Imani Moise

The latest data from a trade group that represents credit counselors is showing that more middle-class, middle-income Americans are also falling behind on their bills.

The latest data from a trade group that represents credit counselors is showing that more middle-class, middle-income Americans are also falling behind on their bills.

And the data from this organization is particularly alarming because credit counseling is typically seen as the last step before bankruptcy.

Credit counselors, they're nonprofits.

It's still seen as a private sector solution before you take it to the courts and get a formal restructuring.

What they're seeing is that the average client now makes $70,000.

So that's still considered middle class, middle income.

It's not high income.

But bad outcomes are coming for higher and higher earners.

Imani says inflation is making it more difficult for people to stay out of debt.

The head of the trade group that represents these counselors put it best that they're seeing debt move from discretionary to survival.

So it's not just I'm charging my family vacation to the credit card.

It's I'm paying for groceries.

I'm paying for gas.

And if you are struggling to pay for those things, then what is the first to go?

That would be discretionary spending.

The cost of living is getting higher.

So everything from housing to

to groceries, to other daily essentials.

They're unable to stick to the budgets that they've set for themselves.