The Alarming Amount Of People Still Paying For Last Year's Christmas Presents

With temperatures dropping, it's clear that Christmas is right around the corner. While many are setting money aside to fund gifts for friends and loved ones, a good number of individuals are still paying off last year's Christmas haul. Some are even still paying for the gifts of several Christmases past.

Americans in 2023 spent an average of $975 on holiday-related gifts, with many swiping their credit cards for the purchase. According to NerdWallet's 2025 Holiday Spending report, 31% of Christmas shoppers who used a credit card during the 2024 holiday season are still paying off last year's gifts. Additionally, 10% of shoppers reported that they are still in debt from holiday shopping from several years ago. And just as concerning is that 15% of 2025 shoppers find it likely that they will overspend on Christmas gifts this year, as they anticipate tariffs making items more expensive.

Americans overspending during the holidays is nothing new. In fact, according to Yahoo Finance, the first three months of the year have historically been the busiest for credit counselors as they're flooded with calls from people needing help paying down their debt. While inflation and tariffs certainly play a role in how much we spend during the holidays, a lot of it also comes down to emotional spending.

Emotional spending is described as the act of buying goods based on an emotional state rather than out of need, and it's a common way people deal with joy, stress, loneliness, and guilt. During the holidays, these feelings can easily be heightened by all the festivities and family traditions. According to Goldenwest Credit Union, heightened emotional states during the holidays can lead to individuals purchasing lavish gifts out of peer pressure or spending past their budgets due to stress.

While overspending may seem inevitable during the holidays, it doesn't have to be. By creating an easy-to-follow budget and practicing intentional shopping habits, you can enjoy the holidays without the lingering stress of credit card debt. The good thing is that Christmas happens at the same time every year, which allows you to create a spending limit, which experts recommend be no more than 1.5% of your annual income. Having a number in mind, use the remainder of the year to put money aside into a sinking fund to hit that goal and purchase gifts without adding to your debt.

Along with sticking to a budget, being an intentional shopper can help you make the most of the money you have to spend during the holidays. David Delisle, author of "The Golden Quest: Your Journey to a Rich Life," recommends people ask themselves whether a purchase is "awesome stuff," meaning, does it truly bring value and joy to the receiver. This short exercise forces shoppers to slow down and make mindful purchasing decisions rather than buying random gifts to place under a tree. By combining budgeting with mindfulness, you can avoid bringing financial stress into the new year.