Updated
Updated · The New York Times · Aug 7
Debt Counseling Enrollment Hits 10-Year High as 41,000 Consumers Seek Help With Basic Bills
Updated
Updated · The New York Times · Aug 7

Debt Counseling Enrollment Hits 10-Year High as 41,000 Consumers Seek Help With Basic Bills

1 articles · Updated · The New York Times · Aug 7

Summary

  • Nearly 41,000 clients sought counseling from Money Management International in the first half of 2026, up about 10% from a year earlier, pushing enrollment in its debt-management plans to the highest level in nearly a decade.
  • Groceries, car repairs and medical bills—not luxury spending—are driving the strain, with counselors saying many households are using credit cards simply to cover basic expenses as incomes fail to keep up.
  • Consumers in their 30s to mid-40s make up the largest share of clients, carrying about $41,000 in average unsecured debt, mostly credit-card balances.
  • Young adults in their late teens and 20s are the fastest-growing group, with average unsecured debt of about $20,000—up 12% from 2025—and roughly 40% also carrying student debt averaging $35,000.
  • GreenPath Financial Wellness reported a separate 20% rise in people seeking help in the first half, reinforcing signs that debt stress is spreading as day-to-day costs climb.

Insights

With student loans excluded from most relief plans, how will the fastest-growing demographic of young debtors escape this financial trap?
If Americans are maxing out credit cards just to buy groceries, what happens when those high-interest safety nets finally snap?