Holiday sales are projected to exceed $1 trillion in 2025, according to a recent study by WalletHub.
At the same time, the average household carries $10,227 in credit card debt, up 2.3% from the year before, the data showed, while adding holiday shopping on top of the debt can quickly increase the financial strain, especially if balances roll into the new year.
“Depending on the city, an American’s holiday budget this year can range anywhere from just over $200 to more than $4,000, taking into account residents’ income, their existing debt obligations and the cost of living,” said WalletHub Analyst Chip Lugo.
“Regardless of how well-off you are this season, it’s important to stick to a budget that fits your financial profile so you don’t rack up unsustainable debt and end up in a bad position after the holidays,” he added. “There are plenty of ways to enjoy the holidays and show you care without spending much money, like hosting potlucks or giving handmade gifts.”
Meanwhile, typical insurance plans like homeowners or rental coverage may not fully protect high-ticket items this holiday season, according to SeibertKeck Insurance Partners.
Valuable gifts like electronics, jewelry, fine art or collectibles require a specialized insurance or personal articles policy to secure full coverage, often with fewer restrictions and lower deductibles.
This holiday season, retail sales are predicted to fall somewhere between $1.61 trillion and $1.62 trillion from November 2025 to January 2026, according to Deloitte, with E-commerce expected to grow between 7% and 9% year-over-year during the same time.
“We anticipate disposable personal income (DPI), a key driver of retail sales, to grow between 3.1% to 5.4% this holiday season,” said Akrur Barua, economist, Deloitte Insights.
“Steady growth in income can help offset some economic uncertainty, including any labor market weakness and the burden of high credit card and student debt on consumer spending,” he added. “While elevated inflation will likely weigh on the volume of retail sales growth, it will nevertheless be a tailwind for the dollar value spent on retail purchases in the holiday season.”
The slideshow above illustrates top U.S. cities for spending this holiday season as selected by WalletHub.
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