US consumers face financial pressure ahead of holiday season

Recent surveys indicate significant financial anxiety among Americans heading into the holiday shopping season. According to findings from the ICSC and Intuit Credit Karma, nearly half of respondents expect to borrow money for holiday purchases they cannot afford in full, with approximately 23% anticipating carrying that debt into 2027.

Financial pressures are being driven by everyday expenses, specifically groceries and utility bills. About 50% of Americans report being more worried about money this holiday season than they were last year, and 61% feel as though the economy is in a recession. These concerns are impacting long-term financial health, as nearly half of consumers expect holiday spending to interfere with savings, retirement contributions, or existing debt payments.

Despite these challenges, consumer behavior shows a mix of resilience and adaptation. While 88% plan to buy gifts and 78% expect to spend at least as much as last year, many are changing how they shop. Consumers are increasingly researching products to compare prices, choosing cheaper brands, or trying unfamiliar retailers to manage budgets. Younger demographics, particularly Gen Z and millennials, report higher levels of pressure to overspend and a greater reliance on 'buy now, pay later' services.