A national survey from Consolidated Credit, a nonprofit financial education organization, has found that American consumers often delay seeking debt help until their balances reach five figures, even as total U.S. credit card debt climbs to approximately $1.25 trillion. The survey of 1,005 U.S. adults indicates that 78% carry credit card debt, with nearly 30% owing $10,000 or more, yet many still consider their debt manageable.
The findings come from data collected by Consolidated Credit and underscore a disconnect between rising debt levels and consumer understanding of available solutions. According to the survey, awareness of debt relief options varies, with debt consolidation loans and bankruptcy widely recognized, but nearly half of respondents unaware that nonprofit organizations offer Debt Management Programs (DMPs). Only 37% reported familiarity with DMPs overall.
“Many consumers don’t seek help until they feel they’ve exhausted every other option,” said Roxanne Grant, NFCC Certified Credit Counselor at Consolidated Credit. “The reality is that the earlier someone addresses their debt, the more options they often have available to regain control and avoid long-term financial damage.”
The survey also revealed that about 1 in 5 respondents would delay seeking help until debt becomes a last resort, and 6% said they would never seek professional debt assistance. Only 39% had ever enrolled in a Debt Management Program. Many consumers begin by researching solutions online or consulting with family and friends before contacting a credit counselor from a non-profit agency.
Consolidated Credit notes that Debt Management Programs offered through nonprofit credit counseling agencies are designed to help consumers consolidate unsecured debt into one affordable monthly payment while potentially reducing interest rates and fees. Program fees are capped nationwide and often significantly lower than consumers expect.
Misconceptions about how debt relief programs affect credit scores, repayment timelines, and monthly costs contribute to hesitation, even though 70% of participants said they trust nonprofit credit counseling agencies. The survey suggests that greater consumer education may be necessary to help Americans understand when and how to seek trustworthy guidance before debt reaches crisis levels.
For more information about debt management solutions or to speak with a certified credit counselor, visit Online counselors.
