Most Homeowners Are Poised To Enter 2026 Drowning in Holiday Debt

While the holidays are an exciting time, they’re also expensive—especially if you have a mortgage, property taxes, and home maintenance to think about.

Despite the high cost of homeownership and everyday expenses, a survey by Point.com found that homeowners plan to spend more this holiday season than last year, with nearly 70% expecting to carry holiday credit card debt into 2026.

According to the survey, the average homeowner predicts they'll dish out $1,000 to $1,999 on gifts, travel, and seasonal activities, and most will rely on credit cards to cover them.

When you consider that credit card debt just hit $1.23 trillion, inflation and tariffs continue to push prices higher, and borrowing costs remain near historic highs, these figures are quite alarming. 

So, what does the disconnect between spending behavior and economic signals reveal? Homeowners are willing to keep up “normal” holiday spending—even as their financial cushions thin.

What these spending patterns reveal about homeowners

Point.com's survey makes it clear that more and more homeowners are relying on debt to finance everyday living. 

“Incomes haven’t kept up with expenses, but they’re not necessarily in a mood to cut back on annual celebrations either,” says Aaron Terrazas, economist for Point and author of the survey.

The survey also found that nearly 1 in 4 American homeowners say that they feel “extremely overwhelmed” by their current level of credit card debt— and this is before holiday spending.

“This shows that rising credit card debt takes a psychological toll, not just a financial one,” explains Terrazas.

Terrazas adds that while homeowners are carrying more credit card debt, they’re also sitting on record home equity. “For many, it’s a liquidity challenge: Accumulated equity wealth is hard to access when it’s needed most,” says Terrazas.

Why home equity is an emerging alternative for debt relief

After a decade of rising home values, many families now hold much of their personal wealth in their homes. However, their day-to-day finances haven’t kept pace as incomes have fluctuated, costs have climbed, and credit card debt has become more expensive. 

“This gap is pushing some homeowners to look to their home equity as a source of relief.  It’s one of the few sources of wealth that has grown recently,” explains Terrazas.

Fortunately, new products, such as a Home Equity Investment have made it easier and less risky for homeowners to access their accumulated wealth to pay for their current expenses. 

With an HEI, you receive a lump sum of cash to cover your expenses—just like a traditional home equity loan. However, here's the difference:

You don't make any monthly payments. Instead, you'll repay the amount you receive plus a percentage of your home’s future appreciation—through a home sale, refinance, or another funding source at any time during a 30-year term.

Knowledge is power for homeowners during the holidays

While we all aspire to pay off credit card debt quickly, it isn’t always possible due to life circumstances—especially during the holidays and a fragile economy. 

The survey shows that many homeowners expect to spend more this holiday season, and many will carry those balances well into next year. “In this environment, awareness becomes just as important as discipline,” says Terrazas.

 As a homeowner, it’s up to you to understand your exact interest rates, estimate the interest you’ll pay if you carry a balance, and determine how long repayment may take. You may also want to explore other ways to cover your expenses.

“Our data also shows more people are comparing the true cost of revolving debt with other forms of financing, including ways to tap the equity they’ve already built.  The goal isn’t to push spending down, but to make sure families understand the trade-offs,” explains Terrazas.