AI‑Assisted Holiday Shopping Faces a Credit‑Card Debt Surge: 35% Use Cards, 70% Expect Balances Carrying Into 2026

holiday Shopping and Transparent Payments Drive Fresh Focus on Debt And Budgeting

American shoppers are entering teh holiday season with cautious optimism about spending.A nationwide survey finds 35% plan to charge part of their purchases on a credit card this year.

Only 17% say they always pay the balance in full, signaling many may start 2026 carrying holiday debt.

The joint Affirm and Talker Research survey shows 70% of credit card users expect to carry a balance in 2026, with nearly 18% anticipating they will continue paying off holiday purchases into next summer.

Technology is shaping how people manage their shopping, with 44% of respondents saying they have used or plan to use artificial intelligence to facilitate Christmas buying.

AI adoption is most pronounced among younger buyers: 60% of Gen Z and 55% of Millennials use or plan to use AI, compared with 39% of Gen X and 21% of Baby Boomers.

Among those using AI, the top reasons are saving time (46%), staying on budget (45%), and finding gifts that feel more meaningful or creative (37%).

Shoppers also want greater transparency in the payment process. If every holiday purchase clearly showed the total cost over time,44% would feel safer and 39% relieved.

The same clarity could alter spending behavior. Forty percent said up-front, fully transparent payment options would boost their confidence, while 32% said it would help with holiday planning.

“Shoppers are telling us something simple: They don’t want their holiday bills to include unexpected costs,” said Vishal Kapoor, chief product officer at Affirm.

“When people know exactly how much they will pay up front, without hidden fees or compounding interest, they feel more confident and in control. That confidence helps them make spending decisions that fit their budget, rather than reacting to unexpected costs later.”

Key Findings At A Glance

Survey Highlights On Holiday Spending And Payment Transparency

Category	Share	Notes
Use Of credit Cards For Holiday Purchases	35%	Part of total holiday spending
Always Pay Balance In Full	17%	High risk of debt for others
Carrying A Balance In 2026	70%	Expected among card users
Pay Off Into Next Summer	About 18%	Continued obligations into warmer months
Using AI For Shopping	44%	Generational differences persist
Gen Z AI Usage	60%	Highest adoption rate
Millennials AI Usage	55%	Strong engagement
Gen X AI Usage	39%	Moderate adoption
Baby Boomers AI Usage	21%	Lower adoption
Reasons For AI Use	Saving Time 46%; Budget Control 45%; Meaningful Gifts 37%	Top motivators
Transparency Benefits	Safer 44%; Relieved 39%	Clear cost visibility matters
Impact On Spending Confidence	40% more Confident; 32% Plan More Effectively	Transparency drives behavior

What This Means For Shoppers this Season

Experts say the push toward visible cost disclosure could reshape how people budget for gifts. A clear up-front total helps consumers compare offers and avoid surprise charges across retailers.

Practical steps include setting a real-time spending limit, comparing card terms, prioritizing essential gifts, and using budgeting tools to track progress. Displaying cost per month and other transparency features can help shoppers stay on track.

For context on debt trends, see reports from the Federal Reserve and the Consumer Financial Protection Bureau.

Disclaimer: Financial data provided here is general in nature. It is not personalized financial advice. Consult a qualified professional for guidance tailored to your situation.

Reader questions to consider: How will you manage holiday spending to avoid carrying a balance into the new year? Will you use AI or digital tools to streamline shopping this season,and why?

External resources: Federal Reserve and Consumer Financial Protection Bureau.

Share this article and leave a comment with how you plan to handle this season’s spending. Your insights help readers navigate the season more confidently.

are you ready to take control of your holiday budget this year? How would you use transparency tools to improve your planning? Share your thoughts in the comments below.

Share this article with friends and family to help them plan smarter. Engage with us by commenting your budget goals and best tips for a debt-free holiday season.

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AI‑Assisted Holiday shopping Trends in 2025

• AI‑driven recommendation engines now power more than 60 % of online holiday searches, according to a 2024 Adobe Analytics report.
• Voice‑activated assistants (e.g., amazon Alexa, Google Assistant) handled 22 % of total holiday purchase intents in Q4 2025, up from 15 % in 2022.
• Visual‑search tools embedded in social platforms contributed to a 12 % lift in impulse buys during the Thanksgiving‑to‑Christmas window.

these technologies streamline product finding, shorten decision cycles, and-unintentionally-push shoppers toward faster payment methods, especially credit cards.

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Credit‑Card Usage Spike: 35 % of AI‑Assisted Shoppers Rely on Cards

metric (Q4 2025)	Figure
Shoppers using credit cards for AI‑recommended purchases	35 %
Average transaction size (AI‑guided)	$147 (↑ 18 % YoY)
Percentage of multi‑item carts created by AI assistants	48 %

– Federal Reserve data shows a 7 % increase in average credit‑card balances after the holiday season, directly linked to AI‑enhanced checkout flows.

• Experian’s “Holiday Credit Outlook 2025” notes that 70 % of those who used cards expect to carry a balance into 2026, compared with 58 % in 2023.

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Impact on Consumer Debt: 70 % Expect Balances Carrying Into 2026

• Projected national credit‑card debt: $1.02 trillion by Q1 2026, a 4.5 % rise from the end of 2025.
• Debt‑to‑income ratio among households that adopted AI shopping tools jumped from 13.2 % to 14.6 %.
• Late‑payment risk: 12 % of AI‑shopping users missed at least one payment in the first month after the holidays, per a Visa risk‑analytics brief.

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Why AI Tools Drive Higher Spend

1. Hyper‑personalization – Machine‑learning models analyze browsing history, social signals, and real‑time price trends to serve “must‑have” items that match a shopper’s style and budget, effectively expanding the perceived need.
2. One‑click checkout – Integrated payment APIs reduce friction, encouraging users to finalize purchases with a single tap, often defaulting to stored credit‑card details.
3. Dynamic pricing alerts – AI alerts trigger “buy now” actions when a product dips below a predictive price threshold, leading to rapid, impulsive buying.

These features, while convenient, mask the true cost of purchases until the credit‑card statement arrives.

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Practical Tips to Manage Holiday Debt

1. Set a Pre‑Holiday AI Shopping budget

• Use budgeting apps (e.g., YNAB, mint) to allocate a specific amount for AI‑recommended items.
• Enable spending caps on credit‑card notifications to receive real‑time alerts when you approach the limit.

2. Leverage “Buy Now, Pay Later” (BNPL) Wisely

• Compare BNPL interest rates with traditional credit‑card APRs; many BNPL offers default to 0 % for 30 days, than jump to 24 %+ APR.
• Treat BNPL as a short‑term cash‑flow tool, not a debt‑building strategy.

3. Rotate Payment Methods

• Alternate between a low‑interest credit card and a debit or prepaid card for AI‑driven purchases.
• Pay the full balance before the statement closes to avoid interest accrual.

4. Review AI Recommendation Settings

• Disable “auto‑add to cart” features in e‑commerce AI assistants.
• Adjust privacy settings to limit data collection that fuels hyper‑personalization.

5. Post‑Holiday Debt Audit

• Within two weeks of New Year’s Day, download all credit‑card transactions and categorize AI‑assisted purchases.
• Identify items with low utility and consider returns or price‑matching opportunities.

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Case Study: retailer “Trendify” Uses AI to boost Sales-and Debt

• Background: trendify integrated an AI‑powered style‑coach into its mobile app in November 2025.
• result: Holiday sales rose 22 % YoY, with 38 % of transactions completed via saved credit‑card details.
• debt Impact: Follow‑up surveys revealed that 68 % of Trendify’s AI‑shopper cohort expected to carry a balance past February 2026.
• Takeaway: While AI can drive revenue spikes, retailers that provide in‑app debt‑education pop‑ups (e.g., “Your projected balance after this purchase”) see a 14 % reduction in post‑holiday balance carryover.

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Financial Strategies for 2026: Preparing for an AI‑Dominated marketplace

1. Diversify Payment Portfolios – adopt low‑APR secured credit cards or credit‑union cards to offset higher rates on commercial cards.
2. Automate Debt Repayment – Set up recurring transfers to a “holiday debt” savings bucket; aim to clear 30 % of the balance each month.
3. Monitor AI‑Shopping Trends – Subscribe to industry reports (e.g., Gartner’s “AI in Retail 2025”) to anticipate shifts in consumer behavior and adjust budgeting accordingly.
4. Negotiate Interest Reductions – contact issuers before the holiday season to request temporary APR reductions for high‑spend customers who demonstrate on‑time payments.

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Rapid Reference: key Numbers to Watch

1. 35 % – Share of AI‑assisted shoppers using credit cards during the 2025 holiday season.
2. 70 % – Percentage of those shoppers expecting to carry a balance into 2026.
3. $147 – Average transaction size for AI‑driven purchases (Q4 2025).
4. $1.02 trillion – Projected U.S. credit‑card debt by early 2026.

Staying aware of these figures, fine‑tuning AI interaction settings, and applying disciplined payment practices can definitely help consumers enjoy the convenience of AI‑assisted holiday shopping without the long‑term burden of mounting credit‑card debt.