Money Management International Reports $1 Billion Debt Surge

More than 60,000 individuals enrolled in Money Management International’s debt management plans now owe over $1 billion in credit card and personal loan debt. This figure represents the highest total recorded by the national nonprofit in thirteen years.

Participants are increasingly using credit cards to cover daily needs such as groceries, gas, and vehicle repairs. Prices for these items have risen approximately 30 percent since 2019. Ted Rossman of Money Management International attributes the surge to inflation, high interest rates, and the general rise in the cost of living.

“The story behind the story is inflation, high-interest rates, just the rising cost of living that is really straining household budgets,” Rossman said. “And we’re going back to some unpleasant numbers that followed the financial crisis.”

Rossman noted that even households with employed members and salary increases often find their pay insufficient to match costs for housing, medical bills, and child care. He urged those struggling with debt to seek assistance immediately rather than waiting until the situation worsens.

“Definitely speak up, ask for help, don’t be ashamed,” Rossman said. He explained that a common stigma suggests debt results from irresponsible spending, such as shopping sprees, but often stems from practical expenses like medical bills and car repairs.

According to Rossman, half of credit card holders carry balances from month to month. He suggested several paths to break this cycle, including contacting a nonprofit credit counselor, securing a personal loan, or using a zero percent balance transfer card to consolidate and pay down debt.