Debt Management Plan Enrollment Hits 15-Year High
Rising living costs drive more households to seek plans that cut average interest rates from 28% to under 8%.
Updated on Oct. 26, 2026 in Debt Relief
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As of September 2026, Money Management International reports overseeing over $1 billion in consumer debt amid record enrollment levels. Households are increasingly turning to debt management plans to navigate rising costs and high interest rates.
Why it matters
Stubborn inflation has pushed living expenses up 30% over the last seven years, outpacing income growth and forcing more families to seek help for unsecured debts averaging over $40,000. These plans help by lowering interest rates that average 28% for enrollees to under 8%.
Money Management International manages over $1 billion in client debt for 60,000 active plans, with new clients entering with an average credit card interest rate of 28%. Enrollment for these plans, which typically last four to five years, reached an all-time high in September 2026.
The players
Money Management International
A nonprofit counseling organization that provides budgeting advice and debt management programs to help households reduce high-interest credit card debt.
The details
Money Management International works with creditors to establish repayment programs that consolidate debt and reduce interest rates to under 8% for participants. By lowering these interest costs, the plans allow households to pay down principal balances more effectively over a four to five-year period. This intervention is often sought as a response to the cumulative impact of a 30% rise in living expenses over the last seven years.
Timeline
The financial crisis occurred between 2007 and 2009.
Debt overseen previously exceeded $1 billion in 2013.
The previous high for active debt management plans occurred in 2017.
Gen Z client growth is measured against a 2025 baseline.
Counseling volume increased 9.5% through September 2026.
Money Landscape
The current demand for debt relief services sits at historic highs, mirroring the elevated pressures on household budgets seen during the 2007-2009 financial crisis. This reflects a multi-year trend where rising living expenses have increasingly strained middle-income balance sheets.
If you are struggling to make payments on credit card debt carrying interest rates near 28%, contact a nonprofit credit counselor to see if a debt management plan is appropriate for your budget. Always discuss the long-term impact on your credit and budget with a qualified financial professional before entering any repayment agreement.
The takeaway
The record rise in debt management enrollment serves as a signal of widespread pressure on household cash flow. Review your monthly budget and interest rates now to identify if your debt is becoming unsustainable, and speak with a qualified financial professional to weigh all available options.
Further reading
For more on managing high-interest obligations, see our guide to Debt Relief.
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Is keeping up with everyday expenses becoming harder for your household than it was last year?
