Holiday spending ‘clearly on track’ to reach record-breaking heights even as credit card debt strangles shoppers

Credit card debt in the US jumped $24 billion to a record $1.17 trillion in the third quarter of 2024 – 8.1% higher than a year ago, according to a report from the Federal Reserve Bank of New York.

Holiday shopping was overwhelmingly done online this year — providing the perfect opportunity for consumers to fork over their already heavy laden credit cards and dive further into debt.

Consumers are “clearly on track” to smash record-breaking spending levels after doling out as much as $989 billion over the last two months, a National Retail Federation report said.

Americans spent a record-breaking amount this holiday season, and now credit card debt is hiting an all-time high.

The surges were seen across all shopping sectors, with restaurant spending growth rising by 6.3%, apparel by 3.6%, jewelry by 4% and electronics by 3.7%.

A shocking 10% of the shopping for the season was done in the five days before Christmas Eve, the financial services company said.

Americans were already heavily saddled with debt before heading into the holiday season.

Gen Yers – or those born between 1981 and 1996, also known as millennials – are leaning on credit cards at record rates as they struggle to splurge on gifts amid a cost-of-living crisis.

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