ORLANDO, Fla. – As the cost of living continues to soar, millions of Americans are grappling with the heavy burden of credit card debt.
Recent data from the Federal Reserve reveals credit card balances have reached an alarming $1.14 trillion in the U.S., marking a record high.
“It’s a snowball,” recalled Brian Hodge. “A slow roll.”
Hodge, a network engineer for Epic Universe, struggled to make ends meet after maxing out his credit card. Before he knew it, the young father had racked up $26,000 in debt, some of which was due to the cost of health care.
“We had several surgeries in our household,” he explained. “Helping friends and family, the spending, the trips, the vacations, and then it all comes together and suddenly you’re underwater.”
Like countless others, the debt realization affected Hodge’s mental health.
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“It’s going to sound dark, but it’s like staring down the barrel of a gun,” he said. “You feel like there’s no path forward.”
That’s when he contacted Money Management International (MMI), a nonprofit organization dedicated to assisting individuals in overcoming financial challenges. News 6 spoke with Emmaneul Rivero, a senior director of counseling at MMI, about the debt crisis facing Americans.
“It’s very alarming,” he said. “Folks are using their credit cards now for all sorts of things they didn’t have to use it for before.”
MMI collaborates with creditors to negotiate lower interest rates and creates monthly payment plans that fit a client’s budget. The company has counseled more than 2.5 million Americans.
“We normally get folks out of debt between about 3 to 5 years or so because the payment that you send to us on a monthly basis, we disperse or distribute to your creditors on a monthly basis,” Rivero explained. “But those balances go down a lot more effectively because you’re getting that lower interest rate.”
Data from MMI found a 78% rise in new clients from Florida year-over-year. Nationally, the non-profit has seen a 53% increase in consumers seeking relief.
“It’s really hard to admit (that you’re in debt),” Rivero said. “What we’re looking for is ways to remove the stigma, remove the shame barrier, so that as many consumers who need help as possible, get the help they need.”
With MMI’s guidance and a commitment to hard work and discipline, Hodge successfully eliminated his debt after four years in the program.
“Everybody needs help sometimes,” he said. “(Life is) a lot better. I can actually enjoy some things, like going to Disney occasionally.”
If you’re interested in seeing whether MMI can help your financial situation, head to their website.