New Data Shows How Holiday Spending, Housing, Healthcare Are Fueling America's Consumer Debt Crisis

National Debt Relief data reveals Americans are struggling to reset in 2026—nearly 70% of renters were forced to move due to housing costs, and over 40% of parents took on debt for children's medical care

NEW YORK, Jan. 27, 2026 /PRNewswire/ -- National Debt Relief, the industry leader in debt settlement and provider of the most popular debt relief solution in the U.S.^*, today released new findings from a series of consumer surveys revealing how the cumulative impact of daily living expenses is contributing to financial strain nationwide. The data highlights three key pressure points: holiday spending, rising housing costs, and unexpected healthcare expenses related to parenting.

As the year gets underway, many Americans are taking stock of their finances—looking back on the challenges of the past year and setting intentions for the months ahead. But this new data from National Debt Relief reveals just how difficult that reflection can be: rising costs, seasonal expenses, and mounting financial obligations are already testing people's ability to regain control of their finances and move forward with confidence.

Are Americans Borrowing Their Way Through the Holidays?
New survey data from more than 2,100 National Debt Relief clients^** paints a stark contrast to the dominant "holiday spending boom" narrative. While overall consumer spending may have risen, the reality for many households was very different.

National Debt Relief found 78% of respondents spent less during the holidays, not by choice, but out of financial necessity. Even so, many still entered 2026 in a more precarious position because of debt accrued during the holiday season.

Other key findings include:

• Holiday Spending Anxiety Is Widespread: More than half (54%) said they were concerned about their holiday gift spending relative to their financial situation.
• Borrowing Filled the Gap: 35% borrowed to cover holiday costs.
• Buy Now, Pay Later Led the Way: Buy Now, Pay Later (BNPL) was the most commonly used borrowing method, outpacing credit cards, personal loans and borrowing from friends or family.
• Long-Term Consequences: 53% said their holiday spending will negatively impact their financial wellbeing in 2026, affecting budgets, debt repayment plans and financial goals.

"The issue isn't excessive spending, it's the cost of even modest holiday participation," said Cathleen Bell, Vice President, Customer Research & Insights, National Debt Relief. "Even after cutting back, many still had to borrow, and now that debt is following them into the new year."

Are Housing Costs Driving Renters into Debt?
New data from nearly 3,500 National Debt Relief clients^** shows just how deeply the housing crisis is tied to rising debt. Among renters, nearly one in three (31%) moved in the last two years, and almost 70% said the decision was driven—at least in part—by rising rent.

The data reveals a broader financial strain caused by housing costs:

• Housing Costs Are Fueling Debt: 75% of respondents say the rising cost of housing played a role in accumulating the debt that led them to seek help.
• More Than a Financial Burden: 79% say the rising cost of housing is affecting their personal life, and 55% their work life.

"Renters are especially vulnerable; many are being forced to choose between affordability and stability," said Bell. "Housing is no longer just a cost—it's a major driver of debt."

How Often are Parents Struggling to Afford Routine Medical Costs?
Cold and flu season isn't just costing parents sleep—it's costing them money they don't have. In National Debt Relief's survey of 2,000 U.S. parents, more than 40% said they went into debt just to pay for their children's doctor visits and prescriptions—a powerful example of how routine care is becoming financially unsustainable.

Additional findings underscore the long-term toll.

• Young Kids, Bigger Burden: Parents of children under 5 years of age were the most likely to hold medical debt tied to doctor visits.
• Parent Health Sacrifices: Parents in debt were twice as likely to skip meals or neglect their own physical and mental health.
• More Than a Seasonal Problem: The average indebted parent now carries $12,000+ in medical debt.

"Parents are sacrificing their own well-being to care for their families," added Bell. "Even basic healthcare is pushing families further into financial hardship."

Together, these findings reveal the weight many Americans carry beneath the surface, where everyday costs add up, and tough choices take a personal toll.

"What this data really shows is strain, not recklessness, and a measure of resilience," said Brit Simon, Chief Experience Officer, National Debt Relief. "People are doing their best under unprecedented pressures, and they deserve support, not shame as they try to move forward and get out of debt."

Can Americans Still Find a Safe, Confident Way Out of Debt?
With more Americans facing debt tied to everyday expenses, many are looking for solutions that offer both relief and a path forward. Debt settlement is an option for those with $7,500 or more of unsecured debt, such as credit card debt, medical bills, or personal loans. National Debt Relief's debt settlement program helps clients get out of debt more quickly than making minimum payments, avoid bankruptcy, and pay less than what they originally owe in manageable monthly payments that fit their budget.

National Debt Relief is the number 1 brand of choice in its category, according to ongoing brand tracking research.^*** That continued trust reflects a growing demand for real, proven solutions that provide consumers with knowledge, guidance, support, and a personalized plan to help them face their debt and build a better financial future with courage and confidence.

Learn more at NationalDebtRelief.com or call 1-800-718-0487 for a free, no-obligation consultation with a certified debt specialist.

About National Debt Relief
Since 2009, National Debt Relief has helped people face their debt with confidence. As the debt settlement industry leader, we make the process of getting out of debt less overwhelming and more empowering. National Debt Relief is a Better Business Bureau A+ accredited business, Forbes Advisor's top-rated debt relief company for three consecutive years and is the most highly reviewed and rated debt settlement company on ConsumerAffairs. We have helped over 1.3 million people take meaningful steps toward resolving their debt so they can feel financially and emotionally whole again. Learn more at NationalDebtRelief.com.

References
^* Forbes Advisor 2025. See: https://www.forbes.com/advisor/debt-relief/best-debt-relief-companies/?award=best-debt-relief-and-settlement-companies-award-2025-national-debt-relief  
^** Detailed survey methodology for all surveys referenced above—including sample sizes, collection periods, and demographic breakdowns—will be made available upon request.
^*** Brand ranking based on proprietary brand tracker fielded across a nationally representative consumer audience.

SOURCE National Debt Relief