Credit Counseling Surge at Money Management International Shows Housing Cost Hotspots
STAFFORD, Texas, Nov. 11, 2024 (GLOBE NEWSWIRE) -- Money Management International (MMI) reports an alarming trend of rising housing costs observed during a recent surge in credit counseling demand across the United States, with Miami, Tampa, and Portland leading in cost increases among Americans seeking assistance. According to MMI’s data, new clients face expenses that are outpacing income growth, pushing them to seek professional help in managing debt and stabilizing their financial stability.
- Homeowners seeking credit counseling from MMI in 2024 face average housing costs 36% higher compared to four years ago and carry 21% more unsecured debt than in 2020, now averaging $41,000.
- Renters seeking credit counseling from MMI in 2024 are contending with a 44% rise in rent payments and 26% increase in total unsecured debt since 2020, now averaging $24,000.
Since 2020, housing costs for clients seeking credit counseling from MMI have jumped 60% in the Miami-Fort Lauderdale MSA, 57% in Tampa, and 52% in Portland.
MMI has experienced a 69% spike in credit counseling requests from the Miami area this year, with new clients spending 40% of their income towards housing, highlighting the link between rising expenses and increased financial distress. Nationally, demand for credit counseling from MMI is up 42% in 2024 year-over-year.
“These numbers reveal the crisis in housing affordability that is hitting household budgets hard,” said Thomas Nitzsche, Vice President of Public Relations at MMI. “As rent and mortgage costs continue to rise, we’re seeing more people turn to MMI for support. Among them, we are seeing higher expenses, more debt, and larger monthly budget deficits despite increasing income.”
Other Regions of Concern
While new MMI clients from Miami, Tampa, and Portland report the highest increases in housing costs, MMI data shows other regions also struggling under the weight of escalating housing cost and unsecured debt:
- San Francisco MSA: Bay-area homeowners seeking financial counseling from MMI in 2024 spend 40% of their gross income on housing and carry unsecured debt levels well above the national average, with new clients showing an average of $56,000.
- Los Angeles, Seattle, and New York MSAs: In these three metro areas, both renters and homeowners seeking financial counseling from MMI in 2024 face higher than average housing expenses and carry above-average unsecured debt.
MMI’s data reveals a national trend of rising housing expenses correlated with increased financial hardship. In some metro areas, renters are now dedicating a larger share of their income to housing costs than they did just a few years ago.
Real-Life Struggles
A recent Harris Poll survey conducted on behalf of MMI revealed that over 4 in 5 Americans with credit card debt (83%) have struggled to make ends meet this year. Among them, 92% have made changes to their spending habits as a result, primarily by cutting back on dining out and entertainment (54%). When asked about the most difficult change they’ve had to make, a 25-year-old female respondent from the survey shared, “I have to prioritize bills and do not have enough leftover money for anything I enjoy.”
With more households under pressure from high expenses, MMI remains committed to delivering critical resources and personalized guidance to help individuals reduce costs, manage debt, and navigate financial challenges.
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 information on the MMI Consumer Distress Dashboard or to schedule an interview with MMI experts and debt management clients, please contact:
Thomas Nitzsche, 404.490.2227, Thomas.Nitzsche@MoneyManagement.org
Lori Geary, 404.551.2151, lgeary@lexiconstrategies.com
Attachment
Thomas Nitzsche Money Management International 404.490.2227 Thomas.Nitzsche@MoneyManagement.org Lori Geary Lexicon Strategies 404.551.2151 lgeary@lexiconstrategies.com
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