More than a third of Americans haven’t finished paying for last Christmas, and the 2026 holiday season is already here. A new survey of 600 U.S. adults by The College Investor found that 38% are still paying off something they bought last holiday season.

The findings add to The College Investor’s research on how Americans handle money, checking back in on our 2022 survey on holiday stress.

Holiday debt from one season is now running into the next one for millions of households. For families trying to break that cycle, the fix starts with a holiday budget built before you shop, not after the bills arrive in January.

How Many Americans Are Still Paying Off Last Year’s Holiday Gifts?

38% of Americans are still paying off something they bought last holiday season, according to The College Investor’s 2026 survey.

17% are paying it off on a credit card and 10% on a BNPL plan. Another 11% are paying off both, which means 28% of adults still carry holiday purchases on a credit card and 21% still owe a BNPL plan.

Anyone in that group should pick the fastest way to pay down an old debt before adding new charges.

Younger Adults And Parents Carry The Most Holiday Debt

Adults ages 18 to 29 are the most likely to still owe on last year’s gifts at 44%, and 29% of them are still paying a BNPL plan. Parents with children under 18 come in at 43%.

Adults 60 and older are far less likely to carry it, at 21%. Younger households also tend to have less financial cushion, as our data on the average net worth of Gen Z by age shows.

Holiday Debt Shows Up At Every Income Level

Leftover holiday debt shows up at roughly the same rate across income levels. 41% of households earning $100,000 or more are still paying off last year, compared with 38% of households earning under $50,000. Those groups are the same within the survey’s margin of error, and our data on average net worth by age shows a big income doesn’t always mean extra savings.

The difference is the type of debt. Higher earners lean on credit cards (38%), while lower earners are more likely to use BNPL (25% vs. 14%).

Are Shoppers Using BNPL Again This Year?

Yes, 21% of Americans plan to use BNPL for holiday gifts in 2026. More than half of those shoppers (54%) are still paying off something from last holiday season.

Among people still paying off a BNPL plan from last year, 40% plan to use one again this year.

Parents are more likely to use BNPL this year, at 28% compared with 18% of adults without kids under 18 at home.

Pay-in-four plans split one purchase into smaller payments, but several plans running at once can crowd out regular bills in January and February. A small emergency fund set aside before the holidays keeps a missed installment from turning into a late fee.

How Do Americans Plan To Pay For Holiday Gifts In 2026?

57% of Americans plan to pay for gifts with cash or side hustle earnings, while 41% plan to use credit cards and 34% plan to use debit cards.

Only 25% plan to tap savings. Respondents could pick more than one method, so the totals add up to more than 100% – which makes sense because a lot of people will likely use multiple methods.

Credit cards are still the second most common plan, even for people who haven’t paid off last year. Among Americans still paying off last holiday season, 49% plan to use credit cards for gifts again.

5% plan to take out personal loans for gifts.

Anyone planning to charge gifts should compare that interest cost against what the same money earns in a high-yield savings account.

How Stressed Are Americans About Holiday Spending Compared With 2022?

Holiday money stress has eased since 2022, but most Americans still feel it.

61% say the holiday season has them stressed about how they will pay for gifts, down from 70% in The College Investor’s 2022 survey.

79% say rising inflation has them stressed about money, down from 86% in 2022.

The stress isn’t spread evenly. 71% of people still paying off last year’s gifts are stressed about this year, compared with 55% of people who owe nothing from last year.

Parents of children under 18 report 70% gift stress, compared with 57% of adults without kids under 18 at home.

One lower-pressure gift is a contribution to a child’s college fund, and our breakdown of how much you should have in a 529 plan by age can help set the amount.

Are Americans Spending Less On Gifts This Year?

More Americans are cutting back than spending more. 27% plan to spend less on gifts than last holiday season, while 17% plan to spend more. Half (52%) plan to spend about the same, and 4% don’t buy holiday gifts.

Spending the same amount as last year still costs more when prices are higher, which is why a spending plan that starts with your real numbers matters more than a target from last year.

Lower-income households are cutting back the most. One-third (33%) of households earning under $50,000 plan to spend less, compared with 16% of households earning $100,000 or more.

Families who want more room in the budget without cutting gifts can look at ways to make an extra $100 per month through the end of the year.

What Is Causing Americans The Most Money Stress Right Now?

Groceries and everyday prices are the biggest source of money stress for 47% of Americans. Housing costs come in second at 19%, and debt payments, including student loans, are third at 11%.

Only 11% say they aren’t stressed about money at all. Borrowers whose student loan payment is the pressure point can check their numbers with The College Investor’s student loan calculator.

Where the stress hits shifts with income. Households earning $50,000 to $99,999 are the most worried about groceries, at 55%. Households earning $100,000 or more are less focused on groceries (32%) and more focused on debt payments (17%) and health care costs (13%).

Higher earners carrying a big monthly student loan bill can see whether the Repayment Assistance Plan (RAP) calculator shows a lower payment.

How To Avoid Carrying Holiday Debt Into 2027

The key takeaway for families that are looking to get ahead financially is they need to make sure they’re paying off their existing balances before taking on new debt and reassess what the value of these gifts should be.

Our take on the data comes down to four steps, starting with a holiday spending plan that covers January bills too.

1. Pay Off Last Year’s Balance First

A $1,000 holiday balance on a card charging 24% APR takes 26 months to pay off at $50 per month and costs about $290 in interest. At $100 per month, it’s gone in 12 months with about $127 in interest. At $200 per month, it’s paid off in six months for about $65. If you have more than one balance, the debt avalanche method targets the highest interest rate first.

2. Set A Cash Number Before You Shop

Decide the total you’ll spend on gifts, then divide it by the number of people on your list. Track it in one place, whether that’s a spreadsheet or a budgeting app like Copilot Money. A fixed number keeps “about the same as last year” from quietly growing with higher prices.

3. Treat Buy Now, Pay Later Like A Bill

A pay-in-four plan is a set of four bills, not a discount. Before checking out, add each installment date to your calendar and confirm the money will be in your checking account on that date. If you already have a plan running, finish it before starting another, and keep a buffer in a savings account that earns a competitive rate.

4. Earn The Gift Money Before You Spend It

57% of Americans plan to use cash or side hustle earnings for gifts, and that’s the safest route. A few weeks of extra income can cover a gift list without leaving a balance behind. Our list of side hustle ideas to make money fast includes options that pay out before Christmas.

FAQs

What Percentage Of Americans Go Into Debt For The Holidays?

In The College Investor’s November 2026 survey, 38% of Americans said they are still paying off something they bought last holiday season. Twenty-eight percent are still carrying it on a credit card and 21% are still paying a buy now, pay later plan. Paying the highest-rate balance first with the debt avalanche method cuts the interest cost.

Are Fewer People Stressed About Holiday Gifts Than In 2022?

Yes. Sixty-one percent of Americans say they are stressed about paying for holiday gifts in 2026, down from 70% in The College Investor’s 2022 survey. Inflation stress also fell, from 86% to 79%, and the 2022 results are on The College Investor’s research page.

How Many People Plan To Use Buy Now, Pay Later For Holiday Gifts?

Twenty-one percent of Americans plan to use buy now, pay later for gifts in 2026. Parents of children under 18 are more likely to use it, at 28%. Each installment should go into a monthly budget before you check out.

What Is The Biggest Source Of Money Stress For Americans Right Now?

Groceries and everyday prices are the top source of money stress, named by 47% of Americans. Housing costs are second at 19%, followed by debt payments, including student loans, at 11%. Tracking grocery spending in one of the best budgeting apps shows where the money goes each month.