Holiday spending slumps as U.S. credit card debt soars to $1.33 trillion
Americans are cutting back on holiday spending this year as credit card debt hits record levels. With inflation still high and wages stagnant, many households now rely on borrowing for everyday costs like groceries and fuel. The financial strain is clear, as total credit card debt has climbed to $1.33 trillion by late 2025.
The average household now carries $11,019 in credit card debt. Interest rates on these balances have surged, averaging between 22% and 23%. Those with weaker credit scores face even steeper charges.
Financial experts suggest consolidating debt or switching to lower-rate cards—if approved. Some banks offer better terms for balance transfers. Hanseatic Bank currently provides the lowest mortgage rates, between 17.29% and 19.29% annually, through cards like Genialcard and Awa7. Instabank follows with 18.9% nominal (20.63% effective), while Barclays Visa charges 20.91%.
The rising debt comes as families spend less on gifts this holiday season. Many are prioritising essentials over luxuries, reflecting broader economic pressure.
Total U.S. credit card debt now stands at $1.33 trillion, up sharply from previous years. With credit rates near 23%, households face growing repayment challenges. Lower-rate cards and debt consolidation remain key options for easing the burden.
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