New Consolidated Credit survey: 1 in 5 Americans wait until a “last resort” to tackle record credit card debt
SOURCE Consolidated Credit
FORT LAUDERDALE, Florida, June 3, 2026 /PRNewswire-HISPANIC PR WIRE/ — Consolidated Credit reveals a dangerous contradiction: consumers have historic levels of debt, but mistakenly believe it is under control.
A study of 1,005 American adults reveals that 78% of respondents have credit card debt, but many hesitate to seek professional help until they reach a breaking point. This highlights a trend of ” perceived manageability .” Thirty percent of respondents report balances of $10,000 or more; however, most describe their debt as being under control.
“A dangerous game of financial musical chairs is taking place. People feel their debt is under control because they’re making minimum monthly payments , but as our minimum payment calculator illustrates, high interest rates are silently eating away at their income. Waiting until you’re in a financial crisis to get help is like waiting until your engine blows up to change the oil. The sooner you address the problem, the easier and cheaper it will be to fix,” says April Lewis-Parks , Director of Financial Education at Consolidated Credit.
With high interest rates, a “wait and see” approach costs consumers thousands in compound interest.
- 20% of those surveyed 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.
The awareness and trust gap clashes
Most respondents consider nonprofit agencies trustworthy, but they still rely on web searches or personal networks for advice. Many consumers confuse debt management programs (DMPs) with debt settlement or assume that enrollment causes credit damage, which distorts the critical role of nonprofit credit counseling. While familiarity with debt relief options, such as consolidation loans and bankruptcy, is high, DMPs remain misunderstood.
- 42% of those surveyed have taken the step of speaking with a credit advisor
- 39% have enrolled in a DMP, demonstrating that when advice is provided, most people find a way out of high-interest debt.
- 42% of respondents with more than $10,000 in debt say they would seek a consolidation loan, while only 23% would turn to a Debt Management Program.
To close this gap, it is vital to understand the structural mechanics of how a DMP actually protects and helps the consumer:
- Main function: Certified credit counselors work directly with creditors on behalf of the consumer to consolidate multiple credit card accounts into a single, structured monthly payment administered by the non-profit organization.
- Interest rate and timeline advantage: Direct promotion reduces high interest rates (often 20% or more) from 0% to 11% for those who qualify. By lowering interest rates, the program compresses the repayment term to three to five years, compared to the more than 20 years needed to pay off identical balances by making only standard minimum payments.
“We need to change how consumers define financial hardship. 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 exceeds 30%, or if you find yourself relying on credit to cover basic living expenses, your financial foundation is already compromised,” advises Lewis-Parks.
To close this educational gap and help consumers address warning signs before reaching a financial breaking point, Consolidated Credit has launched a free educational resource titled ” 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. Learn more at ConsolidatedCredit.org.
