(TNND) —One of America’s largest nonprofit credit counseling agencies says it’s now managing over $1 billion in debt on behalf of its clients.
That’s the most client debt that Money Management Internationalhas overseen in 13 years.
MMI now has more than 60,000 active debt management plans, its highest total since 2017.
And MMI recorded its highest monthly enrollment in over 15 years last month.
“It shows that there’s a lot of financial strain out there,” said Ted Rossman, MMI’s principal consumer finance analyst.
Rossman said MMI was at its busiest during the financial crisis that stretched from 2007 to 2009.
“Those are some of the numbers that we’re challenging right now,” he said.
Despite the dire debt situation for a lot of households, Rossman acknowledged the economy is doing pretty well.
He said the economy’s been growing. The U.S. hasn’t had a recession in a while. And unemployment has stayed pretty low.
But Rossman pointed to the so-called K-shaped economy, where some folks are doing fine while others struggle.
He said there are “divergences in the economy,” and said MMI’s clients tend to be those with lower incomes, worse credit scores and more debt.
Average unsecured debt among MMI’s clients exceeds $40,000, up nearly 5% from a year ago.
MMI’s counseling volume rose 9.5% year-over-year through September.
And Gen Z is MMI’s fastest-growing client group, up 31% from 2025.
Rossman said debt carries a stigma, but he said most people find themselves struggling with it because of practical things, not elaborate vacations or shopping sprees.
“It tends to be medical debt, car repairs, home repairs, also just everyday expenses like gas and groceries outpacing your paycheck,” he said. “This is really the common theme that we hear from clients is, ‘My income used to be enough, and now it’s not.’ I heard that directly from a client just a week or two ago, that she was saying, ‘I make $75,000 a year. That used to be enough. Now it’s not.’ The cost of everything is up.”
Rossman said a lot of families are feeling the cumulative weight of inflation, with overall living expenses up 30% over the last seven years.
“Don’t be afraid to ask for help,” Rossman said.
Running monthly budget deficits is a red flag for families, Rossman said.
He said that MMI can help with both budgeting advice and “the practical interest rate side” of debt.
“On average, our clients come to us with 28% credit card rates,” Rossman said. “We can lower that to just under 8% on average on one of these debt management plans. And we work with you and your creditors to pay it back, usually in about four or five years.”
Some folks won’t need MMI’s help, but everyone can get “free, no commitment, no judgment initial consultations.”
Rossman said making only the minimum payment can keep cardholders in debt for years and cost them thousands of dollars in interest.
You’re in the best position to manage your debt yourself if you have only around $5,000 or $6,000 in credit card debt, a decent income, and strong enough credit to qualify for a 0% balance-transfer card, Rossman said.
“You can get these 0% offers that last almost two years,” he said.
If you owe a little bit more than that, you might be able to get a personal loan for debt consolidation, Rossman said.
“Sometimes that works if you have $10,000 in debt and you trade your 25% credit card rates for 7 (percent) on a personal loan if you have good credit, and you pay that back over four or five years,” Rossman said. “About half of our clients have personal loans. The downside is if you run the credit cards back up. And this sometimes happens. … And that’s often a time that people reach out to us.”
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