ATLANTA, GA — Many Americans will start the new year with holiday debt.

A new LendingTree report finds that 36% of Americans took on debt this year, with an average amount of more than $1,100.

“It means that an awful lot of people are going to be going into 2025 paying off debts from 2024 that they weren’t necessarily expecting,” explained LendingTree’s Chief Credit Analyst Matt Schulz. “The truth is that $1,100 is a lot of money when you consider how tight people’s budgets are.”

The number is up from 2023, when the survey found Americans had an average holiday debt of $1,028. Schulz blames that partially on inflation.

“Even though [inflation] is not growing to the degree that it was in recent years, prices are still high,” he said. “If you just bought the same things for Christmas that you bought last year, you are going to end up spending more, chances are.”

The research found that parents of young children incurred the most holiday debt, with analysts blaming this on the pressure to buy kids precisely what they want for the holidays.

Schulz said the faster you can begin paying down any holiday debts--the better off you’ll be.