(TNND) — More Americans sought help with their mounting debt last year, according to one of the country's largest nonprofit credit counseling agencies.

Money Management International saw a 35% increase in new clients seeking financial counseling, according to just-released 2024 figures.

And the growing need for financial counseling was driven by young adults.

MMI saw 48% annual growth in clients in their 20s.

Millennials accounted for 43% of all clients seeking counseling, making them the largest generational group. They were followed by Gen X at 30%.

MMI financial educator Thomas Nitzsche said they saw “a really significant jump” in new clients last year, regardless of age.

It’s not just that more people reached out for help, but their indicators of financial distress were also on the rise.

Housing costs are up, monthly expenses are up, and the average debt load is up significantly, Nitzsche said.

“Even though average income continues to increase, it's not keeping up with the cost of living,” he said.

MMI clients carried an average unsecured debt of $29,364 last year, up 8% from 2023.

Gen X and baby boomers carried the highest unsecured debt, averaging about $36,000 and $32,000, respectively.

Millennial clients had an average unsecured debt of about $30,000, close to the overall client average.

In 2024, 47% of millennial clients reported facing financial hardships due to excessive credit card use, higher than older generations.

Young adults, the 21-30 group, carried lower unsecured debt. But their debt was rising at a faster rate than MMI’s overall client base.

They saw a 12% rise in average unsecured debt, from $16,318 in 2023 to $18,254 in 2024.

Nitzsche said younger adults are “just a more vulnerable population,” with lower earnings and savings who are earlier in their working careers.

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Those folks are hit harder by increased costs, especially in housing, he said.

In 2024, 66% of millennial clients were renters. Typical first-time home buyers are finding it tough to crack the market.

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Nitzsche said he’s expecting to see a normal seasonal spike in new clients this month. People are looking to get control of their debt in the new year.

Nitzsche offered advice for people who are struggling with debt, and the first step is to cut through the stigma to get the help that's available.

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Reducing the interest charged to debt is key to eventually shedding the financial burden.

The first step is just creating a budget, he said.

Most of the clients MMI works with haven't created a formal budget to understand what's coming in and what's going out.

If you do fall behind, talk to your creditors, he said.

Studies have found that about three-quarters of people are successful in getting a lower interest rate when they ask for it.

A lot of creditors have hardship programs in place, or they'll work with a debt management group, such as MMI, to reduce interest rates.

Creditors are incentivized to work with you, Nitzsche said.

A 0% balance transfer card might be a good option for some people. You could pause your interest clock for up to 21 months with one of those cards.

A consolidation loan is another option.

A reputable nonprofit credit counseling agency, such as MMI, can also help, especially for folks who don’t have the credit for a 0% balance transfer card or consolidation loan.

Even a few percentage points decrease in interest can add up to thousands in the long run, Nitzsche said.