STAFFORD, Texas, Feb. 03, 2025 (GLOBE NEWSWIRE) — A new wave of financial hardships is gripping America’s largest adult generation — Millennials — as an alarming rise in debt, housing costs, and reliance on credit cards threatens their financial stability. Today, the nonprofit debt counseling agency Money Management International (MMI) announced its ‘Do Debt Differently’ initiative, aimed at easing this crisis while unveiling striking new data on the scale of the problem.
“Credit card debt and the interest rates have a stranglehold over the country right now,” said Jim Triggs, President and CEO at MMI. “Pre-pandemic, millennials did a good job managing their debt, but once the pandemic happened and inflation became an issue, costs went through the roof, and they started getting into credit card debt.”
“Our latest data shows Millennials urgently need better tools to stabilize their finances,” added Thomas Nitzsche, VP of Public Relations at MMI. “Many are using credit cards just to get by—covering basics like groceries and bills. ‘Do Debt Differently’ is our commitment to guiding this generation toward a debt-free future, one manageable payment at a time.”
Credit Cards as a Crutch
- Escalating Reliance: Millennials now represent 43% of all new debt counseling clients at MMI, leading all other generations.
- Record-High Unsecured Debt: The average Millennial debt balance among MMI clients climbed to $30,000 in 2024.
- Renters at Risk: 66% of Millennial clients at MMI are renters—significantly more than older generations. In high-cost states like California, nearly 79% of Millennials rent, a stark reflection of tight housing affordability.
- Mounting Auto Loans: Millennial clients also carry some of the highest auto loan balances of any generation, topping $28,000 in many states and exceeding $32,000 in places like Texas and Washington.
- Cause of Financial Hardship: 47% of Millennial clients at MMI report facing financial hardship due to credit card use, more frequently than older generations (42%).
Nine States in Focus
MMI’s data reveals a clear pattern of surging demand and debt loads among Millennial clients in California, Florida, Texas, Georgia, New Jersey, Washington, Arizona, Massachusetts, and Michigan—states that already grapple with escalating housing costs and consumer debt.
Above-Average Growth: Florida saw a 41% year-over-year increase from 2023 to 2024 in new Millennial clients, while states like New Jersey and Massachusetts also reported 40% gains among this age group.
High Debt Loads: For the Millennial homeowners counseled by MMI in Washington and California, for example, mortgage balances average nearly $500,000, among the highest nationwide. Meanwhile, New Jersey tops the charts with $34,600 in average unsecured debt held by Millennials counseled by MMI—well above the national average.
Cost-of-Living Squeeze: Across these nine hotspots, rising rent, spiking mortgage payments, and ballooning auto loans have created perfect conditions for a growing financial storm.
Do Debt Differently: A Lifeline for Millennials
The ‘Do Debt Differently’ campaign highlights the habits and values found to be most relevant to Millennials faced with financial challenges. Four creative videos focus on a Millennial couple “doom scrolling” as they navigate debt. They also underscore the most important benefits of working with MMI, as determined by a January 2025 survey of nearly 500 Millennials in debt:
- Fast-Tracked Repayment – Repay credit card debt up to 7x faster than going it alone.
- Single Payment Convenience – Consolidate multiple bills into one manageable payment.
- Credit Score Boost – Potential to raise credit scores by 80+ points.
- Achievable Timelines – Become debt-free in as little as 24 months.
This targeted approach will appear in highly focused digital and streaming advertisements across the nine included states. It will be supported by MMI’s award-winning public engagement strategy, placing MMI Peer Advocates in the media to raise awareness, humanize their challenges, and demonstrate how MMI helped them ‘Do Debt Differently’.
About MMI
Money Management International (MMI) has been at the forefront of financial health solutions for over 65 years. As a leading nonprofit, 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 award-winning programs help individuals reach their financial goals and foster a life of financial wellness. Learn more at MoneyManagement.org.
- Millennial Debt Crisis: A Call to Action. ‘Do Debt Differently’ screenshot from campaign.
- MMI Counselors: Guiding Financial Wellness