Many Americans are capping off the holidays with new debt balances. This season, 36% of American consumers took on holiday debt, according to a new survey from LendingTree.  Sad and the numbers  could be higher.

     Those who racked up balances this season took on an average of $1,181 in debt, up from $1,028 in 2023. However, that is still down from $1,549 in 2022, LendingTree found.  Less than half — 44% — of the people who took on debt expected to acquire those balances, a sign that this holiday season is still financially challenging for many people, according to Matt Schulz, chief credit analyst at LendingTree.

     Higher prices caused by inflation remain an issue for many individuals and families this holiday season, he said.  “Some of it is people just wanting to wrap up what’s been a difficult year by spreading a little joy, and maybe they ended up taking on a little bit of extra debt to do so,” Schulz said.Those most likely to take on debt this season include parents of young children, with 48%; millennials ages 28 to 43, with 42%; and individuals who earn $30,000 to $49,999, with 39%, according to LendingTree.  Consumers who went into debt over the holidays run the risk of still carrying those balances when next year’s holiday season comes around. Almost half of Americans still have debt from last year’s holidays, WalletHub recently found. Meanwhile, paying down debt is a top financial resolution for 2025,  according to a recent Bankrate survey.

       For those who want to get out of debt, it helps to get started as soon as possible, Schulz said.  Successfully knocking off those balances has its own reward in the way of freedom, said Laura Mattia, a certified financial planner and senior vice president at Wealth Enhancement Group in Sarasota, Florida, who works with clients at all levels of wealth.  “People love to be debt free,” Mattia said. “The idea of not owing anybody any money is extremely comforting.”