Nonprofit Debt Counseling Sees Surge as Millennials Face Silent Financial Crisis

Millennials, the largest generation in the workforce, are quietly drowning in debt while often maintaining the appearance of financial stability and success on social media. Money Management International (MMI), one of the nation’s largest nonprofit credit counseling agencies, reported a 35% annual increase in new clients seeking financial help in 2024. This rate jumps to 48% for those aged 21 to 30.

According to MMI, the debt loads for those in their 20s, while starting smaller than older generations, are climbing at an alarming 12% annual rate, rising to $18,254 in 2024.

The Scope of a Growing Crisis

Total U.S. household debt has ballooned to $18.39 trillion in the second quarter of 2025, according to the Federal Reserve, with credit card debt alone reaching $1.21 trillion—up almost 6% from the previous year. Behind these trillion-dollar figures lie millions of individual struggles, particularly among millennials who carry the weight of multiple financial burdens simultaneously. 

While the overall student debt stands at $1.64 trillion, with 10.2% of loans now 90 or more days delinquent, millennials bear a disproportionate share of this burden. According to the Education Data Initiative, 18.5 million millennials have outstanding student loans—almost 40% of all borrowers—with an average balance of $40,438, about 7% higher than the national average.

This has affected the affordability of housing, which is at the forefront of this generation’s mind. Northwestern Mutual found that 31% of millennials cite buying a house as their biggest affordability concern, far outpacing concerns about retirement. For those who do manage to buy, MMI’s data on those it counsels shows that debt-burdened homeowners now pay an average of $1,900 per month, while renters have $1,300 in monthly costs—expenses that have increased by 11% year-over-year.

All told, mounting debt and expenses have altered young people’s life plans: 84% of millennials with student debt report that they’ve delayed major life investments, such as buying a home or starting a business, because of their loans.

Northwestern Mutual’s data shows that 34% of millennials expect to buy homes, have children, and get married later in life than previous generations. The traditional milestones of American life haven’t disappeared, but for many, they’ve been pushed into an increasingly uncertain future.

Why Nonprofits See the Surge First

Younger adults often delay or avoid seeking help with debt because of shame, fear of judgment, or the belief that needing help is a personal failure. A recent study found that people hiding their financial struggles fear a social stigma, even when free help is available.

Nonprofit credit counseling agencies are working to get past such fears, offering free or low-cost services that people typically seek before considering more drastic measures like bankruptcy. Unlike for-profit debt settlement companies that charge costly upfront fees, nonprofits like MMI and the National Foundation for Credit Counseling offer free consultations and low-cost services funded by creditor partnerships and grants.

Nonprofit counseling agencies typically offer the following services:

• Free initial consultations and budget counseling
• Help with debt management plans that consolidate multiple credit card payments into one monthly payment
• Negotiated interest rate cuts with creditors
• Financial education workshops and resources
• Housing counseling for mortgage difficulties

The Bottom Line

Total student loan and credit card debt have hit record highs while millennials face a triple crisis: rising housing costs, crushing student loan debt, and wages that often haven’t kept pace with inflation. Nonprofit counseling agencies can help by offering debt management plans, budget counseling, and help with loan forgiveness programs. For those struggling with debt, these free resources can provide a pathway from crisis to stability.