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Post-Holiday Bills Hit as Credit Card Rates Bite, Counselors Push Quick Relief Steps

Heavy 2025 holiday spending left many households with revolving balances at roughly 20% APRs.

Overview

  • U.S. holiday spending rose an estimated 4–6% from last year to roughly $1.1–$1.3 trillion.
  • The National Retail Federation estimates the average American spent about $1,300 on holiday expenses.
  • About 60% of shoppers used credit cards for purchases, and roughly 46% of cardholders carry balances at average rates near 20%.
  • Making only minimum payments can stretch repayment for months or years and greatly increase total interest costs, lenders warn.
  • Nonprofit counselors advise calling issuers to request temporary rate reductions that could save up to about $500 over a year and using Avalanche or Snowball payoff strategies.