Back-to-school costs expose thin margins for American households

According to research from the Achieve Center for Consumer Insights, 55% of consumers carrying debt use credit cards to cover essential costs, with more than a quarter maintaining those balances for over six months. This reliance on borrowing indicates that many household budgets no longer possess the flexibility to absorb even predictable seasonal spikes in spending.

Andrew Housser, co-founder and co-CEO of Achieve, notes that the problem lies in the erosion of financial margins. When families must prioritize school supplies over other necessities, or delay medical treatments to manage debt, it signals an inability to recover between spending cycles. With 50% of surveyed consumers reducing spending on basic needs and 19% skipping medical care to compensate, the season has become a conveyor belt of compounding obligations that often stretches into the holiday shopping period. Instead of focusing solely on discounts, financial experts suggest that households evaluate their full debt picture, including interest rates and repayment timelines, before assuming new, seemingly manageable payment plans.