New Consolidated Credit Survey: 1 in 5 Americans Wait Until a "Last Resort" to Address Record-High Credit Card Debt

While 70% of consumers trust nonprofit credit counseling, nearly half are unaware of the most effective solution for the $1.3 trillion national debt crisis: The Debt Management Program.

FORT LAUDERDALE, Fla., June 2, 2026 /PRNewswire/ -- Consolidated Credit reveals a perilous contradiction: consumers are carrying historic levels of debt but mistakenly believe it is under control.

The study of 1,005 U.S. adults reveals 78% of respondents are carrying credit card debt, but many are hesitant to seek professional help until reaching a breaking point. This highlights a trend of "perceived manageability."  Thirty percent of respondents report balances of $10,000 or more, yet most describe their debt as under control.

"There is a dangerous game of financial musical chairs happening. People feel like their debt is under control because they are making minimum monthly payments, but as our minimum payment calculator illustrates, high interest rates are quietly eating away at their income. Waiting until you are in a financial crisis to get help is like waiting until your engine blows up to change the oil. The earlier you address the problem, the easier and cheaper it is to fix," says April Lewis-Parks, Director of Financial Education at Consolidated Credit.

With elevated interest rates, a "wait and see" approach costs consumers thousands in compounding interest.

• 20% of respondents admit they would delay seeking professional help until it is a last resort
• Among those with $10,000 or more in credit card debt, 15% say they would wait until the last minute to seek help, while 2% say they would never seek help

Awareness and Trust Gap Collide

Most respondents view nonprofit agencies as trustworthy, but they still rely on web searches or personal networks for advice. Many consumers confuse DMPs with debt settlement or assume enrollment causes credit damage, distorting the critical role of nonprofit credit counseling. While familiarity with debt relief options like consolidation loans and bankruptcy is high, DMPs remain misunderstood.

• 42% of respondents have taken the step to speak with a credit counselor
• 39% have enrolled in a DMP, showing that when counseling is provided most people discover a pathway out of high-interest rate debt
• 42% of respondents with $10,000+ in debt say they would look into a consolidation loan, while only 23% would turn to a Debt Management Program

To bridge this gap, it is vital to understand the structural mechanics of how a DMP actually protects and assists the consumer:

• Core Function: Certified credit counselors work directly with creditors on the consumer's behalf to consolidate multiple credit card accounts into a single, structured monthly payment managed by the nonprofit.
• Interest & Timeline Advantage: Direct advocacy reduces high interest rates (often 20% or higher) down to 0% to 11% for those who qualify. By cutting interest, the program compresses the repayment timeline to three to five years, compared to the 20-plus years it takes to pay off identical balances making only standard minimum payments.

"We need to shift how consumers define financial distress. True debt management isn't just about avoiding default today; it's about protecting your financial mobility for tomorrow. If your debt-to-income ratio is creeping past 30%, or if you find yourself relying on credit to cover basic living expenses, your financial foundation is already compromised," advises Lewis-Parks.

To bridge this educational gap and help consumers address warning signs before hitting a financial breaking point, Consolidated Credit has released a free educational resource titled the "2026 Money Confidence Roadmap," which tracks seasonal financial milestones.

About: Consolidated Credit is a national nonprofit financial advocacy organization that has helped more than 10 million people overcome debt and financial challenges over the past 33 years. Through comprehensive financial education, personalized credit counseling, and structured debt management programs, Consolidated Credit empowers families across the United States to end financial crises and build long-term stability. Learn more at ConsolidatedCredit.org.

SOURCE Consolidated Credit