As Charge-Offs Rise, Nonprofit MMI Highlights Growing Demand for Debt Resolution Program

One in five consumers seeking counseling from MMI now carry at least one charged-off credit card balance, often hounded by collectors

STAFFORD, Texas, Aug. 13, 2025 (GLOBE NEWSWIRE) -- As consumer debt continues to climb and delinquencies rise, new data from Money Management International (MMI) shows that 20% of clients seeking financial counseling this year carry at least one charged-off credit card, with an average collection balance of $11,000 – a 31% increase from 2020. At the same time, FTC Consumer Sentinel Network data shows a recent surge in debt collection call complaints.

Among the top metro areas where MMI delivers services, several collection debt hotspots have emerged, including Atlanta, Philadelphia and Phoenix, where 23-26% of clients have at least one charged-off account. Additionally, at least eight states show above-average instances of collection debt among new clients, including: AZ, GA, MD, MI, NC, OH, PA, and TX.

To help meet this growing need, MMI is expanding access to its Debt Resolution Plan (DRP), a structured, nonprofit alternative to traditional debt settlement that helps people resolve severely delinquent or collection-stage debts. MMI also provides valuable education on consumers' rights when dealing with collectors, information on the statute of limitations on debt, and what it means to be “judgment-proof”.

"Many of the people reaching out to us feel overwhelmed and shut out of traditional repayment options," said Jim Triggs, President and CEO at MMI. "Debt resolution is designed to serve those clients, especially when their debts have already been charged off or sent to collections. It’s about meeting people where they are with practical, ethical support."

What Is a Charge-Off and Why Does It Matter?

A charge-off happens when a creditor gives up on collecting a debt after several months of missed payments. It’s typically reported as a loss on the lender’s books, but the borrower still owes the debt, which is often sold to a third-party debt collector. These accounts negatively impact consumers’ credit reports and carry significant stress for borrowers, as they are barraged by debt collection efforts.

While Debt Management Plans (DMPs) help save money through reduced interest rates, they work best for clients with debts that are current or in early stages of default, and may not be as effective or affordable to consumers with charged-off accounts. That’s where debt resolution comes in.

The Debt Resolution Plan: A New Path for a Growing Need

MMI’s Debt Resolution Plan offers a safe, affordable option for clients who are already behind on their debts or dealing with collection agencies. It’s a nonprofit alternative to for-profit settlement programs, designed to prioritize transparency, education, and client well-being.

The Debt Resolution Plan includes:

Affordable, customized monthly payments
Negotiated settlements often resolving debts at significantly reduced amounts
Legal support available through Fortress Legal Plan
Ongoing access to certified nonprofit credit counselors

"Not everyone can repay their debts in full, especially once accounts are charged off or sold," added Triggs. "But that doesn’t mean they don’t deserve a path to recovery. The Debt Resolution Plan gives them that."

MMI’s Debt Resolution Plan is now available in 33 states and Washington, DC, with nationwide expansion planned by the end of 2026.

About MMI

For over 65 years, Money Management International (MMI) has been at the forefront of financial health solutions, helping individuals and families break free from debt and build a secure financial future. As a trusted nonprofit leader, MMI is dedicated to transforming how Americans navigate financial challenges by providing expert guidance, innovative programs, and culturally relevant financial education. Recognized by major financial institutions and media outlets, MMI’s award-winning services support long-term financial stability and success. Learn more at MoneyManagement.org.

Media Contacts:

Thomas Nitzsche
Vice President of Public Relations
404.490.2227
Thomas.Nitzsche@MoneyManagement.org

Jackie Callaway
Media Relations
813.610.8241
Jackie.Callaway@MoneyManagement.org

Thomas Nitzsche
Money Management International
404.490.2227
Thomas.Nitzsche@MoneyManagement.org

Jackie Callaway
Money Management International
 813.610.8241
Jackie.Callaway@MoneyManagement.org

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