Average level of holiday season debt at $1,249

As the holiday season draws to a close, the gift-buying and merry-making is leaving consumers with a residue of debt.

According to a new survey from LendingTree, 36% of U.S. consumers incurred holiday debt this season, averaging $1,249. While this is up from 31% from the 2020 holiday season, the previous period had a higher average debt of $1,381.

Parents with children younger than 18 and millennials were most likely to take on holiday debt at 54% and 50%, respectively, and both demographics borrowed an average of $1,462.

LendingTree added that 40% of Americans used buy now, pay later financing for holiday gifts this year, up from 37% in 2020, and most holiday borrowers with debt put it on their credit cards 62%, with 23% relying on personal loans.

Furthermore, 82% of those with holiday debt will not pay it off within a month, but nearly 45% will try to consolidate their debt or open a balance transfer credit card.

“You can’t make a meaningful plan to tackle debt unless you know exactly how much money is coming in and going out of your household on a regular basis,” says Matt Schulz, LendingTree’s credit card expert. “Once you know that, you can take stock in your spending and shift things around to match your priorities, including freeing up money to pay down debt.”