STAFFORD, Texas, Nov. 06, 2023 (GLOBE NEWSWIRE) -- In a startling revelation, Money Management International (MMI), a leading nonprofit financial counseling provider, has reported a staggering 90% increase in the number of clients seeking delinquent mortgage counseling in 2023 compared to the same period in the previous year. This alarming surge is particularly pronounced among clients in their thirties.
Additionally, MMI found that housing default counseling clients in 2023 are burdened with an average unsecured debt 12% higher than clients in 2022. This rises to a concerning 24% increase for clients in their thirties. Furthermore, clients in 2023 are grappling with average non-mortgage secured debt 10% higher than in 2022.
As the economy adjusts to post-pandemic realities, the support programs that once buoyed homeowners, such as COVID forbearances and the Homeowners’ Assistance Fund, have mostly drawn to an end. Consequently, consumers facing mortgage payment challenges today have fewer lifelines compared to previous years.
The impact of rising interest rates is further exacerbating the situation. Previously manageable levels of unsecured debt have suddenly become unmanageable for many consumers, affecting their overall financial budgets, including their ability to meet mortgage obligations.
"The thirties are a pivotal financial decade for most individuals, often marked by the responsibilities of parenthood, including expenses such as daycare, tutoring, sports, and clubs, which have all surged in cost since the pandemic," said Kate Bulger, Vice President at MMI.
"This is also the decade when many of us make our first home purchase. However, between January 2019 and December 2022, the median home price rose by almost 52%. The disproportionate increase in home prices compared to income levels places added pressure on the budgets of those in their thirties, especially when unexpected setbacks occur. Additionally, this demographic carries the highest student loan debt burden, with an average balance of around $42,000, further straining their finances as student loan payments resume,” added Bulger.
Notably, these trends are contributing to significantly higher levels of financial stress overall. Since 2020, the percentage of individuals reporting high or very high levels of financial stress has risen by 18%.
One intervention that has proven to help reduce financial stress is financial counseling. After receiving counseling services from MMI, less than 10% of clients report experiencing high levels of financial stress.
"Our mission at MMI is to provide crucial financial counseling and support to individuals facing these challenges,” Bulger added. “We remain committed to helping our clients navigate their financial difficulties, offering solutions, and easing the burden of financial stress during these challenging times."
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 over 300 clients from across the country who are willing to share their experiences with the media, in the hopes of inspiring others challenged with debt. Our peer advocates have paid off $14 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 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
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