INDIANA — Holiday shopping may be over, but for many Americans, the bills are just beginning to arrive. New data shows consumers spent more this season and took on more debt in the process.
For some Hoosiers, the start of the new year is a time to reflect on how much they spent during the holidays.
“My Holiday spending this year was certainly less than it was last year,” said Carole Sendmeyer.
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Sendmeyer said she was more cautious this holiday season because of concerns with the economy, though that hasn’t always been the case in years past.
“Occasionally, yes, it’s very easy to spoil your grandchildren,” she said.
She is far from alone. According to a study from LendingTree, more than a third of Americans racked up holiday debt, averaging between $1,200 and over $1,300.
“I expect people to get in debt every holiday season. It tends to be an annual ritual for a lot of people,” said Bruce Maginn, a longtime financial advisor and partner at Solomon Financial Group, which helps people budget their money.
Maginn said the key after the holidays is figuring out how to bounce back financially. He recommends starting by identifying the most burdensome debt.
“If you have two debts that you owe $5000 on, and one requires $500 a month and the other one requires $150 a month. We want to marshal all of our excess dollars, all our resources to get rid of that $500 monthly payment as quickly as possible,” Maginn said.
He also suggests restructuring debt when possible.
“You can refinance your debt to better terms and maybe extend it out. Get the lower interest rate, and you'll still save a few to several $100 that way,” Maginn said.
Another step, he said, is taking a closer look at monthly expenses and cutting unnecessary costs.
Subscription-tracking apps can help consumers identify where their money is going.
“You can track your spending and say, 'Oh, I don't really need this, or I don't use this..' Skyrocket, different apps like that will do this for you, and it probably save $200 to $300 more dollars a month,” he said.
Maginn also cautioned against adding new debt while trying to recover from holiday spending.
Resisting the urge to spend, he added, can make a significant difference.
“You're tempted to say, 'I deserve this,' but 'no' can be a very strong, powerful word, especially in your financial life because you just have to do it for a short time and everything can turn around financially,” Maginn said.
Despite concerns over debt, overall holiday spending increased. Data shows holiday sales from Thanksgiving through Christmas Eve climbed 3.9% compared to 2024.
