After pulling back on summer spending, Americans already carrying unsecured debt are heading into fall facing financial pressure from rising back-to-school costs, natural disasters and essential pet care expenses, according to a new report from debt settlement provider National Debt Relief.
Survey data found that nearly eight in 10 planned to cut summer spending “a lot” or eliminate certain expenses. Fifty-three percent said they were skipping a summer vacation entirely. According to the report, leisure was the first to go, with 52 percent of respondents cutting tourism and leisure trips. Additionally, 39 percent cut back on family visits, and 37 percent limited cookouts, gatherings and other entertainment-related expenses.
For some respondents, vacation costs did not end when the trip ended, with 41 percent reporting they had taken on debt to fund a vacation at some point and 32 percent saying they had incurred vacation debt and regretted it.
“For households already managing credit card balances, personal loans or other financial obligations, the challenge becomes deciding which remaining expenses or essential purchases are possible,” said Brit Simon, chief experience officer, National Debt Relief. “These findings show how expenses beyond recurring monthly bills collide within the same household budget, leaving families with fewer places to cut and a greater risk of taking on more debt.”
Parents are also paying the price for back-to-school expenses, with 68 percent saying they expect to spend at least 20 percent more this year. Meanwhile, 83 percent are making changes to save money on back-to-school shopping, including waiting for sales or delaying purchases (33 percent), reusing backpacks or supplies (32 percent), skipping purchases altogether (29 percent) and shopping at discount or dollar stores (29 percent).
About 21 percent plan to use credit cards or buy now, pay later (BNPL). Among those respondents, 64 percent said they lack enough cash or savings to pay the full cost upfront, while 57 percent want to spread out payments to ease the financial burden. One in four are not very confident they can cover all education-related costs for the 2026-27 school year.
Nearly one in five clients reported being impacted by a natural disaster, while nearly one in 10 reported being impacted by a natural disaster within the last three years. More than half of those affected by a natural disaster in the past year are still struggling to get back on their feet. Even among those impacted two to three years ago, 42 percent have yet to fully recover financially.
Three out of four disaster-affected respondents faced expenses insurance did not cover, revealing a significant protection gap. One in five faced disaster-related expenses exceeding $10,000. Half of respondents (50 percent) with uninsured expenses cited home repairs as the number 1 financial consequence. Income disruption ranked second at 32 percent, showing that disasters can affect both what people own and what they earn.
Two-thirds of respondents (67 percent) who spent money on pets experienced financial stress due to pet-related expenses. Half made financial adjustments to cover pet expenses, including 24 percent who cut back on personal spending and 11 percent who delayed paying down debt.
Additionally, 29 percent borrowed money, used credit cards or took out a loan to cover pet expenses, and nearly half of those respondents incurred between $1,000 and $4,999 of debt. One-third of all respondents (33 percent) said pet-related debt played at least some role in accumulating the debt they later enrolled in National Debt Relief’s debt settlement program to address.
