The school year lands right as we start gearing up for the holidays, and all the expenses that come along with them. But for more than half of the 1,000+ parents of school-aged children surveyed by Accredited Debt Relief, 54% say they’re still paying off back-to-school expenses when the holiday shopping season begins. One in four lean on credit to get through the beginning of the school year and holiday season to make it into the next year. What’s more, some 60% of parents are carrying school-related debt right now, and 27% owe $1,000 or more before they even start back to school shopping.
Old debts don’t have to haunt you throughout the holiday season — there are steps you can take now to reduce the impact of those growing balances, and even put yourself in a better financial position by the time celebration season rolls around.
Key Takeaways
- 54% of parents are still paying off back-to-school expenses when the holiday shopping season begins, and 25% finance straight through the holidays most years.
- 60% of parents are carrying school-related debt right now, and 27% owe $1,000 or more before this fall’s spending even starts.
- 29% of parents were pushed into minimum-only payments by school costs, the most common tradeoff in the survey.
1. Get a Clear View of the Damage this Year
Parents cover the school costs based on the resources available to them, and that often means turning to credit. Among parents surveyed, 32% are carrying a credit card balance for school expenses, 22% used a buy now, pay later service and 13% turned to a cash advance. Many used more than one method in the same season, but only 23% cleared their school shopping bills in the same month.
If you want to get on top of school debt before the holiday season starts, the first step is to know how much you owe.
- Write down every account with a school charge on it, including the balance, the interest rate and the minimum due.
- Itemize your buy now, pay later plans, even the ones with no interest.
Seeing everything you owe in one place can be anxiety-inducing, but knowing how much you owe is key to taking action, especially because you can see what will snowball into a real problem.
2. Focus on the Highest-Rate Balance First
School costs pushed 29% of parents into making minimum-only payments. And while the minimum payment might feel like a godsend for your budget, the long-term consequences of sticking to the minimum payment can mean you spend more clearing that debt over time — way more.
Let’s say you spent $1,000 on back-to-school shopping with a credit card, and that card’s interest rate is 22%. Assuming a minimum payment of 3% of the balance — and that you don’t add to the debt — you’ll pay about $30 per month, both won’t clear that debt for 112 months. That’s nearly ten years of payments on one year’s back-to-school shopping. What’s more, you will have paid $1,046 in interest, more than doubling the original balance. But make a flat $50 payment instead of the minimum each month, and your repayment timeline drops significantly — you’d achieve debt freedom in 26 months and for a little over $250 in interest.
A little bump in payments can go a long way, especially for balances under $5,000. But which debt you focus on first matters, too. Here’s how you can strategically tackle your various back-to-school bills:
- Order your debts from highest-interest to lowest using the list you made in step one.
- Narrow your focus:
- Tackle the highest interest rate debt first if you have a mix of low- and high-interest debts
- Tackle the biggest balance first if you interest rates are all similar
- Make your minimums on other debts, and put as much as you can spare into paying down the account you chose.
The more money you can put toward clearing high-interest or large balances, the more you stand to save in the long run.
Sending extra to one account will move the number faster than anything else on this list. The harder part is what gets added to that balance between now and December.
The Power of Paying a Little Extra Each Month
$1,000 in back-to-school charges on a credit card at 22% APR.
| Monthly payment | Time to pay off | Interest paid | Total paid |
|---|---|---|---|
| Minimum only Starts near $30 and shrinks | 112 months 9 years, 4 months | $1,066 | $2,066 |
| A flat $50 Same amount every month | 26 months 2 years, 2 months | $257 | $1,257 |
Assumes a $1,000 starting balance, a 22% APR, a minimum payment of 3% of the statement balance with a $15 floor, and no new charges. Figures calculated with Bankrate’s minimum payment calculator.
3. Clear Your Buy Now, Pay Later Plans Before Thanksgiving
Our survey found that about 22% of parents used a buy now, pay later (BNPL) service for school costs. But those small minimum payments can get easily lost in daily life’s ledger.
If you’ve missed payments on a BNPL plan, you’re not alone. In a separate Accredited Debt Relief survey, nearly half of buy now, pay later users said they’d already run into a financial consequence from using it.
So do future you a favor by clearing those repayment plans now. Pull up each app, confirm the remaining installments on your school-season purchases and pay them off if you can. Then remove any saved buy now, pay later option from your checkout defaults. From there, the next move is lowering what the remaining balance costs you.
4. Refocus on What Makes the Holidays Memorable
Back-to-school spending already costs some families more than money. Among parents surveyed, 76% made at least one tradeoff to cover school costs, including 25% who cut back on essentials and 19% who kept a child out of an activity.
The holidays work the same way, and it’s important to remember that for all the hype around gifting, the things your kids will actually remember often cost little or nothing at all. To keep holiday spending in check, consider:
- Sticking to a strict budget for gifting — one you’ve decided ahead of time, and agreed upon with the people you split expenses with.
- Ask your kids what they remember from last year’s holiday season, and really listen to their response. For example, if your kid remembers that they “really loved going ice skating and having hot chocolate with cousins,” they’re not necessarily saying they need to do exactly that again — they’re thinking of the fun and comfort of being with family. How can you foster that same feeling this year?
- Trade one present for a tradition, whether that’s a baking night, a movie marathon or a drive to see the lights.
- Set a cap with extended family, or draw names instead of buying for everyone.
Naming what matters keeps you focused on the present, not the presents, and helps you start the new year on better financial footing. But if that balance isn’t moving no matter what you cut, the problem may be bigger than one season of spending.
5. Call Accredited Debt Relief to Lower Your Monthly Payment
The survey’s most telling finding is what comes next. Among parents already carrying $1,000 or more in school debt, 86% still plan to spend at least $1,000 per child this fall, and 68% are confident they can do it without falling further behind. But no matter if you came in under- at- or over-budget, a balance that doesn’t go down is one that can become a thorn in your side. That’s where we can make a major difference.
Accredited Debt Relief’s award-winning program works with creditors to reduce monthly payments and can help you become debt-free in as little as 24-48 months. Our program is so effective that we save our clients an average of $608 a month, freeing up significant flexibility in their budgets. People with credit cards, personal loans, medical bills and some private student loans stand to see immediate financial relief — so talk to a Certified Debt Specialist today.
Frequently Asked Questions
Should I pay off school debt first or start saving for the holidays?
Always focus on paying down existing debts before adding more to your plate. If the margin is thin, there are still ways to pay off debt on a tight budget.
Is it worth opening a store card at checkout to get the holiday discount?
A store card discount applies to one purchase, while the interest rate applies to every month you carry a balance. Say a 20% discount saves you $100 on a $500 purchase and you carry the remaining $400 on a card charging 30%. That might seem high, but the CFPB found nearly half of the largest issuers offer at least one card with a maximum purchase APR above 30%. In this case, the interest catches up to the discount in about 10 months. And if you’re already carrying school debt elsewhere, a new account before December doesn’t give you breathing room — it just adds to what you owe.
What if my balance won’t go down no matter what I try?
That’s more common than most parents realize, and it usually means the interest is outpacing what you can afford to send each month. A U.S.-based Certified Debt Specialist can walk you through your options in a free consultation and tell you what a lower monthly payment would look like for your situation, with no obligation to enroll.
Sources Cited
“60% of Parents Are Carrying School-Related Debt. Most Are Still Planning to Add More This Fall.” Accredited Debt Relief, August 4, 2026.
“Federal Reserve Board issues Economic Well-Being of U.S. Households in 2025 report.” Board of Governors of the Federal Reserve System, May 13, 2026.
“Consumer Credit – G.19.” Board of Governors of the Federal Reserve System, July 8, 2026.
“Consumer Use of Buy Now, Pay Later and Other Unsecured Debt.” Consumer Financial Protection Bureau, January 13, 2025.
“Credit card data: Small issuers offer lower rates.” Consumer Financial Protection Bureau, February 16, 2024.
The information on this site is provided as a general resource and does not constitute legal, tax, or financial advice. While we strive to ensure accuracy, this content, including any third-party sources referenced, should not be the basis for any financial decision. For guidance specific to your situation, we recommend consulting a qualified professional. Individual results may vary.