Holiday Spending to Reach $1 Trillion Amid Record Debt
Consumers face record levels of unsecured debt as holiday sales are projected to hit $1 trillion this year.
Updated on Oct. 20, 2026 in Spending
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Does your current household debt level cause you concern about your long-term financial stability?
As holiday sales are projected to reach $1 trillion in 2026, many households are managing record-high levels of unsecured debt. Credit counseling enrollment has risen 9.5% this year as consumers face financial strain heading into the peak spending season.
Why it matters
The intersection of record holiday spending projections and rising debt levels highlights increasing pressure on household budgets. Persistent inflation and reliance on credit to fund purchases are driving more Americans to seek structured financial assistance.
Average unsecured debt among credit counseling clients has hit $40,200, the highest level recorded since 2013. Meanwhile, total debt under management now reaches $1 billion, up significantly alongside a 9.5% increase in annual counseling enrollment.
The players
Money Management International
A nonprofit credit counseling agency that manages debt repayment plans for consumers.
The details
Consumers are increasingly turning to credit to manage holiday purchases, a behavior compounded by the broader impact of inflation on living costs. Many shoppers are using artificial intelligence tools to scout for lower prices and coupon codes to mitigate these expenses. Despite active spending, particularly among upper-income households, the rise in debt enrollment suggests that many families are struggling to balance holiday commitments with existing financial obligations.
Timeline
2013 was the year of the previous peak for client debt levels.
2026 marks the year of a 9.5% increase in credit counseling enrollment.
Money Landscape
The current debt climate mirrors the high levels last seen during the 2013 peak, signaling a shift in how households handle spending commitments. This uptick reflects a broader trend where credit reliance is increasingly used to sustain holiday-level expenditures.
If you are struggling to manage credit card balances during the holiday season, consider reviewing your budget to prioritize essential living expenses. Speak with a certified financial professional to discuss strategies for debt consolidation or repayment plans if your debt load becomes difficult to manage.
The takeaway
Holiday sales projections nearing $1 trillion demonstrate the scale of consumer spending, yet the rising reliance on credit warrants caution. Audit your current credit card interest rates and monthly payment obligations to ensure your holiday spending aligns with your long-term financial health.
Further reading
For more on managing holiday expenses, visit the Spending section.
Live Poll
Does your current household debt level cause you concern about your long-term financial stability?
