STAFFORD, Texas, Oct. 17, 2024 (GLOBE NEWSWIRE) -- According to a new survey conducted by The Harris Poll on behalf of Money Management International (MMI), over four in five Americans with credit card debt (83%) report having struggled to make ends meet this year, with inflation likely a primary factor. With the rising cost of living, MMI has seen a significant increase in the number of people seeking financial counseling and help with managing credit card debt.
The survey highlights that nearly three in four Americans with credit card debt (73%) point to inflation as one of the most significant pressures on their household budget. The cost of essential items like groceries and utilities has compounded financial stress for many households. New clients seeking financial counseling from MMI report an average household budget deficit of nearly $300 per month, a shortfall that has doubled in the last two years.
Real-Life Struggles
In our survey, those with credit card debt who made changes to finances to make ends meet shared some of their challenges. A 71-year-old male shared that one of the most difficult changes they’ve had to make is "trying to find the cheapest foods to prepare, especially meat proteins. I can't afford beef at all anymore, and I'm only buying the cheapest chicken and pork…I buy canned and frozen fruits and vegetables because they are cheaper than fresh.” Similarly, a 46-year-old female shared that one of the most difficult changes they’ve had to make is, "delaying a vacation and a new car purchase due to discretionary income reduction."
Surge in Credit Counseling
MMI's proprietary data reflects the growing financial stress among consumers. Through Q3 2024, MMI has experienced a 42% increase in new clients overall, with a 9% increase in the total unsecured debt they carry, compared to the first three quarters of 2023.
"Americans are clearly feeling the pinch of rising costs," said Thomas Nitzsche, Sr. Director of Media & Brand at MMI. "More people are turning to us for help as they try to keep up with everyday necessities like groceries and utility bills. We’re seeing firsthand how inflation is driving people to cut back on non-essential spending and seek out debt management solutions."
Demographic Insights: A Broadening Crisis
MMI's data reveals significant demographic shifts in those seeking assistance in 2024. Among the key findings:
- More younger Americans have sought out credit counseling, with disproportionate increases among those under 35 years of age.
- Hispanic Americans seeking credit counseling grew by 66%, while non-Hispanic clients increased by 40%.
- African Americans seeking help grew by 31%, while Asian Americans saw a 50% increase.
- The states of Arizona, Minnesota, New York, Oklahoma, and Texas have seen above-average increases in both counseling volume and unsecured debt loads.
- Puerto Rico has experienced a notable 125% surge in demand for credit counseling.
Changing Financial Habits
As Americans adjust to new financial realities, many are making difficult choices. Among those with credit card debt who have struggled financially, MMI’s survey with The Harris Poll found that more than nine in ten (92%) have made changes to their spending habits. The most common adjustment is reduced spending on dining out and/or entertainment (54%). Other shifts include cutting back on vacations or travel (48%), postponing major purchases (40%), and increasing use of credit cards (38%). Nearly one in three (30%) have reduced their savings or retirement contributions.
Survey Methodology
This survey was conducted online within the United States by The Harris Poll on behalf of MMI from October 3-7, 2024 among 2,085 U.S. adults ages 18 and older, among whom 1,049 have credit card debt. The sampling precision of Harris online polls is measured by using a Bayesian credible interval. For this study, the sample data is accurate to within +/- 2.5 percentage points using a 95% confidence level. This credible interval will be wider among subsets of the surveyed population of interest. For complete survey methodology, including weighting variables and subgroup sample sizes, please contact Thomas.Nitzsche@MoneyManagement.org.
About MMI
Money Management International (MMI) has been at the forefront of financial health solutions for over 65 years. As a leading nonprofit organization, MMI is dedicated to changing how America overcomes financial challenges by offering timely and expert guidance. Recognized by major financial organizations and media outlets, MMI’s programs help individuals reach their financial goals and foster a life of financial wellness. Learn more at MoneyManagement.org.
For reporters looking to interview real people for stories, MMI has created a group of nearly 500 clients from across the country who are willing to share their experiences with the media in the hopes of helping others challenged with debt. These peer advocates have paid off over $19 million of debt and now serve as MMI ambassadors. Hear from them on MMI’s podcast, Long Story $hort.
To schedule an interview with an MMI expert or debt management client, please contact:
Thomas Nitzsche, 404.490.2227, Thomas.Nitzsche@MoneyManagement.org
Lori Geary, 404.551.2151, lgeary@lexiconstrategies.com
