The Credit Card Hangover Is Real
The presents have been opened. The decorations are coming down. And somewhere in a pile of receipts and credit card statements, there's a balance waiting to follow you into the new year.
Here's a number that should get your attention: 36% of Americans took on holiday debt this year, averaging $1,181 per person. According to recent research, 63% of those people expect it to take three months or longer to pay it off. Even worse? 41% are still paying off last year's holiday debt.
Read that again. Four in ten Americans are stacking new holiday debt on top of old holiday debt. That's not a payment plan—that's a cycle that never ends.
The Math That Works Against You
"It's just a little holiday spending. I'll pay it off eventually."
This is what most people tell themselves. And it's why most people stay stuck.
Here's the reality: The average credit card APR right now is 21.91%—up significantly from just a few years ago. Let's do the math on that $1,181 average holiday balance.
If you make minimum payments (around 2% of the balance, or about $24 per month), it would take you seven years to pay off that debt—and you'd pay over $700 in interest alone.
Seven years. For one holiday season. That sweater your uncle wore once is now costing you nearly double its price tag.
Why Credit Card Companies Love the Holidays
This isn't an accident. Credit card companies are counting on you to shrug, make the minimum payment, and stay stuck. Every month you carry that balance, they profit. Every month you don't have a plan, they win.
But here's the good news: You don't have to be one of the 41% still paying off last year's gifts. You can attack this debt with intensity, knock it out fast, and actually start next year ahead instead of behind.
Key Takeaway
Holiday debt won't "work itself out" with minimum payments—the math guarantees you'll pay for years and spend hundreds in interest. But with a focused plan, you can break the cycle and eliminate this debt in months, not years.