Nonprofit MMI: Record Debt Levels and Housing Costs Continue to Strain Household Budgets Entering 2026
“What we’re seeing is sustained financial pressure, not short-term overspending.” - Thomas Nitzsche, MMI Vice President of Public Relations
STAFFORD, Texas, Jan. 15, 2026 (GLOBE NEWSWIRE) -- New client data from nonprofit Money Management International (MMI) reveals continued financial strain across households, driven by record unsecured debt levels, rising housing costs, and other expenses.
In 2025, MMI clients carried an average unsecured debt of $32,600, up 5% from 2024, with December setting a new record as average unsecured debt reached $33,000 and a median balance of $24,000.
MMI’s findings reflect broader national concern about household debt. A recent Bankrate Financial Outlook Survey found that many Americans enter 2026 worried about their ability to manage credit card balances and absorb higher living costs, even when incomes are rising. The survey highlights persistent anxiety across generations about debt and housing affordability.
“When income increases are matched dollar-for-dollar by rising expenses, households don’t get ahead, they fall further behind,” said Thomas Nitzsche, Vice President of Public Relations at MMI. “What we’re seeing is sustained financial pressure, not short-term overspending.”
Key Financial Trends Impacting Consumers
Debt Levels at Record Highs
- Average unsecured debt among new clients climbed 5% in 2025, exceeding $32,600.
- December marked the highest average unsecured debt recorded by MMI.
Income Gains Offset by Rising Costs
- Average monthly net income increased 5%, but monthly expenses rose at the same rate, limiting households’ ability to pay down debt.
Housing Costs Accelerate Financial Strain
- Overall housing costs increased 10% year over year.
- Homeowners: up 11%, averaging $2,180 per month
- Renters: up 8%, averaging $1,400 per month
Debt and Counseling Trends by Generation (2025 Data)
| Generation | YoY Counseling Growth | Avg. Unsecured Debt | YoY Debt Increase | |
| Generation Z | 37% | $16,100 | 4% | |
| Millennials | 6% | $32,000 | 7% | |
| Generation X | 1% | $39,100 | 7% | |
| Baby Boomers | -9% | $34,000 | 6% |
Growing Demand for Credit Counseling
- Credit counseling volume rose for the fourth consecutive year, indicating continued financial stress.
- Referrals to MMI from ChatGPT increased sixfold during 2025, indicating more consumers are using generative AI to manage debt and explore repayment options.
Gen Z Seeking Help Earlier
- Clients ages 18–28 represent the fastest-growing group seeking counseling, with a 37% year-over-year increase.
- While Gen Z carries lower balances than older generations, their average unsecured debt increased 4% in 2025.
“These generational trends align with what we’re seeing nationally,” Nitzsche added. “Younger adults are seeking help earlier, while older generations continue to carry higher balances amid rising non-discretionary costs.”
Steps Consumers Can Take Now
MMI encourages consumers to take proactive steps to regain control of their finances in 2026:
1. Take Inventory
Review all balances, interest rates, and financial obligations to understand where you stand.
2. Look for Small Adjustments
Temporary reductions in discretionary spending can create room for debt repayment. Cardholders who ask their creditors for a lower interest rate are often successful.
3. Avoid Getting Comfortable with Debt
Debt can feel unavoidable, but delaying action often increases long-term financial pressure.
4. Seek Trusted Guidance
MMI offers free credit counseling and debt repayment solutions to help consumers create realistic, sustainable plans.
“Debt doesn’t mean failure, it means it’s time for a plan,” Nitzsche said. “And the earlier people seek help, the more options they have.”
About Money Management International (MMI)
For over 65 years, Money Management International (MMI) has been at the forefront of financial health solutions, helping individuals and families break free from debt and build a secure financial future. As a trusted nonprofit leader, MMI is dedicated to transforming how Americans navigate financial challenges by providing expert guidance, innovative programs, and culturally relevant financial education. Recognized by major financial institutions and media outlets, MMI’s award-winning services support long-term financial stability and success. Learn more at MoneyManagement.org
For reporters looking to interview people who have overcome debt, MMI supports a network of more than 500 peer advocates in all 50 states who have volunteered to share their experiences with the media in the hopes of inspiring others faced with financial challenges. Collectively, these advocates have paid off more than $22 million in debt and now serve as MMI ambassadors. Their stories are featured on MMI’s podcast, Long Story $hort.
Media Contacts
Thomas Nitzsche, Vice President of Public Relations
404.490.2227
Thomas.Nitzsche@MoneyManagement.org
Jackie Callaway
813-610-8241
Jackie.Callaway@moneymanagement.org
Thomas Nitzsche Money Management International 404.490.2227 Thomas.Nitzsche@MoneyManagement.org Jackie Callaway Money Management International 813.610.8241 Jackie.Callaway@MoneyManagement.org
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