A new national survey from Consolidated Credit reveals that many Americans wait until their credit card debt reaches five figures before seeking professional help, underscoring a growing disconnect between rising debt levels and consumer awareness of debt relief options.
The survey of 1,005 U.S. adults found that 78% of respondents carry credit card debt, with nearly 30% owing $10,000 or more. Despite these balances, many consumers consider their debt manageable, which may delay action and early financial intervention. The findings come as total U.S. credit card debt has climbed to approximately $1.25 trillion, according to Federal Reserve Bank of New York data.
“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 revealed significant variation in awareness of debt relief solutions. While debt consolidation loans and bankruptcy are widely recognized, nearly half of respondents were unaware that nonprofit organizations offer Debt Management Programs (DMPs), and only 37% reported familiarity with DMPs overall. Many respondents also expressed concerns about how debt relief programs could affect their credit scores, repayment timelines, and monthly costs, contributing to hesitation despite 70% of participants saying they trust nonprofit credit counseling agencies.
Additional survey findings indicate that about 1 in 5 respondents would delay seeking help until debt becomes a last resort, while 6% stated they would never seek professional debt assistance. Only 39% said they had ever enrolled in a DMP. Many consumers begin by researching solutions online or consulting family and friends before contacting a credit counselor from a non-profit agency.
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. Consolidated Credit notes that program fees are capped nationwide and are often significantly lower than consumers expect.
The findings suggest that while financial stress continues to rise, 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, visit Consolidated Credit's online counselors.
