STAFFORD, Texas, June 07, 2023 (GLOBE NEWSWIRE) -- Money Management International (MMI) internal data shows an increase in young consumers reaching out to the nonprofit for help paying down debt.
MMI has seen an 81% increase in clients aged 18-29 in the first quarter of 2023 compared to the same timeframe last year. This follows a 84% year-over-year increase in the same age group observed in 2022.
MMI’s data follows a trend the New York Fed has reported, which shows more significant distress among younger borrowers.
Young adults, especially those in their 20s, may be more likely to pile on significant debt as inflation continues to grip the nation. This age group also faces the challenges of college loan repayment and lower-paying first jobs.
“Credit has been cheap for a long time, and suddenly, it’s just not,” said Kate Bulger, Vice President at MMI. “Budgets sneak up on people. It may be starting to catch up all at once, and student loans will add to the squeeze as payments for millions of young borrowers soon resume, especially if forgiveness is struck down.”
Bulger said other factors are at play, including rent. “Younger people are much more likely to be renting, and rents have been booming. It’s typically a young person’s biggest expense and one they don’t have much control over.”
“Young professionals are increasingly being expected to return to their offices,” added Bulger. “They may be experiencing the added cost of a commute along with daycare. These take a serious bite out of the budget.”
Mayra Jaramillo, a 28 year-old mother of two from Chicago, knows the scenario all too well. She and her spouse recently completed a debt management plan from MMI, paying off more than $35,000 in debt.
"My husband and I needed to pay things, and credit was the easiest way,” said Jaramillo. “We just let it pile up and didn't take into account the APR. The interest rates really hurt us because we were making payments, but the bills weren't going down."
MMI helped Jaramillo come up with a budget, reduce their rates, and consolidate their credit card payments into one. "I would say just to stick to a budget,” added Jaramillo. “It's OK to miss out on some stuff."
About MMI
Money Management International (MMI) is changing how America overcomes financial challenges. MMI helps create, restore, and maintain a life of financial wellness through empowered choices. For 65 years, our clients have achieved financial confidence through nonprofit programs that educate, motivate, and liberate. MMI inspires action by delivering expert professional guidance and timely solutions aligned with our client's goals. Experiencing a financial challenge? Find your solution 24/7 at 866.864.8995 and MoneyManagement.org.
For reporters looking to interview real people for stories, MMI has created a group of nearly 300 clients from across the country who are willing to share their experiences with the media, in the hopes of helping others challenged with debt. Our peer advocates have paid off $12 million of debt and now serve as MMI ambassadors. Hear from them on MMI’s podcast, Long Story $hort.
To schedule an interview with MMI’s Kate Bulger, MMI client Mayra Jaramillo, or any of our MMI Peer Advocates, please contact:
Thomas Nitzsche, 404.490.2227, Thomas.Nitzsche@MoneyManagement.org
Lori Geary, 404.551.2151, lgeary@lexiconstrategies.com
