How many Americans went into debt for Christmas 2025?

Key findings:

• One in five US adults (21%) borrowed money to cover Christmas-related spending in 2025.
• Gifts were the main driver of borrowing, with 77% of holiday borrowers using credit to pay for presents.
• Most borrowers (68%) took on less than $1,000 in Christmas-related debt.
• Credit cards were the most common borrowing method, used by 66% of those who borrowed.

Christmas season in the US is often a time of celebration, generosity, and increased spending. New data from YouGov Surveys: Serviced shows that for a notable portion of the population, this holiday spirit came with financial strain. According to the research, 21% of US adults borrowed money to help cover their 2025 Christmas-related expenses.

As discussions around inflation and consumer credit persist into 2026, the data sheds light on how Americans financed their holiday season and how long some expect to carry that debt into the new year.

Gifts were the biggest driver of holiday borrowing

Among those who borrowed, most did so to purchase gifts or presents (77%). Other common expenses included food and drink (38%) and covering everyday bills during the holiday period (32%). Just under one in four borrowed for clothing or appearance-related costs (24%), while fewer borrowed for travel (16%), social events (15%), or days out and activities (13%).

This range of spending suggests that borrowing wasn’t limited to luxury or discretionary purchases – for some, it helped fund necessities during the holiday stretch.

Most borrowed relatively small amounts, but not all

While the level of debt varied, 27% of those who borrowed say they took on less than $250. Another 20% borrowed between $250 and $499, and 21% reported borrowing between $500 and $999. More significant borrowing was less common: 14% took on between $1,000 and $1,999, and 11% borrowed $2,000 or more.

While many holiday borrowers kept their debt under $1,000, a meaningful portion assumed higher levels of financial obligation to cover seasonal costs.

Credit cards were the most common borrowing method

Credit cards were by far the most frequently used borrowing tool, used by 66% of holiday borrowers. Buy Now, Pay Later services were the next most common (24%), followed by borrowing from friends or family (13%) and personal loans (10%). A smaller share relied on bank overdrafts or personal lines of credit (12%) or payday and other high-cost short-term loans (6%).

Many plan to repay debt quickly, but not everyone

When asked about the current status of their holiday-related debt, repayment timelines varied by method. Among credit card users, 23% say their debt was already fully paid off, and 22% expect to repay within one month. However, 18% anticipate it would take longer than six months to clear their balances — including 9% who expected to take more than a year.

Buy Now, Pay Later users showed slightly longer payoff timelines: only 13% have repaid in full, while just over half expect to clear their balances within three months. Meanwhile, 41% of those who used payday loans say they have fully repaid their debt — the highest immediate repayment rate among borrowing types.

Among those who borrowed from friends or family, 23% have already repaid their debt, and another 23% expect to do so within the next month. But repayment expectations varied: 28% say it would take 4–6 months, while 14% anticipate repayment would take longer than half a year.

Overall, the data shows that while many holiday borrowers expect to resolve their debts quickly — especially those using credit cards and payday loans — a meaningful share foresee repayments stretching well into mid or late 2026. The range of timelines suggests that holiday debt, even for relatively small amounts, may linger for months depending on the borrowing method and individual financial circumstances.

Methodology: YouGov Surveys: Serviced provides quick survey results from nationally representative or targeted audiences in multiple markets. This study was conducted online on January 12-13, 2026, with a nationally representative sample of 1,262 adults (aged 18+ years) in the US, using a questionnaire designed by YouGov. Data figures have been weighted by age, race, gender, education, and region to be representative of all adults in the US (18 years or older), and reflect the latest population estimates from the Census Bureau’s American Community Survey.

Image: Getty Images