Household Debt Is at a Crisis Point—Here’s How We Can Help
The numbers are in, and they are staggering. According to the latest report from the Federal Reserve Bank of New York, total household debt has surged to $18.04 trillion, with credit card balances alone hitting $1.21 trillion, a 7.3% increase from last year. Auto loan and student debt balances continue to rise, while delinquency rates are creeping up across multiple debt categories.
For low-income, low-wealth households, this isn’t just an economic indicator—it’s a daily struggle. Families are juggling high-interest debt, predatory loan terms, and financial instability, making it nearly impossible to build wealth or get ahead.
At Community Financial Resources (CFR), we believe in solutions that put people—not profits—first. That’s why we’re developing our Debt Consolidation Toolkit designed to help families:
🔹 Consolidate unsecured debt at fair terms, eliminating the cycle of high-interest borrowing.
🔹 Improve credit scores and financial stability through structured repayment plans and financial coaching.
🔹 Gain access to debt management tools and financial education via MoneyGoals, which helps users build personalized action plans to tackle debt strategically.
🔹 Avoid predatory lending by offering transparent, responsible loan structures.
This pilot, in partnership with local community nonprofits, will provide direct relief and long-term financial empowerment to families that traditional banking systems overlook.
We’re looking for partners, funders, and advocates who want to help scale this effort. If you’re passionate about financial equity and economic justice, let’s connect.
Source: https://www.newyorkfed.org/microeconomics/hhdc
