Inflation is making it harder for Americans to get ahead, forcing many consumers to rely on credit cards to cover holiday expenses this year. A new survey from Debt.com finds that Americans are not being put off by higher prices, and are instead using credit cards to carry them through.

Debt.com polled 1,000 U.S. adults to see how they planned on covering their holiday expenses. More than 60 percent of respondents said they would be spending more due to inflation. This is up from 54 percent last year. Meanwhile, three out of five respondents said they would be using their credit cards to help cover holiday shopping costs.

"It's almost an American tradition to go into debt for the holidays. Leading up to the holidays, the fear of high prices and 'FOMO' (the fear of missing out) runs Dvorkin, CPA and Debt.com chairman.

Just over two thirds of respondents said they had already begun their holiday shopping and one in three began in November. Additionally, 15 percent said they began their holiday shopping in the summer when inflation dropped slightly.

Credit card use grew by over 16 percent, with Americans now owing more than $1 trillion, with an average rate of 26 percent on major credit cards and 30 percent on store cards.

A report from Lending Club Corporation finds 38 percent of consumers consider themselves in poorer financial health relative to 2022, and 62 percent are very or extremely concerned about the economic outlook.

Meanwhile, 60 percent of consumers say they are living paycheck to paycheck, unchanged from a year prior, with 76 percent of consumers earning less than $50,000 annually.

"Shoppers should ask themselves if they really need to buy gifts for everyone or instead buy gifts for a small core group of family and friends," said Dvorkin.


Holiday Shopping Facts

Here are a few holiday shopping facts from Debt.com and PWC. 

● 2 in 3 Americans say they started shopping earlier this year.

● 1 in 4 started shopping earlier to avoid price markups.

● 75 percent of consumers are on the hunt for deals this holiday.

● Consumers will increase spending by 7 percent this year.

● Consumers will spend an average of $1,530 on gifts.

● 40 percent of consumers will spend more overall than they did last year.

● Female shoppers will spend 11 percent more this year than they did in 2022.

● 43 percent of consumers, who are living paycheck to paycheck and struggling to pay bills, plan to use credit cards to cover holiday expenses this year.