PASADENA, Calif.–Pasadena Federal Credit Union has launched a limited-time Holiday Loan program aimed helping members consolidate high-interest credit card debt accumulated during the 2025 holiday season.
PFCU said the loan offers an APR as low as 8.99% APR, which is significantly lower than the average credit card rate, and further provides borrowers with fixed monthly payments and a structured repayment plan.
“The initiative comes as Americans nationwide face substantial post-holiday financial strain,” Pasadena FCU said in a statement. “Holiday retail spending in the United States hit record levels in 2025, with consumers spending hundreds of billions of dollars both in stores and online for gifts, meals, and experiences for loved ones, according to Reuters.”
‘More Concerning’ Data
PFCU further cited a NerdWallet report showing approximately 74% of holiday shoppers planned to use credit cards for at least part of their gift buying, and other, “more concerning” data that found about 31% of those who used cards in the previous year still hadn’t paid off those balances by the following year.
“The financial burden extends beyond the initial purchases due to high interest rates. The average credit card interest rate in 2025 hovers around 21—22% APR, according to LendingTree,” PFCU stated. “These rates mean any balance carried forward begins accruing interest immediately, potentially turning small December purchases into larger debts in subsequent months, particularly for cardholders making only minimum payments.”
A Better Alternative
Pasadena Federal said its Holiday Loan offers an alternative with a fixed rate typically far lower than credit card APRs and the ability for borrowers to consolidate debt into a single manageable payment, potentially saving money on interest charges and providing a clear repayment timeline.
