For some shoppers, the upcoming holiday season may lead to significant credit card debt. Meanwhile, some people are still paying off debt from last year’s gift buying.

In fact, 28% of shoppers who used credit cards have not paid off the presents they purchased for family and friends last year, according to a recent holiday spending report by NerdWallet. The site polled more than 1,700 adults in September.  

“Between buying gifts and booking peak-season travel, the holidays are an expensive time of year,” said Sara Rathner, NerdWallet’s credit cards expert. “Not only are consumers at risk of getting into credit card debt, but that debt can stick around long after the decorations come down.”

More from Personal Finance:
2 in 5 cardholders have maxed out a credit card or come close
2.5% adjustment to Social Security benefits coming in 2025
‘Fantastic time’ to revisit bonds as interest rates fall

The stakes are higher in 2024 with credit card debt already at $1.14 trillion.

This year, spending between Nov. 1 and Dec. 31 is expected to increase again to a record total of $979.5 billion to $989 billion, according to the National Retail Federation.

Shoppers may spend $1,778 on average, up 8% compared with last year, Deloitte’s holiday retail survey found. Most will lean on plastic: About three-quarters, 74%, of consumers plan to use credit cards to make their purchases, according to NerdWallet.

Meanwhile, credit cards are one of the most-expensive ways to borrow money. The average credit card charges more than 20% — near an all-time high.

“Somehow it’s been programmed into the American consumer, that essentially says ‘I have to spend a lot of money on people I care about,'” said Howard Dvorkin, a certified public accountant and the chairman of Debt.com.

It doesn’t have to be that way, he said.

“There’s no magic wand, we just have to do the hard stuff,” said Candy Valentino, author of “The 9% Edge.” Mostly that means setting a budget and tracking expenses.

Valentino recommends reallocating funds from other areas — by canceling unwanted subscriptions or negotiating down utility costs — to help make room for holiday spending.

“A few hundred dollars here and there really adds up,” she said. That “stash of cash is one way to set yourself up so you are not taking on new debt.”

Valentino also advises consumers to start their holiday shopping early to take advantage of early deals and discounts or try pooling funds among family or friends to share the cost of holiday gifts.

Then, curb temptation by staying away from the mall and unsubscribing from emails, opting out of text alerts, turning off push notifications in retail apps and unfollowing brands on social, she said.

“It will lessen your need and desire to spend,” Valentino said.

Also consider an investment, such as individual stocks or bonds or a charitable donation, instead of gifts to create a more lasting impression. Making something from scratch, such as cookies, a candle or a sugar scrub, may also prove especially meaningful, Valentino said.

Subscribe to CNBC on YouTube.

Americans often splurge on gifts during the holidays.

This year, holiday spending between Nov. 1 and Dec. 31 is expected to increase to a record total of $979.5 billion to $989 billion, according to the National Retail Federation.

Even as credit card debt tops $1.14 trillion, holiday shoppers expect to spend, on average, $1,778, up 8% compared to last year, Deloitte’s holiday retail survey found.

Meanwhile, 28% of holiday shoppers still have not paid off the gifts they purchased for their loved ones last year, according to another holiday spending report by NerdWallet. 

Heading into the peak holiday shopping season, 74% of shoppers plan to use credit cards to make their purchases, NerdWallet found.

Another 28% will tap into savings to buy holiday gifts and 16% will lean on buy now, pay later services. NerdWallet polled more than 1,700 adults in September.  

More from Personal Finance:
Could buy now, pay later loans affect your credit score? 
Americans can’t stop ‘spaving’ — how to avoid this financial trap
Don’t believe these money misconceptions

Buy now, pay later is now one of the fastest-growing categories in consumer finance and is only expected to become more popular in the months ahead, according to the most recent data from Adobe. Adobe forecasts buy now, pay later spending will peak on Cyber Monday with a new single-day record of $993 million.

However, buy now, pay later loans can be especially hard to track, making it easier for more consumers to get in over their heads, some experts have cautioned, even more than credit cards, which are simpler to account for despite sky-high interest rates.

Credit cards are one of the most-expensive ways to borrow money. The average credit card charges more than 20% — near an all-time high.

Alternatively, the option to pay in installments can make financial sense, especially at 0%. 

Yet, buy now, pay later loans “are just another form of credit, disguised as something for free,” said Howard Dvorkin, a certified public accountant and the chairman of Debt.com.

The more buy now, pay later accounts open at once, the more prone consumers become to overspending, missed or late payments and poor credit history, other research shows.

If a consumer misses a payment, there could be late fees, deferred interest or other penalties, depending on the lender. In some cases, those interest rates can be as high as 30%, rivaling the highest credit card charges. 

“This is just another way for financers to put their hands in the pocket of consumers,” Dvorkin said. “It’s a trojan horse.”

Subscribe to CNBC on YouTube.

As much as consumers love shopping online, most hate to shell out for shipping charges. Paying for return shipping is even worse.

These days, 77% of shoppers check the return policy before making a purchase, according to a September survey of 1,500 adults by GoDaddy. Nearly a third, 30%, of consumers said paying for return shipping was more annoying than jury duty and going to the Department of Motor Vehicles.

When it comes to winning over customers, return fees matter, other reports also show.

More from Personal Finance:
Miami is ‘ground zero’ for climate risk
Why climate change may cost you big bucks
8 easy — and cheap — ways to cut your carbon emissions

Last year, retailers got more aggressive when it came to charging for returns, with an average extra fee just shy of $7, according to returns solution company Optoro.

However, 37% of shoppers said the most frustrating thing about making a return is paying the shipping charge, and 62% of shoppers said they won’t initially shop with a brand if they charge a return fee, Optoro found.

While restocking fees and shipping charges may help curb the amount of inventory that is sent back, “charging for returns will absolutely depress your sales,” said Amena Ali, Optoro’s CEO.

This is especially true as the peak holiday shopping season kicks into high gear.

“Businesses need to take a look at the ways they could be inadvertently turning customers away,” said Amy Jennette, GoDaddy’s trends expert.

Still, companies are doing what they can to keep returns in check.

Last year, 81% of U.S. retailers rolled out stricter return policies, including shortening the return window and charging a return or restocking fee, according to a report from return management company Happy Returns.

Others, including Amazon and Target, have simply told shoppers to “keep it,” offering a refund without a taking the product back.

“Retailers have no choice but to figure out how to manage costs,” Ali said.

The return rate in 2023 was about 15% of total U.S. retail sales, or $743 billion in returned goods. For online sales, the numbers of returns are even higher, with a return rate closer to 18%, or $247 billion of merchandise purchased online returned, according to the National Retail Federation’s most recent data.

With the explosion of online shopping during and since the pandemic, customers got increasingly comfortable with their buying and returning habits and more shoppers began ordering products they never intended to keep. Nearly two-thirds of consumers now buy multiple sizes or colors, some of which they then send back, a practice known as “bracketing,” according to Happy Returns.

But all of that back and forth comes at a hefty price.

In fact, processing a return costs retailers an average of 30% of an item’s original price, Optoro also found. But returns aren’t just an issue for retailers’ bottom line.

“Often returns do not end up back on the shelf,” and that also causes a problem for retailers struggling to enhance sustainability, according to Spencer Kieboom, founder and CEO of Pollen Returns, a return management company. 

Also referred to as reverse logistics, a return requires sending products backward through the supply chain to be repackaged, restocked and resold — sometimes overseas.

That reordered process is “like playing a tape in reverse,” said Optoro’s Ali.

It generates even more carbon emissions to get those items back in circulation, if they even make it that far. In some cases, returned goods are sent straight to landfills, while only 54% of all packaging is recycled, according to the U.S. Environmental Protection Agency.

Last year’s returns created 8.4 billion pounds of landfill waste, according to Optoro.

Subscribe to CNBC on YouTube.