​US credit card debt is still climbing heading into Christmas 2025.

The difference this year is the speed.

The build‑up is noticeably slower than it was at the same point in 2024, according to new numbers from the Federal Reserve and major credit trackers. Americans are still swiping, but more carefully, as high rates and last year’s holiday splurges hit statements all at once.​

What the Fed is seeing

The Federal Reserve’s latest G.19 report puts total revolving consumer credit, mainly credit cards — at about 1.316 trillion dollars as of October 2025, up from roughly 1.297 trillion a year earlier and sitting near record territory.

Revolving balances rose at a 4.9% annual rate in October after actually shrinking at a 3.9% annualized pace in August, a pattern that looks more like tapping the brakes than flooring it into the holidays.​

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Total consumer credit, including car loans and other non‑revolving borrowing, is growing around 2.2% annualized, so credit cards remain the most aggressive piece of household debt.

The Fed’s terms‑of‑credit data show card plans across all accounts charging about 21.4% on average, while accounts that actually incur interest are closer to 22.8%, turning everyday charges into long‑term IOUs if you only make small payments.​

How this Christmas differs from 2024

WalletHub’s Q3 2025 analysis found Americans added about 16 billion dollars in credit card debt during the third quarter. That’s a big number, but it’s roughly 27% less than the increase during Q3 2024, which means households slowed their borrowing pace heading into this year’s holiday stretch.​

On an inflation‑adjusted basis, total card debt sits around 1.33 trillion dollars, still about 13% below the all‑time high, but high enough that many families are carrying balances from one holiday season straight into the next. Put simply, last year people stomped on the gas going into December; this year, more are easing off, even if they’re still driving deeper into debt.​

Why shoppers are finally tapping the brakes

Rates are doing a lot of the work.

With card APRs above 22% on interest‑bearing accounts, every 1,000 dollars you revolve can easily cost more than 200 dollars a year in interest if you only chip away at the balance. That makes a 500‑dollar holiday shopping spree feel a lot less festive once you spread it across 12 or 24 months of payments.​

Fed Chair Jerome Powell

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Stress is also building under the surface. Research from the St. Louis Fed shows a broad, continuing rise in credit card delinquencies, a warning sign that many households are already stretched before they add new holiday charges. When you’re behind on last year’s gifts, it’s harder to justify putting this year’s on the same card.​

More Federal Reserve:

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  • Fed official sends strong signal on December interest-rate cut
  • Fed’s Miran pivots on interest-rate cut push for December

Surveys from firms like TransUnion point to a split in how people are handling this. Higher‑income shoppers still plan to lean on cards but often pay in full to capture rewards, while more financially strained consumers are cutting back, delaying big purchases, or hitting tighter credit limits.

That combination creates the “slower growth” pattern the Fed is capturing: people who can afford it are avoiding interest, while people who can’t are being forced to slow their borrowing anyway.​

The debt trend you’re carrying into 2026

This isn’t just about this month.

TransUnion’s 2026 Consumer Credit Forecast projects card balances rising about 2.3% next year to around 1.18 trillion dollars, the smallest annual increase since 2013, not counting the pandemic year when balances actually fell. The firm expects serious delinquencies to edge higher but stay relatively stable, suggesting both consumers and lenders are being more cautious after several years of rapid growth.​

Fed data show non‑revolving credit like auto and student loans growing only modestly, so cards remain the main squeeze point in most budgets. A cooler build‑up in card balances could mean a slightly softer holiday season for retailers but a better starting line for families trying to regain control of their finances in 2026.​

How to use this shift to your advantage

The national trends matter, but your own statement is the scoreboard that counts.

If you’re already carrying a balance, treat this holiday season as a chance to stop digging. Even trimming a few hundred dollars off what you planned to put on your card can save meaningful interest at a 22% APR and give you room to start paying down what you owe instead of just treading water. Paying more than the minimum, even 25 or 50 dollars more, can shave months or years off your payoff timeline.​

If you’re in better shape, act like the people on the healthy side of the credit divide. Use your cards for convenience and rewards, but pay in full so you’re not financing gifts at rates that look more like payday loans than cheap credit. And if you’re considering bigger moves, like consolidating balances or opening a 0% transfer card—it can be worth talking to a qualified financial professional so your plan fits your actual income, debts, and risk tolerance.​

The big picture is simple: card debt is still rising, but slower than last year as people react to punishing interest costs and tighter room in their budgets. If you lean into that slowdown on purpose, you give yourself a better shot at starting 2026 with more control and less regret when the bills arrive.​

Related: Should you Wait for the Federal Reserve to Lower Rates before Buying a Home?

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