Predicted $55 Billion Post-Holiday Debt as Americans Turn to BNPL Strategies

Post-Holiday Spending Trends: A Landscape of Debt and Caution

As the holiday season approaches, new insights from Omnisend highlight an upcoming cautious spending trend among American consumers. A recent survey conducted by Omnisend, which involved 1,200 U.S. adults, suggests that about 47% of Americans expect to face post-holiday debt, predicting an astonishing collective debt amount of $55 billion. This constitutes an average debt of roughly $213 per adult.

Shrinking Budgets Amid Rising Costs

The survey reveals a significant shift towards spending less this holiday season, with approximately 78% of respondents indicating that they plan to reduce their holiday budgets compared to previous years. In particular, 60% of those surveyed aim to keep their total holiday expenditures below $500. One of the primary reasons driving this cautious approach is inflation, with 45% of participants citing rising prices as a key factor in their budget constraints. Additional reasons include tariffs and supply chain issues, which continue to distort pricing dynamics for consumers.

According to Marty Bauer, an Ecommerce Expert at Omnisend, this trend reflects the broader economic landscape. "Households are tightening their belts in 2025. Inflation has seen a resurgence, and new tariffs have further inflated costs. Although borrowing costs are expected to decrease, they remain high, making credit card usage less appealing. Consequently, nearly half of our respondents are resorting to buy now, pay later (BNPL) options to manage their gift expenses while minimizing interest payments," Bauer notes.

The Surge of Buy Now, Pay Later Options

Interestingly, 45% of consumers are contemplating using BNPL services for their gifts. The growing popularity of this payment method underscores a significant shift in consumer behavior. Among those considering BNPL, 18% have committed to using it, while 27% remain undecided. This move reflects a necessity for many shoppers who wish to distribute their expenses over time without accruing substantial interest.

Bauer further elaborates that BNPL has transitioned from a niche market to a mainstream payment option, observing that last year saw record-high installment spending online during the holiday season. This holiday season, he emphasizes, retailers who prioritize price transparency, provide clear explanations for BNPL offerings, and feature budget-friendly gift selections will likely emerge as the frontrunners.

Understanding the Customer's Perspective

The survey results reveal a significant tariff impact as well, with 61% of Americans stating that tariffs have directly influenced their holiday shopping decisions. Among this group, one-third reported experiencing price increases on certain products, while others shift their focus towards shopping from domestic sources, avoiding platforms reliant on Chinese imports like Temu and Shein.

"When traditional low-cost goods see price hikes, families respond by reducing gift lists or opting for smaller items. These trends echo larger global shifts, including stricter regulations on Chinese imports and the reduction of duty-free allowances, which diminish the appeal of ultra-cheap deals," says Bauer.

Overall, these findings from the Omnisend survey reflect a significant cultural shift in American consumer behavior, with a strong emphasis on financial prudence. As the 2025 holiday season looms closer, it is clear that shoppers are adapting their strategies to navigate a landscape marked by economic uncertainty sincerely. The emerging trends will not only reshape how consumers approach holiday spending but might also influence retailers' marketing tactics for years to come.

A Call for Retail Adaptation

In this rapidly changing environment, retailers must recognize these shifts and adapt accordingly. Offering affordable options, transparent pricing, and convenient payment methods such as BNPL may help them meet the evolving needs of cautious shoppers. As we draw closer to the festive period, it will be critical to observe how both consumers and retailers adapt to this new economic reality.