From gifts to bills: Holiday debt sets in INDIANAPOLIS (WISH) — After weeks of gift-buying, travel, and celebrations, the credit card bills are just beginning to arrive for some families. Shoppers are finding out that putting Christmas on a credit card could add up to some pretty serious debt. Colton Cooley, The senior vice president of consumer lending sales at First Merchants Bank, told News 8 that spending for the 2025 holiday season was up this year compared to last year by about 4-6%, which would be between $1.1 and $1.3 trillion spent by shoppers. When shoppers don’t have that money on hand, they put it on their credit cards. 60% of shoppers use their credit cards to finance holiday purchases. “About 46% of card holders have a balance they don’t pay off in full each month,” Cooley said. “That means high-interest charges added onto those balances.” On top of the credit card bills adding up, Cooley tells me that half of parents don’t save up year-round for Christmas. “Short-term holiday spending turns into long-term debt,” Cooley said. “If a family only makes minimum payments, those interest charges can really stretch the repayment for months, even years. Turning a $1,012 balance into thousands in interest over time.” Cooley told News 8 that 1 in 3 shoppers still hadn’t paid off their last year’s balances late into 2025, but he says not to worry. There are a few things you can do to get back on track for the new year. “If you notice you have credit cards that are close to the limit, maybe starting to get some declined transactions, start with a clear inventory of your holiday debt and lay out your balances, interest rates, your due dates,” Cooley said. “Create a realistic repayment plan.” Cooley said in the banking industry, experts suggest approaching it with two different strategies. The “avalanche method,” which is paying off the higher interest balances first, and the “snowball method,” which is taking those small wins and paying off the smallest payments first. Cooley told News 8 that the best thing you can do if you feel lost is seek financial help early. He said do not wait until it is too late. ...read more read less