Americans are planning ahead to manage costs, early shopping doesn’t always mean less spending. Over half (57%) of consumers say they’d willingly go into debt — or take on more — to make someone they love happy this holiday season.

“Many people enter the season already carrying revolving credit card debt, so it can feel like, ‘What’s an extra $1,000 on gifts if I’m already in the red?’” said personal finance coach AJ Schneider.

Whether or not they’re overextending themselves, many consumers are banking on credit to make purchases during the holiday season. Three in five plan to pay with credit cards, and about one in six say they’ll rely on buy now, pay later services (like Affirm, Afterpay and Klarna).

While credit plays a major role in many Americans’ holiday spending, a significant share of shoppers will use other payment methods. About 57% plan on using debit, and about 40% will use cash. (Many experts recommend doing just that to help keep your seasonal spending in check — see our tips for managing holiday spending.)

1 in 3 Americans have hidden holiday debt from family and friends

Some shoppers might not break a sweat about being “in the red” during the holidays. But for many shoppers, feelings of shame are lurking under the tree. Almost a third (32%) of shoppers admit they’ve hidden holiday spending or debt from loved ones, and another 2% prefer not to answer.

When struggling to stay on top of holiday expenses, shoppers might face heavy thoughts, like “Why am I in this situation? I should be able to afford it. I can’t say no, but I’m struggling.” Thoughts like these can create a “shame spiral” that blocks long-term, strategic decision-making around your spending, Schneider said.

About 57% say they’d at least consider skipping gifts if it meant starting the new year debt-free (36% yes, 21% maybe). Interestingly, that’s equivalent to the share of shoppers who say they’d take on debt to make their loved ones happy during the holidays.

But there’s a significant swath of Americans who wouldn’t let debt rein in their holiday spending: 43% say they wouldn’t skip gifts this year, even if doing so would set them up for financial freedom in 2026.

“For many, spending becomes an emotional way to express love or even redemption. During the holidays, this impulse intensifies,” said Jenny Maenpaa, a licensed clinical social worker in New York. “Overspending may stem from interpersonal sensitivity and from identity fusion, where one’s self-worth becomes wrapped with family happiness.”

Debt the halls: The “gift” that keeps on giving

Shoppers might be willing to take on debt in pursuit of the perfect holiday, but how does it feel when they do?

“Debt is rarely just about money — it’s about emotion, too,” said West, the social worker from Washington. “Many people carry deep shame or self-blame about owing money, especially when it’s tied to wanting to make others happy. That shame can feel isolating and heavy, as if debt reflects a personal failure rather than a very common life experience.”

Indeed, more than 31% of shoppers say the idea of taking on holiday debt stresses them out, but they’ll “deal with it later.”

When asked how they’d feel if someone went into debt to buy them a gift, a third of respondents say they’d be grateful but feel guilty, 18% say they’d feel honored, and a few (14%) say they’d be concerned for that person’s finances — so much so that they wouldn’t accept the gift.

Where Americans carry the most credit card debt

Across the country, credit card balances are high — and growing. As of the fourth quarter of 2024, the average credit card balance nationwide is $4,180, according to the Federal Reserve Bank of New York. That’s an increase of more than 23% over the last five years, and an increase of more than 53% over the last decade.

Consumers in some areas are carrying significantly more debt than others. Residents of Washington, D.C., carry the highest balance per capita: $5,360. (To put it in perspective, that’s 82% of the median monthly income in Washington, D.C.) Alaska ($5,170) and Hawaii ($5,030) aren’t far behind.

But a different state takes the lead for where credit card balances have been rising the most. Nevada has the seventh-highest credit card balance per capita ($4,820), but the Silver State ranks first for the steepest balance increases — not only year over year (7.3%), but also over the past five years (33%) and over the past decade (82%).

The biggest holiday stressor isn’t money — it’s finding the perfect gift

Though many Americans are decking the halls with debt this season, money isn’t the top stressor reported by holiday shoppers. About 45% of respondents say that coming up with gift ideas is actually the most stressful part of the season.

That said, a fair share of shoppers (42%) are significantly concerned about costs, and about 35% are highly stressed about finding deals or sales. A third of shoppers say crowds and busy stores are a top stressor.

More than one in five shoppers (21%) say family expectations or pressure is a major stressor, a phenomenon that Maenpaa, the social worker from New York, knows all too well.

When consumers go into debt to give, the sacrifice often comes from “a desire to be seen as ‘caring enough,’” she said. “For some, buying the ‘perfect gift’ compensates for guilt, distance or (other) shortcomings.”

Move over, elves: Algorithms are the new holiday helpers

For some shoppers, Santa’s workshop looks a little bit different this year. More than a quarter of consumers (26%) are using artificial intelligence tools like ChatGPT to generate gift ideas, and more than a third (37%) are turning to social media platforms like TikTok, Instagram and Facebook for inspiration.

As the holidays approach, shoppers can get overwhelmed by the sheer abundance of choices, said Ross Steinman, a psychology professor at Widener University. To alleviate this pressure and stress, many Americans are “outsourcing” to these digital tools to help reduce decision fatigue.

“AI-generated recommendations and curated social media content act as cognitive shortcuts that simplify complex decisions,” said Steinman.

Almost 3 in 10 shoppers say they’re influenced to shop online by viral or trending products or social recommendations. But the instinct to save matters most: 71% of shoppers say that lower prices lead them online, and 58% cite the “convenience factor” (streamlined checkout, fast shipping, etc.) as a key motivator.

How to keep the holidays merry — and your finances bright

“The challenge of the holidays lies in maintaining discipline with your budgets,” said Cynthia Chen, CEO and founder of Kikoff, a credit-building platform. “By January, bills begin to accumulate, and the hidden cost of interest becomes apparent. What may have seemed like manageable spending in December can quickly escalate into months of trying to catch up.”

Try these tips to manage your spending this holiday season and keep the focus where it should be: on meaningful moments with the ones you love.

• Set a realistic holiday budget before shopping begins. “A common mistake is neglecting to budget for everyday bills while prioritizing seasonal expenses. Rent, utilities, loan payments and groceries don’t stop during December, but with gifts, travel and celebrations taking center stage, many underestimate their regular financial obligations,” said Chen.
• Buy with cash or debit to stay within your limits. Credit cards and buy now, pay later services provide the instant gratification of a purchase while delaying the financial consequences. Try using cash or swiping your debit card instead, so there’s a firm and clear limit on how much you can actually spend this season.
• If you do need to rely on credit, use it strategically. “Have a clear repayment plan, know your interest rates, and avoid borrowing more than you can pay off within a few billing cycles. The goal is to enjoy the season without setting yourself up for a financial burnout in the new year,” said Chen.
• Experiment with other kinds of gift giving. Generosity isn’t only measured in dollars and cents. You can show your loved ones how much you care by being generous with your time and energy, too. “Focus on shared experiences, time together or thoughtful gestures instead of high-priced items,” Chen said.
• Limit how much gift-related content you consume. “When your feed is full of beautiful, targeted products, it’s easier to overspend without realizing it,” said Chen. (The same goes for curated gift guides, helpful as they can be for inspiration.) Try muting or unfollowing brands and influencers that you know might be tempting. Or, set limits on your phone apps to spend less time on social media.

Even with high balances, you can end the year in high spirits

If you’re juggling steep credit card balances along with the jingle bells and mistletoe, don’t wait until you ring in the new year to start investigating your options for paying down your debts.

From the “debt snowball” method (starting with the smallest balances to build momentum) or the “debt avalanche” approach (tackling the balances with the highest interest rates first) to debt consolidation or credit counseling services, there’s a multitude of tools and methods to get things back on track.

Above all else, reframe your holiday debt as a problem that can be solved, not a personal failing. “Approaching debt with curiosity and self-compassion — rather than harsh self-judgment — can open space for problem-solving and emotional relief,” said West. “It’s not about being perfect with money; it’s about being honest with ourselves and making choices that feel sustainable and kind.”

In the meantime, Schneider, the personal finance coach, encouraged shoppers to ask themselves before swiping: “Is it a gift, or is it guilt?”

“The most generous thing I can offer my family is a regulated, resourced version of me in January,” said Schneider. “That usually looks like a thoughtful gift within a boundary, not a balance I’ll still be carrying next fall.”

Struggling with debt? You’re not alone, and you have options. Check out our hub of debt management resources to get started.

Methodology

ConsumerAffairs surveyed 1,000 Americans planning to shop for the holidays in 2025 to learn how much they expect to spend, whom they’re shopping for and their attitudes and expectations around holiday debt.

The survey was conducted via Pollfish in October 2025, and results were poststratified by characteristics including age and gender to better reflect the U.S. population. Some survey questions allowed multiple responses. Percentages are in some cases rounded and may not total to 100%.

Reference policy

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Questions?

For questions about the data or if you'd like to set up an interview, please contact rsowell@consumeraffairs.com.