Rising living costs are driving more Americans aged 30 to 45 to seek debt counselling, with enrolments in debt management plans reaching their highest in nearly a decade amid a sharp increase in unsecured debt.
More Americans are turning to debt counsellors, and the pressure is coming less from splurges than from the cost of staying afloat. Money Management International, a Texas-based nonprofit, said it counselled nearly 41,000 clients in the first half of 2026, about 10% more than a year earlier, as households struggled with higher bills for essentials such as car repairs and medical care. The organisation also said enrolment in its debt management plans reached its highest level in almost a decade.
Ted Rossman, a principal consumer finance analyst at Money Management International, said the pattern reflected a widening squeeze on everyday budgets. In comments reported by The New York Times, he said the biggest strain was often “practical stuff” rather than discretionary spending, with groceries and other basics rising faster than many incomes. The nonprofit said the typical client seeking help was in their 30s to mid-40s and carried about $41,000 in unsecured debt, meaning balances not backed by collateral such as a home or car.
The trend builds on signs of intensifying household strain earlier in the year. In April, Money Management International said average unsecured debt among its clients had climbed to more than $32,000 in the first quarter of 2026, up 10% from the same period a year earlier. In January, it said clients ended 2025 with average unsecured debt of $33,000 and a median balance of $24,000, underscoring how quickly borrowing pressures have accumulated.
Debt management plans, the service that has drawn more enrolments, are structured repayment programmes run by nonprofit credit counselling agencies. They typically combine multiple debts into one monthly payment and can lower interest rates, helping borrowers work towards repayment over three to five years. Advocates say they can simplify a difficult financial picture, though consumers are usually advised to review the costs, possible effects on credit and the reputation of any counselling agency before signing up.
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