Americans are preparing to open their wallets wide this holiday season, even if it means taking on debt to do so, according to new research that reveals a surprising shift from typical economic patterns.
Despite a slowing labor market that would normally lead to reduced consumer spending, shoppers are prioritizing holiday gifts regardless of the financial cost, according to Invoice Home's second annual "2025 Holiday Spending" survey.
The research shows more than one-third of consumers (37%) believe buying gifts is more important than maintaining a healthy credit card balance this season. Among millennials, 27% plan to go into credit card debt to cover holiday expenses in 2025 — a significant 21% increase from 2024.
The willingness to take on financial risk extends beyond credit cards. Many shoppers said they're willing to delay paying bills for up to two months to fund their holiday purchases.
Interestingly, one in five Americans (22%) say they're more stressed about actually finding gifts to purchase than being able to afford them, suggesting supply chain concerns may be competing with financial worries.
To manage rising costs, 25% of shoppers plan to use buy now, pay later services. However, if prices continue climbing, 30% of Gen Z consumers say they'll skip gift-giving altogether.
"This data shows that consumers aren't shifting away from spending but being strategic in how they spend and in how they'll afford the season," said Petr Marek, co-founder and CEO at Invoice Home.
Marek said businesses should focus on providing excellent customer experiences and consider offering financing options or suggesting alternative products to help customers navigate the challenging economic environment.
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