Overview
- An AICPA–Harris Poll finds 79% plan to use credit cards for holiday spending, 52% don’t expect to pay the bill in full, and 17% expect to take more than six months to clear balances, with younger adults most likely to overshoot budgets.
- BNPL usage is widespread, and experts caution it can encourage higher spending, create multiple short-term bills, and affect credit profiles and future loan applications.
- Advisers recommend setting a firm total budget with per-person limits, tracking every purchase, and considering 0% intro APR cards only if the balance can be paid before the promotional period ends.
- Cost-saving tactics highlighted include Secret Santa or pooled gifts, homemade or experience presents, reusing decorations, asking guests to contribute dishes, shopping sales early and freezing items, booking travel in advance, and sourcing gifts from charity shops.
- Some experts advocate cash or prepaid methods—including loading retailer gift cards for online buys—to impose natural limits, as forecasts note higher expected prices and NRF projects 2025 holiday sales to top $1 trillion.