A quarter of Americans still have holiday debt from 2022 - as experts warn shoppers that soaring interest rates mean it could take 40 MONTHS to pay off a $1,000 credit card bill

As shoppers head to stores or trawl for online Black Friday deals, experts are warning that a quarter of Americans are still in debt from holiday spending last year. 

According to a survey by personal finance site WalletHub, 24 percent of Americans are still paying off lingering credit card balances from 2022. 

Almost a fifth of Americans admitted they would apply for a new credit card in order to help pay for holiday shopping this year, the research found. 

It comes as credit card balances rose in the third quarter of this year by $48 billion to $1.08 trillion, as Americans continue to grapple with the impact of stubborn inflation on household budgets. 

Benchmark borrowing costs are now at a multi-decade high of between 5.25 and 5.5 percent, following an aggressive campaign of interest rate hikes by the Federal Reserve. 

Elevated interest rates mean that it could be more expensive and take longer to pay off any outstanding debt, experts warn. 

According to Bankrate, the interest rate on an average credit card is nearing 21 percent as of this month. 

Ted Rossman, senior industry analyst at Bankrate, told CNBC: 'Even a more modest $1,000 balance (from last year's holiday gifts, perhaps) would keep someone in debt for 40 months and cost them $390 in interest if they only make minimum payments at the current average rate of 20.72 percent.'

'If you're in a hole, stop digging,' he said.

Rossman recommends using a credit card like a debit card by paying in full to avoid interest. 

Americans should also take advantage of credit card rewards programs and buyer protections, he told the outlet. 

If you have already accumulated rewards, Rossman said, the holidays can be an optimal time to use them to your advantage by redeeming points for gift cards or cash back. 

But he warned that you should not take on more debt just to get rewards on a credit card.  

If you are carrying a balance, inflated interest charges could eat into any money you are able to save by using points, Rossman added. 

A record 130.7 million people are expected to shop in stores and online in the US on Black Friday this year, according to estimates from the National Retail Federation (NRF).

Shoppers plan to spend an average of $875 on holiday purchases - $42 more than last year - with clothing, gift cards and toys at the top of most shopping lists, according to a survey of 8,424 adults conducted early this month by the NRF. 

Online spending on Thanksgiving Day was up 5.5 percent on a year ago, according to Adobe Analytics, with shoppers spending $5.6 billion on the day alone. 

According to the company - which tracks holiday spending patterns - that is almost double the $2.87 billion Americans spent in 2017.