United Debt Relief Urges Households to Set a Holiday Budget Before the Borrowing Starts

Sept. 11, 2026 - PRLog -- Americans added $21 billion to their credit card balances in the second quarter of 2026, bringing the total to $1.263 trillion, according to the Federal Reserve Bank of New York. United Debt Relief is urging households to decide how they will pay for the holidays before the spending starts, rather than after the statements arrive.

"Every January, United Debt Relief hears from people carrying debt they took on in November and December without a plan," said Nick Avila, Founder, United Debt Relief. "Deciding in September what you can actually afford is the cheapest financial move available all year."

Three facts are worth understanding before any borrowing decision.

What a carried balance costs. The average annual percentage rate on credit card accounts assessed interest was 22.15% in the second quarter of 2026, according to the Federal Reserve's G.19 consumer credit release. A balance carried past the holidays is priced at that rate until it is repaid.

Household debt is not actually rising. Total household debt fell by $13 billion in the second quarter to $18.8 trillion, a decrease of 0.1%, and 4.7% of outstanding debt was in some stage of delinquency. Easing aggregate balances do not mean any household has room to add more.

What the options involve. Under the Federal Trade Commission's Telemarketing Sales Rule, a debt settlement provider cannot charge a fee until a debt has been renegotiated under a signed agreement and the consumer has made at least one payment under it. Under the Fair Credit Reporting Act, charge-offs and collections are generally reported for seven years from the original delinquency. The IRS generally treats canceled debt as taxable income, with a Form 1099-C filed once the forgiven amount reaches $600, and exclusions for bankruptcy and insolvency.

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About United Debt Relief

United Debt Relief agents guide consumers through five programs, explain what each one means for their credit, timeline and budget, and personally handle enrollment with in-network providers. Every in-network provider is Better Business Bureau Accredited with an "A" rating and is stringently vetted. Founded in 2008 and based in San Diego, United Debt Relief serves clients in all 50 states across Debt Settlement, Debt Validation, Debt Consolidation Loans, Tax Resolution, and Credit Repair & Builder. Consultations are free. Debt settlement carries no upfront fees.

United Debt Relief is not a lender, creditor, or law firm. Individual results vary.