Holiday Spending Regrets Are on the Rise After Americans Wracked Up Debt Using Credit Cards and BNPL

In February 2023, MoneyGeek surveyed a nationally representative sample of 964 U.S. adults to understand how much Americans spent over the holidays, how they financed that spending and how they feel about it now. Respondents had to have at least one credit card and have made purchases during the 2022 holidays to be included in the survey. Despite the broader concern of inflation, MoneyGeek found that Americans spent 14% more during the 2022 holiday season than in 2021, primarily using credit cards; they also have more regrets about that spending than they did last year, and many are still dealing with holiday debt.

• In 2022, the average American spent $1,288 on holiday-related expenses — up 14% from 2021.

• 23% of people wish they had spent less over the holidays — up 4% from 2021.

• Americans who wish they’d spent less over the holidays spent 24% more than those who were happy with their spending.

• The average respondent used credit cards for 68% of their holiday expenses and buy now, pay later (BNPL) financing for 18%.

• 44% of Americans hadn’t paid off their holiday bills as of February, up 4% from 2021.

• Millennials and Gen Zers were the most likely generations to regret their holiday spending. They were also most likely to have not paid off their 2022 holiday debt by February.

The average survey respondent spent $1,288 on holiday-related purchases in 2022, up from $1,131 in 2021. Shoppers used credit cards for 68% of these expenses and BNPL for 18%.

Of those surveyed, one-third (34%) put more than 90% of their holiday expenses on their credit cards. People with exceptional credit (indicated by an 800–850 credit score) put the largest amount of their overall spending — 78% of it — on credit cards. They were also the least likely to use buy now, pay later financing.

Perhaps more important than the absolute dollars spent during the holidays is how much debt people are still paying off. As of February 11, 2023, 44% of Americans still needed to pay off their 2022 holiday debt, up from 40% in 2021. A little over half of millennial respondents (people between 29–46 years old) still had unpaid holiday debt, compared to 32% of baby boomers (people between 59–77 years old).

Survey respondents with exceptional credit were more likely than those with lower credit scores to have paid off their balances — just 16% of these Americans had not paid off their holiday debt. Outside the holidays, people with exceptional credit carried debt for an average of two months, half the time of people with very good credit (indicated by a 740–799 credit score) did (four months), on average.

The average respondent carried a credit card balance for four months out of the year, which includes respondents who didn’t carry any balance. Excluding people who paid off their credit cards each month, the average respondent carried a balance for seven months out of the year.

Going into debt for Christmas may not have been the best choice for many survey respondents.

Nearly one in four (23%) said they wish they had spent less over the holiday season, up from 19% in 2021.

Millennials and Gen Zers were the most likely respondents to wish they had spent less, while baby boomers were the most pleased with their spending.

Of the respondents that regretted their spending, 63% also reported having outstanding credit card debt — and the lower a respondent’s credit score was, the more likely they were to regret their spending.

MoneyGeek’s survey results echo broader seasonal spending trends — generally, consumer spending tends to peak in November and December during the holiday shopping season.

According to the Federal Reserve Bank of New York, household debt in the U.S. increased to 16.9 trillion in the fourth quarter of 2022, up $394 billion from the third quarter of that same year.

Credit card debt typically rises steadily at the end of the year, then gradually decreases through March as consumers pay off holiday debt. However, credit card debt reached new highs during the 2022 holiday season. U.S. credit card debt increased by $61 billion from the third quarter to the fourth quarter of 2022 to reach $986 billion, far exceeding the previous pre-pandemic high of $927 billion recorded in Q4 2019.

Using SurveyMonkey, MoneyGeek surveyed 964 individuals in a nationally representative population who indicated that they had spent any amount to celebrate the holidays and had at least one credit card. Responses from individuals aged 78 and older were excluded from generational breakdowns due to a lack of sufficient sample size for this cohort. The survey was fielded on February 11, 2023.