Many Americans are starting 2025 with holiday debt, as 36% of consumers took on balances averaging over $1,100, according to LendingTree. LendingTree's Matt Schulz attributes the trend to high inflation and a desire to spread joy after a difficult year. Less than half anticipated that they would incur holiday debt highlighting ongoing financial challenges for many. Parents of young children, millennials, and middle-income earners were the groups most likely to incur holiday debt this season, according to LendingTree. Experts suggest strategies like 0% balance transfer cards or debt consolidation loans to manage these balances.