The holiday season can bring joy, connection, and warm memories. However, it can encourage overspending and debt due to tempting, limited-time deals. In fact, a Lending Tree survey conducted in December 2024 showed that 36% of Americans take on holiday-related debt, with those who do borrowing around $1,181 on average, with many paying high interest rates and regretting their spending.

When surveyed about their holiday debt payoff timeline, many Americans have varied answers, with some citing that they may need months to pay them off. For example, over 20% answered making minimum payments, while 21% answered 5 or more months, 17% tied at 2 and 3 months, and 14% stated 1 month.

Common pitfalls include overspending on gifts, waiting until the last minute to shop, failing to set and stick to a budget, loading up credit cards, and overspending on travel, food, or holiday parties.

Some additional financial missteps people often make before the New Year include:

• Skipping a budget altogether: When there’s no clear spending plan, it’s easy to overspend on gifts, travel, or celebrations, and end up swiping credit cards with little thought.
• Buying at the last minute: Last-minute shopping often leads to poor choices like overspending, grabbing inflated deals, or buying things someone doesn’t need. A survey conducted by MyBankTracker, named “shopping at the last minute” as one of the top holiday money mistakes.
• Relying on credit cards or “buy now, pay later”: Charging gifts and travel to credit cards is convenient until high interest rates occur. These high rates and deferred payment plans can turn cheerful spending into stressful debt.
• Overspending on gifts to impress family or satisfy guilt: The pressure to give expensive gifts (to children, friends, or loved ones) can drive people far beyond their means, leaving them to regret their decisions.

Accessing your payment activity through the Member’s Portal encourages you to stay proactive wherever you are, so you can pay off your monthly payments sooner.