High credit card debt not deterring homeowners’ holiday shopping plans

PALO ALTO, Calif., November 24, 2025 — American homeowners are planning to spend more this holiday season even as their credit card balances reach record highs, according to a new survey from Point, a leading home equity investment platform. Nearly half of homeowners expect to boost their holiday spending compared to last year, and most say they will rely heavily on credit cards at a time when borrowing costs remain near historic highs.

Inflation and consumer-goods tariffs continue to push up prices across categories, making 2025 one of the most expensive holiday seasons in recent memory. Meanwhile, U.S. credit card debt has reached $1.23 trillion, up 5.7% year-over-year and nearly double the level of a decade ago¹.

“Homeowners are increasing their holiday spending even as the broader economy slows and credit card balances hit new records,” said Aaron Terrazas, economist for Point. “That divergence suggests households are feeling squeezed, but still pushing ahead — often by relying on high-interest debt. In this environment, home equity has become one of the few financial tools that can provide meaningful relief without adding to monthly expenses.”

Rising spending, rising balances

Point’s survey finds that 44% of homeowners expect to spend more in the holiday season in 2025, while just 17% expect to spend less. The typical homeowner plans to spend $1,000–$1,999 on gifts, travel, and seasonal activities, with most putting 25% to 50% of that total on credit cards.

Debt will carry well into 2026

More than half of homeowners (54%) report carrying more credit card debt than a year ago, and one in four say their balance is “much higher.” Nearly half expect their debt to rise again next year. Only 31% plan to pay off holiday charges within a month, meaning 69% anticipate carrying balances into 2026, where APRs near 20% can turn seasonal spending into longer-term financial strain.

Inflation is the most common driver of rising balances (cited by 52% of homeowners), but unexpected medical or auto expenses and income disruptions continue to contribute to reliance on credit cards (cited by 26% of homeowners).

An emerging financial pressure point

The survey also reveals mounting financial stress, with nearly one in four homeowners (23%) feeling “extremely overwhelmed” by their credit card debt. Notably, homeowners at both ends of the emotional spectrum – those who are most overwhelmed and those who are most financially comfortable – are planning the highest holiday spending.

Amid these pressures, more homeowners are exploring alternatives to revolving credit. The share of Point Home Equity Investment (HEI) inquiries citing credit card payoff as the primary use has increased from 13% in 2021 to 18% in 2025, reflecting a growing interest in alternative ways to manage household finances and monthly cash flow.

“Homeowners are increasingly recognizing their home equity as a stabilizing force to smooth consumer spending over the business cycle,” Terrazas added. “As credit card debt rises faster than incomes, tapping home equity strategically can help households start the new year on a more solid footing and avoid costly credit card interest.”

The full report is available here.