New Data from Nonprofit Money Management International Shows a Growing Demand for Help with Rising Debt Across All Age Groups
The largest increase in debt distress is among young people, aged 18-29
News provided byMoney Management International
Sep 19, 2023, 12:00 PM ET
STAFFORD, Texas, Sept. 19, 2023 (GLOBE NEWSWIRE) -- Money Management International (MMI), a nonprofit credit counseling and debt management organization, today released data showing an increase in debt distress across all age groups in August 2023 compared to August 2022.
The data shows that the average number of clients seeking help from MMI increased by 40% in August 2023 from August last year. This increase was seen in all age groups, with the largest increase seen from January to August 2023 among those aged 18-29 (56%).
The increase in debt distress is mounting due to the pile on of several factors at once, including the rising cost of living, inflation, rising interest rates, and the economic uncertainty caused by the coming resumption of student loan payments. MMI’s data also indicates that clients seeking credit counseling in 2023 have an average unsecured debt load 26% higher than those counseled during the same timeframe in 2022.
“We are seeing a growing number of people struggling to make ends meet under an increasing burden of debt,” said Jim Triggs, President and CEO of MMI. “The rising cost of living is making it harder for people to afford their basic necessities, and the economic uncertainty is making it difficult for people to plan for the future.”
Kate Bulger, Vice President at MMI, provided additional insight: “A balance that used to be manageable with lower interest rates is unmanageable now that rates are so high. For young people, this is often the first time they’ve ever experienced higher interest rates. While inflation has cooled, the cost of goods remains high, and salaries haven’t kept up. Housing costs are less volatile than last year, but they’ve still been rising since January and will continue to do so as higher interest rates begin to affect more and more multifamily rental properties. Slower inflation isn’t providing people with any relief, it’s just preventing some potential additional hardship. Unless the price of goods goes down or salaries increase, this trend is going to continue for a while.”
MMI offers a variety of services to help people get out of debt and achieve financial peace of mind. Programs include credit counseling and debt management plans, which can significantly reduce interest rates and expedite repayment while improving creditworthiness. Last year, MMI helped over 46,000 people repay nearly $200MM worth of debt.
“We are here to help people get back on their feet,” said Triggs. “If you are struggling with debt, please don’t hesitate to reach out to us for help.”
Money Management International (MMI) is changing how America overcomes financial challenges. MMI helps create, restore, and maintain a life of financial wellness through empowered choices. For 65 years, our clients have achieved financial confidence through nonprofit programs that educate, motivate, and liberate. MMI inspires action by delivering expert professional guidance and timely solutions aligned with our client's goals. Experiencing a financial challenge? Find your solution 24/7 at 866.864.8995 and MoneyManagement.org.
For reporters looking to interview real people for stories, MMI has created a group of over 300 debt management clients from across the country who are willing to share their experiences with the media in the hopes of helping others challenged with debt. Our peer advocates have paid off $14 million of debt and now serve as MMI ambassadors. Hear from them on MMI’s podcast, Long Story $hort.
To schedule an interview with MMI’s Jim Triggs, Kate Bulger, or any of our MMI Peer Advocates, please contact:
Lori Geary, 404.551.2151, firstname.lastname@example.org
Thomas Nitzsche Money Management International 404.490.2227 Thomas.Nitzsche@MoneyManagement.org Lori Geary Lexicon Strategies 404.551.2151 email@example.com
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