As people gear up for the holidays this year, a study by CardRates.com found that 1 in 4 Americans are still paying off last year’s holiday credit card debt.
Key Takeaways
- Southern households are hit hardest, with 31% still carrying 2024 holiday credit card debt, the highest rate in the country.
- Younger adults are struggling most: Both Gen Z and millennials report a 33% carryover rate, compared with just 11% of boomers.
- High incomes don’t guarantee a clean slate, as roughly 1 in 4 (25%) six-figure earners have yet to pay off their 2024 holiday debt.
Read the full story here: https://www.cardrates.com/studies/survey-holiday-credit-card-debt/
The fact that many still have credit card balances from last year may be why 70% of Americans would skip holiday travel this year to avoid going into credit card debt
New research found a striking shift as families finalize plans for holiday travel. Key takeaways:
- Millennials are the only generation still willing to go into credit card debt for travel to see family over the holidays. (34%)
- Moms are more debt-averse than dads (72% vs. 67%).
- Western families are most likely to stay home (74%).
Full Report: https://www.cardrates.com/studies/2025-holiday-travel-study/
Millennials Most Willing to Go into Debt for Holiday Travel
The findings reveal generational variances in planned holiday spending. Often labeled the “experience-first” generation, millennials were the top proponents for holiday travel spending this upcoming season.
Despite the possibility of increased credit card debt, millennials were the most willing to shoulder holiday travel costs, with 34% saying they would prioritize trips over staying home to avoid debt. While millennials were the outliers, the other generations held more steady with their responses:
- Gen Z: 28%
- Gen X: 27%
- Boomers: 27%
Though student loan debt and higher living costs hang over their finances, the millennial mindset may be driving them to choose memory-making over financial caution when compared with other generations.
Yet, we can’t ignore how life stage may be influencing millennials’ decision-making. Many millennials are balancing taking care of both young children and aging parents, which may explain their determination to travel despite financial strain.
“Millennials, who are between the ages of 29 and 44, are in a key demographic who both want and need to spend time with family,” said Bobbi Rebell, CFP® and Consumer Finance Expert at CardRates.com. “These are generally the life stages where they are getting married and having kids. At the same time, they are focused on their careers, which also demand a lot of attention.”
Rebell adds, “At this life stage, there’s also a new appreciation for creating priceless multigenerational memories and for the guidance of the older generation. Spending time with parents not only strengthens family bonds but also allows grandparents to connect with grandchildren, giving parents some much-needed adult time away from the day-to-day.”
Moms More Likely Than Dads to Cancel Holiday Travel Over Debt Fears
Holiday travel has always been about more than logistics for parents; It’s about keeping traditions alive while staying on budget. But this year, the season may bring a delicate balancing act between family and finances.
The survey also found a gender divide: 72% of moms said they would cancel holiday travel to avoid debt, compared with 67% of dads. The results suggest mothers are more likely to take the budget-conscious approach to holiday planning, reflecting the financial decision-making roles women often hold in households.
The study might hint at a broader story: Parents may be up against a greater challenge, and that’s finding a way to balance holiday cheer with financial constraints going into this season.
Western Families Lead Nation in Skipping Holiday Trips
Holiday vacations may not have the price tag of yesteryear, but their costs aren’t sitting at cheaper, pre-pandemic levels, either. And where you live could have more say in the matter than you think.
The study found key regional differences among responses for holiday travel budgeting, with splits across all four regions. Interestingly enough, families from the West Coast reported the least willingness to spend on holiday trips than those from other regions.
When asked whether they would skip holiday visits to see family to avoid debt, this is how respondents from each region answered:
- West: 74% would cancel to avoid debt
- Midwest: 72% would cancel to avoid debt
- South: 69% would cancel to avoid debt
- Northeast: 67% would cancel to avoid debt
While the West was most likely to say they would skip holiday travel this year, respondents from the Northeast region showed the most willingness to travel. The divide seems rooted in regional realities: Cost of living, travel distance, and cultural priorities all shape how families approach holiday trips.
In the West, longer travel distances paired with higher living costs make holiday trips more expensive and less appealing. In contrast, the Northeast’s dense metro areas often mean shorter travel, more transportation options, and comparatively lower costs, encouraging more families to make the trip.
Meanwhile, the South and Midwest landed in the middle, probably due to a mix of factors. Lower living costs, cultural emphasis on family gatherings, and shorter travel distances may all explain why people from these regions were more likely to take on debt than those in the West.
While American families are diverse in their financial dynamics, it seems many households are struggling to balance holiday festivities with current financial constraints this season.
Methodology
This survey was conducted in late summer 2025 among 1,000 U.S. adults via an online panel. The sample is unweighted but includes a broad cross-section of respondents by age, gender, household income, and race/ethnicity.
All responses were single-selection, and each question received 1,000 completes. The margin of error is approximately ±3.1% at a 95% confidence level. Crosstabs by demographic group are available upon request.
