MEDINA, Ohio — High inflation and interest rates, coupled with uncertainty around tariffs and the economy, likely have you worried about your financial future.
As my News 5 Consumer Team colleague Elizabeth VanMetre helps you look for ways to stretch your budget each week at the grocery store, new data from Lending Tree shows Americans are finding it harder to afford essentials like groceries.
In a recent survey, the online lending marketplace found that 25% of people said they are stocking their fridge and pantry with buy now, pay later loans. That's up 14% from last year, and 21% in 2023.
People are also turning to plastic to pay for everyday essentials.
I found a certain age group is now trying to climb out of credit card debt more than any other.
Millennials now make up the largest generation of clients turning to Money Management International.
The nonprofit helps consumers get control of their debt.
I caught up with one Northeast Ohio father who turned to MMI to break the cycle.
"We're back in a recession almost, like, it's been a struggle for a lot of people my age," said Keith Demerest.
Demerest's financial struggle started following a divorce.
"We had two incomes, you know, it was manageable. Most of the credit card debt was in my name," said Demerest.
While trying to move forward, that debt held Demerest back. The amount due every month was more than his budget could handle.
"We were putting groceries on credit because, you know, it was just tight. Everything was difficult," said Demerst.
When the father of two, unemployed at the time, reached out to his bank, a representative told him about Money Management International.
"I was in a really bad spot. Being a nonprofit was probably the biggest peace of mind," said Demerest.
MMI provides credit counseling and debt repayment plans that can significantly cut a client's monthly obligations.
"Our average client comes to us with about a $300 a month shortfall or budget deficit," said Thomas Nitzsche, Money Management International.
With reduced interest rates, the goal is to create a plan to become debt-free within five years.
"We've seen over the last couple of years a really significant shift in the number of millennials seeking counseling," said Nitzsche.
About 43% of MMI's clients right now are millennials.
"There's a lot of pressures on that generation now," said Nitzsche.
Increased housing costs, continued inflation, and carrying higher credit card balances are creating the perfect storm.
"They experience this extended period of sort of financial stress, and the something happens that just sort of breaks the camel's back," said Nitzsche.
In Demerest's case, that’s exactly what happened.
"I was living off of credit and also trying to manage my credit and it was, it was bad. I know a lot of people my age that struggle with finances," said Demerest.
With the help of MMI, Demerest got his nearly $3,000 monthly payment dramatically reduced.
"Getting the payment cut to $1,000 a month has allowed me to have a life again, has allowed me to take a vacation, has allowed me to buy groceries, not on credit cards," said Demerest.
Over the course of his paydown, the savings will stack up.
"I had $60,000 in debt and I'm going to save almost $100,000 in interest," said Demerest.
