Millennial Money Crunch: Nonprofit MMI Warns of Debt Surge as Inflation and Tariff Pressures Mount

“The increasing number of young adults reaching out for financial counseling is a clear indicator of the mounting economic pressures they face.” - Thomas Nitzsche, VP of Public Relations, MMI

/EIN News/ -- STAFFORD, Texas, April 22, 2025 (GLOBE NEWSWIRE) -- Money Management International (MMI), a leading nonprofit organization dedicated to helping Americans overcome financial challenges, reports a significant uptick in millennials seeking credit counseling services. This trend emerges as escalating tariff disputes threaten to exacerbate inflation and further strain household finances.

“The increasing number of young adults reaching out for financial counseling and debt management assistance is a clear indicator of the mounting economic pressures they face,” said Thomas Nitzsche, Vice President of Public Relations. “With the potential for rising prices due to ongoing tariff battles, it’s imperative that consumers take proactive steps to manage their debt and safeguard their financial futures.”

Key Findings

Notable Month-over-Month Growth in March 2025: 

• Overall counseling volume increased by 9% across all age groups.
• Clients aged 21-30 experienced a 19% surge.
• Clients aged 31-40 saw a 17% lift. 

Q1 2025 Year-over-Year Comparison: 

• Clients aged 21-30 exhibited a 14% increase in counseling volume at MMI.
• Clients aged 41-50 are carrying the highest level of unsecured debt, averaging $36,348, a 10% year-over-year increase. 

Millennials Facing Mounting Financial Challenges

The data underscores a troubling trend among millennials, who are increasingly turning to credit cards to cover everyday expenses. MMI’s ‘Do Debt Differently’ initiative highlights that millennials now represent 43% of all new debt counseling clients at MMI, with average clients’ total unsecured debt balances reaching $30,000. Additionally, 66% of millennial clients are renters, making them particularly vulnerable to housing cost fluctuations.

“Millennials are at a critical financial crossroads,” noted Nitzsche. “The combination of rising debt levels and potential inflationary pressures from tariffs could create a perfect storm, making it even more challenging for them to achieve financial stability.”

Tariff Disputes and Inflation Concerns

Recent developments in Washington have heightened concerns about inflation. In March 2025, the U.S. imposed significant tariffs on imports from China, Canada, and Mexico, leading to retaliatory measures and fears of a global trade war. Economists warn that these tariffs could drive up consumer prices, with projections of inflation peaking at 4%, double the Federal Reserve’s target.

“While recent reports indicate a temporary cooling of inflation due to drops in energy prices, the underlying threat from ongoing tariff disputes remains,” explained Nitzsche. “Consumers should brace for potential price increases in essential goods and services, which could further impact their financial well-being.”

MMI’s Commitment to Financial Wellness

In response to these challenges, MMI continues to offer comprehensive financial counseling services aimed at empowering individuals to take control of their finances. Through personalized budgeting strategies, debt repayment plans, and financial education, MMI provides clients with the tools necessary to navigate economic uncertainties.

“Our goal is to equip consumers, especially young adults, with the knowledge and resources they need to manage their debt effectively,” said Nitzsche. “By addressing these issues proactively, we can help mitigate the potential impact of rising prices and support our clients in achieving lasting financial health.” 

About MMI

For over 65 years, Money Management International (MMI) has been at the forefront of financial health solutions, helping Americans take control of their finances and break free from debt. As a trusted nonprofit, MMI is committed to changing how America overcomes financial challenges by offering expert, culturally relevant guidance. Recognized by major financial institutions and media outlets, MMI’s award-winning programs support financial stability and long-term success. Learn more at MoneyManagement.org. 

Media Contacts: 

Thomas Nitzsche
Vice President of Public Relations
404.490.2227 
Thomas.Nitzsche@MoneyManagement.org

Jackie Callaway
Media Relations
813.610.8241 
Jackie.Callaway@MoneyManagement.org

Lori Geary
404.551.2151 
lgeary@lexiconstrategies.com