According to CNBC, “28% of credit card users are still paying off last year’s holiday debt.”

Yikes. Why does this happen?

People often go into debt for gifts during the holiday season for various reasons, many of which stem from societal pressures, emotional desires, and a desire to show love or appreciation in tangible ways. Let’s dive into a few reasons why some may go into debt this holiday season.

1. The pressure of consumerism.

The holiday season is often marked by intense consumerism, with advertising, social media, and even family traditions placing heavy emphasis on buying budget-busting gifts. People may feel the need to keep up with expectations, both from others and from the culture around them. This can lead to impulsive spending and taking on debt to meet these perceived demands.

The Bible encourages us to focus on contentment and not put our hope in material things or keep up with others. In 1 Timothy 6:6-10, Paul warns against the love of money, which can lead to ruin, and instead calls us to be content with what we have. “Godliness with contentment is great gain” (NIV). The emphasis is on being satisfied with what we have and avoiding the trap of consumerism that leads to unhealthy financial decisions.

2. The desire to show love and affection.

For many, gift-giving is a way to express love, gratitude, or appreciation to friends and family. And this is good. But the desire to give the "perfect" gift, especially one that is beyond the budget, can drive people to overspend. While generous gift-giving during Christmas is a good thing, it can become problematic when it leads to debt or financial strain.

3. Emotional spending or "keeping up with the Joneses.”

During the holidays, some may feel the need to spend beyond their means to keep up with family members, friends, or colleagues. They try to keep up with family members who earn more money and give more expensive gifts. The desire to maintain a particular image or to outdo others regarding extravagant gifts can lead to impulsive spending.

Scripture speaks strongly against coveting or trying to impress others with material wealth. Exodus 20:17 states, " You shall not covet your neighbor’s house…or anything that belongs to your neighbor” (NIV). This reminds us that our worth and value do not come from the things we own or the gifts we give, but from our identity in Christ. The biblical view of generosity is rooted in humility and focusing on others, not appearances or status.

4. The illusion of instant gratification.

Credit cards, easy financing options, and "buy now, pay later" services often make it tempting to give in to the desire for instant gratification. People may purchase items they can't afford, thinking they'll pay it off later. However, this mindset can lead to debt that lingers long after the holidays.

The Bible emphasizes living within our means and the dangers of taking on unnecessary debt. Proverbs 22:7 says, "The rich rule over the poor, and the borrower is slave to the lender.” This highlights the potential bondage that debt can bring. It limits us and our generosity in the future. Debt is a generosity killer.

5. Missing the meaning of Christmas.

The Christmas season celebrates the birth of Jesus Christ, the ultimate gift of God's love and salvation to the world. Yet, in a culture of materialism, the focus can shift from God’s eternal gift to man’s momentary material things. The desire to give big, expensive gifts can often overshadow the deeper, more meaningful celebration of Christmas—God is with us.

While giving gifts can express love, the Bible encourages us to be wise in our financial choices, avoiding the temptation to go into debt. Instead of spending beyond our budget, give thoughtfully and avoid debt. Shy away from credit card debt and buy now, pay later services.

Have a very merry, budget-friendly Christmas.