Published: Jan. 21, 2026 at 3:11 AM IST
HARTFORD, Conn. (WFSB) – If you’re still trying to pay off your holiday gifts, you’re not alone. A study by the financial marketplace Credible surveyed one thousand people and found a quarter of Americans took on debt during the holiday season.
The study found median holiday spending was $500 in 2025, and 31% of people said they put holiday spending on credit cards they were already struggling to pay off.
Mike Chadwick is the founder of Fiscal Wisdom Wealth Management in Canton.
“I think people today, they put most of their purchases on plastic. I think it’s just a question of you know, do they pay the bill off in full or are they kind of paying it off over time? That’s the real question,” said Chadwick.
Chadwick says it’s important to pay more than the minimum payment on your credit cards each month.
Because if you don’t, “It’s super bad. You’ll carry it for a whole working career. You’ll literally carry forever because the minimum payment doesn’t get you anywhere. You’re only paying the interest. You’re not making any debt in the principle,” said Chadwick.
Chadwick’s advice is to pay off the credit card with the highest interest rate first, and also start making a plan now for how to avoid overspending again next year.
“A lot of this is a value system. Do you want to comfortably spend money you do not have or do you only want to spend money that you have?” said Chadwick.
The Credible study found 45% of people with holiday debt plan to use their 2025 tax refund to pay it off, and 34% say they plan to take on a side job.
Copyright 2026 WFSB. All rights reserved.