National debt help group reports $1 billion in client liabilities

More than $1 billion in credit card and personal loan debt is currently held by clients of Money Management International. The national nonprofit reports this is the highest total it has recorded in 13 years. More than 60,000 people are currently enrolled in the organization’s debt management plans.

Ted Rossman, a representative for the group, attributes the rise to inflation, high interest rates, and the increasing cost of living. He noted that many families are placing everyday expenses such as groceries, gas, and car repairs on credit cards. Prices for these items have jumped by about 30% since 2019, straining household budgets even for those with steady jobs and raises.

Rossman said the current financial pressure echoes the period following the financial crisis. He urged people who are struggling to seek assistance rather than wait. He stated, “Definitely speak up, ask for help, don’t be ashamed.” He argued that the stigma surrounding credit card debt is often misplaced, as it frequently stems from practical needs like medical bills or car repairs rather than impulse purchases.

According to Rossman, half of all credit card holders carry debt from one month to the next. He suggested that breaking this pattern requires active steps. Options for managing the debt include connecting with a nonprofit credit counselor, taking out a personal loan, or using a zero percent balance transfer card to consolidate and pay down balances.

The organization continues to see a high volume of enrollments as costs for housing, medical care, and child care remain elevated. Rossman emphasized that the goal is to help clients regain control of their finances through structured repayment plans.