Consumers will go into credit card debt, use BNPL to afford holidays
Americans will prioritize gifting regardless of the impact to their wallets this holiday season.
More than one-third (37%) of consumers believe buying gifts is more important than a credit card balance this season, according to a survey by Invoice Home, a comprehensive invoicing platform and invoice template software provider. Conducted with third-party research firm Censuswide, the data also showed that 25% of U.S. consumers plan to use buy now, pay later services to navigate holiday spending this year.
The survey also revealed the reasons consumers would not shop with a retailer this holiday season, with an increase in prices overall topping the list (50%, up from 25% last year), followed by an increase in the cost to return (25%, up from 11% last year). Other turn-offs: poor experience with a shipping carrier the retailer used (23%, up from 11% last year) and poor communication from around delayed shipping (22% up from 10% last year).
Other findings from Invoice Home’s “Holiday Spending Survey” are below.
- If a brand/business isn’t offering a discount at the time of purchase during the holidays, 42% would still feel incentivized to buy if free shipping/returns was offered, along with reward/loyalty points (34%), gift with purchase (28%) and the promise of a discount code for the next order (19%).
- Nearly half (47%) of respondents anticipate spending the most on holiday purchases in 2025 with Amazon, big box retailers such as Walmart and Target (32%) and 18% with small businesses.
- Nearly one-in-five (18%) Gen Z consumers anticipate spending the most with TikTok Shop.
- If prices continue to increase due to inflation/external economic factors, 38% of Gen Z consumers and 26% of millennials will save money during the holidays by buying thrift gifts and 30% of Gen Z and 27% of millennials will opt out of gifting.
“This data shows that consumers aren’t shifting away from spending but being strategic in how they spend and in how they’ll afford the season,” said Petr Marek, co-founder and CEO at Invoice Home. “With rising costs being out of many businesses’ controls, now is the time to ensure your customer experience is flawless from the moment they begin interacting with you. Look for avenues to connect with your customer like providing financing options or suggesting alternate products to ones that aren’t available or out of their price range. Small acts like this can be the difference between a sale and moving onto your competitor.”
