Black Friday Statistics on Debt 2024: How Spending Habits Impact Consumer Debt
Barry Elad
Updated · Nov 27, 2024
Every year, Black Friday kicks off the holiday shopping season with enticing deals and doorbuster discounts. While this event is eagerly anticipated by shoppers, it also ushers in a surge in consumer spending and, inevitably, a spike in consumer debt. In 2024, the stakes are higher than ever, with trends indicating a significant shift in spending patterns, payment preferences, and borrowing habits. This article delves into the statistics shaping consumer debt on Black Friday, helping you navigate the holiday season with informed insights.
Editor’s Choice: Key Insights on Consumer Debt During Black Friday
- Consumer debt related to Black Friday reached $20 billion in 2023, marking a 15% increase from 2022.
- Over 40% of Black Friday shoppers in 2023 relied on credit cards to finance their purchases, reflecting the heavy dependence on borrowing.
- The average debt accumulated by a Black Friday shopper was $500 in 2023, with many unable to pay off the balance until mid-2024.
- Buy Now, Pay Later (BNPL) services contributed to a staggering $10 billion in Black Friday sales, highlighting their growing influence.
- Among debtors, 60% reported financial stress post-Black Friday, emphasizing the psychological toll of holiday overspending.
- 18 million Americans reported using high-interest payday loans to cover Black Friday spending in 2023.
- Black Friday-related bankruptcies saw a 7% increase year-over-year, with analysts linking the trend to escalating borrowing costs.
Black Friday Spending Trends
- In 2024, Black Friday spending is projected to exceed $90 billion, up from $85 billion in 2023.
- Online shopping accounted for 57% of Black Friday sales in 2023, showcasing a steady rise in e-commerce dominance.
- The average household budget for Black Friday shopping increased to $875 in 2023, up from $825 in 2022.
- Electronics remained the most purchased category, accounting for 45% of total sales, followed by clothing at 23%.
- Consumers aged 25 to 40 years led spending, contributing to 55% of overall sales in 2023.
- Retailers offering 0% BNPL services observed a 30% higher conversion rate during Black Friday 2023 compared to non-BNPL competitors.
- Mobile shopping surged by 20%, with smartphones driving 65% of online Black Friday traffic.
- In-store foot traffic, although declining, still recorded 122 million visits nationwide on Black Friday 2023.
- Impulse buying accounted for 22% of purchases, with many shoppers exceeding their planned budget by $200 on average.
- Discounts averaged 30% across most categories, with high-demand items like gaming consoles seeing markdowns of up to 50%.
| Metric | Value |
| Projected Black Friday spending (2024) | $90 billion |
| Black Friday spending (2023) | $85 billion |
| Percentage of online shopping (2023) | 57% |
| Average household budget (2023) | $875 |
| Electronics share of sales | 45% |
| Clothing share of sales | 23% |
| Spending by 25-40 age group | 55% |
| Mobile shopping contribution | 65% of online traffic |
| Average budget exceedance due to impulse | $200 |
| Average discount across categories | 30% |
Impact of Buy Now, Pay Later (BNPL) Services
- BNPL services accounted for 20% of Black Friday transactions in 2023, nearly doubling from 2022’s 11%.
- Over 12 million consumers used BNPL services during Black Friday 2023, a 35% increase year-over-year.
- The average transaction value for BNPL purchases was $350, with many consumers opting for plans extending up to 12 months.
- 72% of BNPL users admitted to exceeding their planned budget during Black Friday, citing the convenience of delayed payments.
- Late payment fees from BNPL plans during Black Friday totaled $150 million, a 20% jump from 2022.
- Millennials and Gen Z made up 70% of BNPL users, showcasing the generational preference for alternative credit solutions.
- Retailers promoting BNPL services experienced a 25% boost in average order value compared to those without BNPL options.
- 44% of BNPL users expressed concern about their ability to meet upcoming payments post-Black Friday.
- Apparel and electronics were the top categories purchased via BNPL, contributing to 60% of all BNPL transactions.
- Analysts predict BNPL usage during Black Friday 2024 will increase by 25%, potentially reaching $12.5 billion in sales.
| Metric | Value |
| BNPL transactions share (2023) | 20% |
| Increase in BNPL transactions from 2022 | 11% to 20% |
| Consumers using BNPL (2023) | 12 million |
| Average BNPL transaction value | $350 |
| Late payment fees total (2023) | $150 million |
| Millennials and Gen Z using BNPL | 70% |
| Concerned about meeting payments | 44% |
| BNPL growth projection (2024) | 25% |
Credit Card Usage and Debt Accumulation
- Credit cards were the primary payment method for 45% of Black Friday shoppers in 2023.
- The average credit card debt incurred during Black Friday was $600 per shopper, an increase from $540 in 2022.
- Interest rates on credit card balances reached a record high of 20.68% in 2023, amplifying debt repayment challenges.
- Consumers under 30 years old contributed to 25% of all credit card spending during Black Friday.
- 35% of shoppers failed to pay off their Black Friday balances within the first three months, leading to additional interest charges.
- Rewards credit cards played a significant role, with 60% of users aiming to maximize cashback or points during Black Friday.
- Credit card delinquencies linked to holiday spending rose by 8% in Q1 2024, correlating with higher holiday debt burdens.
- Among Black Friday credit card users, 28% admitted to regretting purchases, citing unplanned overspending.
- Shoppers using credit cards spent 18% more on average than those using debit or cash.
- Analysts estimate total credit card debt from Black Friday 2024 will exceed $25 billion, up from $22 billion in 2023.
Demographic Variations in Holiday Spending and Debt
- Millennials accounted for 55% of Black Friday spending in 2023, while Baby Boomers contributed only 18%.
- Households earning under $50,000 annually were responsible for 30% of Black Friday-related debt, highlighting financial strain among lower-income groups.
- Urban shoppers spent 25% more on average during Black Friday compared to their rural counterparts.
- Single individuals reported higher holiday debt, averaging $700 per person, compared to $480 among married couples.
- Black Friday shopping participation was highest among Hispanic households (82%), followed by African American households at 75%.
- Consumers in California, Texas, and Florida led Black Friday spending, collectively contributing to 40% of national sales.
- College-educated consumers were more likely to use BNPL services, with 65% adoption rates compared to 40% among non-degree holders.
- Shoppers aged 18–24 years reported the highest likelihood of using short-term loans for Black Friday purchases.
- Women have an average spend of $950, compared to $870 for men.
Financial Management Strategies During the Holiday Season
- 67% of shoppers in 2023 planned their Black Friday budgets, a 10% increase from 2022, showing greater financial awareness.
- Prepaid debit card usage for Black Friday spending grew by 18%, helping shoppers avoid overspending.
- 45% of consumers set spending limits on their credit cards during Black Friday to manage post-holiday debt.
- Coupon and cashback apps saved the average shopper $120 on Black Friday purchases, a significant rise from $95 in 2022.
- Budgeting apps like Mint and YNAB reported a 30% spike in downloads leading up to Black Friday.
- Families with children were 20% more likely to start holiday shopping early, reducing last-minute financial pressure.
- 30% of shoppers opted for used or refurbished products in 2023, aligning with both budgetary and environmental goals.
- Retailers offering exclusive discounts to loyalty members reported a 22% increase in repeat customers, promoting smarter spending.
- Consumers who created item-specific shopping lists spent 25% less compared to those without a list.
- Emergency savings withdrawals during Black Friday declined by 5%, a sign of improved financial planning among shoppers.
| Strategy | Metric | Value |
| Shoppers planning budgets | Percentage (2023) | 67% |
| Prepaid debit card usage increase | Percentage | 18% |
| Coupon/cashback savings per shopper | Average | $120 |
| Budgeting app downloads spike | Percentage increase | 30% |
| Families starting shopping early | Likelihood increase | 20% |
| Used/refurbished product buyers | Percentage | 30% |
| Spending reduction with shopping lists | Average percentage | 25% |
Recent Developments
- Black Friday 2023 marked the highest online sales day in US history, with e-commerce generating $11.5 billion in revenue.
- Retailers using AI-driven personalized marketing experienced a 40% higher conversion rate during Black Friday.
- Virtual reality (VR) shopping grew in popularity, with 3 million consumers using VR platforms to explore deals.
- Data breaches increased by 15% during the holiday season, prompting greater investment in cybersecurity by retailers.
- Carbon-neutral Black Friday initiatives by brands like Patagonia inspired 15% of consumers to choose sustainable options.
- Digital wallets like PayPal and Apple Pay accounted for 25% of Black Friday payments, up from 18% in 2022.
- Shipping delays affected 20% of online Black Friday orders, pushing some consumers back to brick-and-mortar stores in 2023.
- Retail bankruptcies spiked in early 2024, as smaller businesses struggled to compete with e-commerce giants during Black Friday.
- Analysts predict Black Friday 2024 will focus heavily on experiential shopping, integrating AR and immersive digital storefronts.
- The rise of community-based gift-buying initiatives has driven 10% of shoppers toward local artisans and small businesses.
Conclusion
As Black Friday 2024 approaches, consumers are becoming more savvy about their spending habits, leveraging technology and financial tools to reduce the impact of holiday debt. However, the growing reliance on credit cards and BNPL services signals a need for caution. While innovative shopping methods like AI personalization and VR experiences are reshaping the landscape, the fundamentals of financial planning remain critical. Striking a balance between enjoying holiday sales and maintaining financial stability will define the shopping season for millions.
Barry Elad
Barry Elad is a dedicated tech and finance enthusiast, passionate about making technology and fintech concepts accessible to everyone. He specializes in collecting key statistics and breaking down complex information, focusing on the benefits that software and financial tools bring to everyday life. Figuring out how software works and sharing its value with users is his favorite pastime. When he's not analyzing apps or programs, Barry enjoys creating healthy recipes, practicing yoga, meditating, and spending time in nature with his child. His mission is to simplify finance and tech insights to help people make informed decisions.
