Record Numbers of Americans Seek Credit Counseling Amid Rising Debt
In the first half of 2026, a record number of Americans turned to debt consolidation, with an average balance of about $40,000, according to Money Management International (MMI), a major debt-management nonprofit. Nearly 15,000 new clients entered debt-management plans, marking the largest year-to-date figure since 2017. The nonprofit provided financial counseling to over 40,000 households, a 143% increase since 2021. The Federal Reserve Bank of New York reports that household debt nationwide has reached $18.8 trillion, the highest on record. Debt-collection lawsuits and personal bankruptcies are on the rise, while the personal saving rate has plummeted to 2.7%, the lowest since the 2022 inflation crisis. Rising consumer prices, up 27% since 2021, are straining household budgets, with credit card delinquencies reaching levels not seen since the Great Recession. 
