More than a third of U.S. consumers (37%) took on holiday debt this season, averaging $1,223—the highest level since 2022—according to a LendingTree survey, with parents of young children hit especially hard. Many borrowers are still paying off last year’s holiday bills, and most report stress and regret, as high interest rates make balances harder to manage. Rising prices and tariffs also dampened holiday cheer, prompting nearly half of Americans to give fewer gifts and many to rely on buy now, pay later options. Despite the strain, nearly half of those who went into debt expected to do so, most often using credit cards, and many anticipate it will take three months or longer to pay off what they spent.