STAFFORD, Texas, Nov. 13, 2025 (GLOBE NEWSWIRE) — A new analysis from nonprofit Money Management International (MMI) reveals that younger Americans seeking financial counseling have experienced the sharpest surge in unsecured debt since 2020, more than doubling over five years. During the same timeframe, MMI recorded a shocking five-fold increase in counseling volume among the youngest borrowers, signaling a disproportionate surge in financial stress.
The findings suggest that Generation Z and young millennials are being squeezed by high costs, rising borrowing rates, and limited access to affordable credit, while increasingly turning to online counseling for help.
“Many younger adults are entering the workforce under extraordinary financial pressure, where every swipe, tap, or click carries more long-term risk than before,” said Jim Triggs, President and CEO at MMI. “What’s encouraging is that this same generation is proactively seeking help through digital tools and online counseling to break free from those debt cycles.”
Between 2020 and 2025, clients aged 21 to 30 experienced a 106% increase in unsecured debt and 505% increase in financial counseling volume, the sharpest increases among any age group. Overall increases during this timeframe were 38% and 77%, respectively.
| Age Group | Unsecured Debt | Counseling Volume | ||||
| 2020 | 2025 | % Increase | 2020 | 2025 | % Increase | |
| 21-30 | $9,300 | $19,200 | 106% | 1,592 | 9,632 | 505% |
| 31-40 | $18,700 | $31,000 | 66% | 6,649 | 16,745 | 152% |
| 41-50 | $24,800 | $36,500 | 47% | 6,819 | 13,412 | 97% |
| 51-60 | $25,700 | $34,600 | 35% | 6,178 | 8,917 | 44% |
| 61-70 | $22,900 | $29,900 | 31% | 5,748 | 5,483 | -5% |
| 71+ | $20,900 | $26,700 | 28% | 5,763 | 3,641 | -37% |
| Total | $22,200 | $30,700 | 38% | 32,749 | 57,830 | 77% |
These surges among younger adults reflect a cycle of high living costs, limited savings, and elevated interest rates that compound existing credit challenges:
- Inflation and rising living costs have outpaced wage growth, especially for early-career workers
- Income instability and low savings have pushed younger adults toward heavier reliance on credit
- Lower credit scores and limited assets among younger borrowers translate into higher rates and fewer refinancing options, creating a credit score feedback loop: low score → high rate → higher utilization → lower score.
AI Referrals and Digital Counseling Drive Higher Engagement
MMI’s data also show that conversational AI platforms are reshaping how consumers find and access financial counseling. Over the past year, traffic to MMI’s website from ChatGPT and other AI platforms has steadily increased, recently surpassing 1,000 monthly active users:
- In October 2025, 30% of all online financial counseling sessions at MMI began from AI referrals
- Consumers referred by AI completed counseling at a rate 1.5 times higher than any other referral source
“AI has become an unexpected ally in connecting people to trusted financial help,” added Triggs. “The data shows that when consumers reach MMI through these channels, they are more likely to take action and complete the journey toward financial stability.”
About MMI
For over 65 years, Money Management International (MMI) has been at the forefront of financial health solutions, helping individuals and families break free from debt and build a secure financial future. As a trusted nonprofit leader, MMI is dedicated to transforming how Americans navigate financial challenges by providing expert guidance, innovative programs, and culturally relevant financial education. Recognized by major financial institutions and media outlets, MMI’s award-winning services support long-term financial stability and success. Learn more at MoneyManagement.org.
Media Contacts:
Thomas Nitzsche, VP of Public Relations
Phone: 404.490.2227
Email: [email protected]
Jackie Callaway, Media Relations
813.610.8241
Email: [email protected]
- Unsecured Debt and Counseling Volume By Age Group