Increase in Demand for Nonprofit Financial Counseling and Debt Management Assistance in 2024: MMI Reports Rise in Client Numbers and Unsecured Debt Levels

The financial landscape in the United States is shifting, with more individuals and families seeking assistance for managing their debts. Money Management International (MMI) has reported a significant increase in the number of clients seeking nonprofit financial counseling and debt management assistance in the first half of 2024.

According to MMI’s data, there has been a 52% rise in new clients compared to the same period last year, with new clients carrying an average unsecured debt of $28,000, a 9% increase from 2023. Several states have seen notable increases in counseling volume and average debt levels.

In Florida, there was a remarkable 78% increase in new clients, with unsecured debt growing by 8%, just below the national average. This surge highlights the financial challenges faced by residents in the state, particularly in housing and home-related costs.

Minnesota saw counseling volume increase by 56%, with clients carrying unsecured debts 25% higher than the previous year, exceeding the national average debt among new clients. Reports earlier this year also indicated rising debt and bankruptcy filings in the state.

Alaska reported a 14% increase in counseling volume, with new clients reporting average unsecured debts 59% higher than the previous year.

Other states that exhibited increases in counseling growth and unsecured debt above the national averages include Washington, Arizona, New York, Michigan, Oklahoma, and New Jersey.

Kate Bulger, Vice President of Business Development at MMI, emphasized the escalating financial pressures on individuals and families across the nation. MMI remains committed to providing support and guidance to help clients manage their debts and regain financial stability.

MMI’s Consumer Distress Dashboard, launched in 2024, aggregates data from thousands of Americans counseled by MMI to offer valuable insights into consumer financial health. The organization has been at the forefront of financial health solutions for over 65 years, dedicated to changing how America overcomes financial challenges.

For further information about the Consumer Distress Dashboard or to speak with MMI experts and clients, please contact Thomas Nitzsche at 404.490.2227 or [email protected], and Lori Geary at 404.551.2151 or [email protected].