US Generation Z Debt Surge Drives Record Credit Counseling Enrollments

Money Management International reported a record 15,000 Americans enrolling in its debt‑management plans during the first half of 2026, the highest mid‑year total since the agency began tracking data in 2017. The fastest‑growing client group is Generation Z, whose enrollment rose 35 % over the previous year, reflecting mounting pressure from rising housing, food, transportation and healthcare costs.

Credit‑repair expert Micah Smith warned that aggressively paying off loans can actually lower a credit score. He advises consumers to keep credit‑card utilization below 10 %—ideally under 7 %—and to time balance reductions to the statement‑closing date rather than the payment due date. Smith also suggests requesting credit‑limit increases, which can modestly boost scores without a hard inquiry.