U.S. Credit Card Debt Hits Record $1.17 Trillion During Holiday Spending Surge

Despite record debt levels, holiday spending is set to reach nearly $1 trillion, driven by wage gains and modest inflation.

Americans collectively owe a record $1.17 trillion in credit card debt, with balances up 8.1% compared to last year.
A survey found that 36% of consumers took on holiday debt in 2024, averaging $1,181 per person, an increase from $1,028 in 2023.
Holiday spending between November 1 and December 31 is projected to hit a record $979.5 billion to $989 billion, according to the National Retail Federation.
While some shoppers leaned on credit cards out of necessity, others cited confidence in their ability to manage repayments despite high interest rates above 20%.
Economic factors like job and wage growth, along with modest inflation, contributed to robust consumer spending, even as 28% of Americans still carry debt from last year’s holiday season.