1 in 4 people say they’ll go into debt for the holidays. Is social media to blame?

Americans are used to being bombarded with holiday advertising in shopping malls and TV commercials. But now, ads have infiltrated our evening scroll. Companies and influencers tell us to buy this gift or that decoration to impress our friends, get a great deal or have the best-decorated yard on the block.

More than 1 in 4 holiday shoppers (27%) say they plan to go into debt this season by carrying a credit card balance or using a buy now, pay later service, according to Bankrate’s 2024 Early Holiday Shopping Survey.

And Bankrate’s Impulse Shopping Survey shows that more than half of Americans (54%) made an impulse purchase last holiday season. Nearly 1 in 4 of them (24%) were influenced by social media.

Additionally, Chime reports that Americans spend an average of three hours daily browsing products on social media and spent an average of $168 on social media purchases in the last six months. Facebook Marketplace and TikTok Shop are popular for deliberate purchases, while Facebook and Instagram are for casual browsing.

“With peak shopping times like Black Friday and Cyber Monday approaching, both browsing time and spending are likely to rise as consumers shop for seasonal upgrades (i.e., clothes, home decor, etc.) and holiday gifting,” says Janelle Sallenave, Chime’s chief spending officer.

When it comes to social media affecting our holiday spending, there are a few culprits.

Advertising

If it seems like you’re seeing more ads than ever before, you’re probably right.

Statista reports that around 3 in 10 U.S. marketers planned to spend more on holiday advertising in 2023 than the year before. And by the end of 2023, online advertising revenue during the holiday season had reached $64.5 billion. The ramp up in dollars may continue into this year’s holiday season.

Not only are advertisers spending more, but so are holiday shoppers. Around 1 in 4 shoppers (24%) say they expect to spend more on things like gifts and decorations this year than they did last year, according to Bankrate’s Early Holiday Shopping Survey. Notably, more than 2 in 5 shoppers (42%) say they’ll make most of their purchases online.

And Bankrate data shows 13% of impulse shoppers were influenced by posts from brands or advertisers.

“Targeted ads strongly influence spending decisions and often lead to more unplanned purchases,” Sallenave says. “Our data shows that while 43% of people find these ads helpful, 41% also have concerns about their impact.”

How to not go into debt due to advertising

To avoid impulse buying from an ad, try the 24-hour rule — wait 24 hours before making the purchase. This gives you time to compare prices and read reviews after the initial excitement. You might realize after 24 hours that you don’t need that thing, after all.

Sallenave’s advice is to balance impulse with intention. “Before buying, take a step back to evaluate if it’s something you truly need or simply a product that’s been advertised effectively,” she says. “By staying aware of these tactics, you can shop more mindfully and avoid unnecessary impulse buys.”

Money tip: Wait a day or two before buying a product from a social media ad.

Friends and influencers

The idea behind social media is in the name — it’s a platform for socializing.

You can see what friends and connections across the world are doing on a day-to-day basis. But sometimes, other people’s lifestyles and experiences might stir up the fear of missing out.

“When a friend or favorite influencer raves about a product, it’s easy to feel the pull of FOMO, especially for trending items,” Sallenave explains. “This blend of social influence and exclusivity can often lead to impulse spending on products that might have been overlooked otherwise.”

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As a result, some people have begun overspending to keep up with the Joneses. And our “following” lists don’t just include friends. They might also include influencers, who often monetize their content by promoting products to their loyal followers. It’s another form of advertising, but it feels more personal because it’s coming from a voice you trust.

Ten percent of impulse shoppers say they were influenced by social media posts from friends, family or acquaintances, and 10% also pointed to influencers, according to Bankrate data.

How to not go into debt due to social pressure

“If you find yourself splurging on items based on influencers promoting them on their social media, consider unfollowing or muting accounts that encourage unnecessary spending,” Sallenave suggests. “This can reduce temptation and help you stick to your budget.”

You can also follow accounts that show you how to gift, wear or use what you already have. It’s all part of the “deinfluencing” movement, as some social media users speak out against over-consumption.

Money tip: Join the “deinfluencing” trend by unfollowing influencers and practicing underconsumption.

Travel

Inflation has made holiday travel more expensive for many Americans. But when we see other people posting their travels on social media — or that photo of Mom’s homemade pie — we might start browsing flight prices or mapping out that road trip, anyway.

For better or worse, people are willing to go into debt to travel over Thanksgiving and the winter holidays. More than 1 in 4 Americans who plan to travel this season (29%) plan to use debt to pay for it, according to Bankrate’s 2024 Holiday Travel Survey. They’ll either carry a credit card balance or use a buy now, pay later service, or some combination of the two.

How to not go into debt due to traveling

If heading out of town this holiday season is important to you, consider options like driving instead of flying, being flexible with your travel dates for flights or staying with someone you know to save money.

You could also begin saving for holiday travel several months in advance or tap into travel credit card rewards. Just keep in mind that credit card debt is not the gift that keeps on giving.

Money tip: Use credit card rewards, search for deals for your vacation or choose to stay at home to avoid overspending this season.

The bottom line

Shopping online isn’t the same as shopping in person, which might explain why Americans are going into debt this holiday season.

“The constant stream of targeted ads and influencer posts can quickly turn casual interest into a purchase, making online shopping both easy and impulsive — often with less time to consider each buy compared to in-store browsing,” Savellane says.

“Shopping in person offers the unique advantage of seeing, touching and even trying on items before buying, giving you confidence in your choice.”

By heading into the season with a budget, you can prepare for how much you’ll spend on things like gifts, decorations and travel. If you’re feeling pressure to overspend from ads, influencers or peers on social media, try logging out for a few days or weeks.

And if you do find yourself facing a holiday debt hangover, take steps to pay it off quickly, such as putting a balance transfer offer to use. Additionally, make sure you stay on top of any credit card bills, so your credit score doesn’t take a hit.

You can always enjoy the holidays the old-fashioned way — with loved ones in real life, buying only what you need and creating memories you’ll have forever.