New research from the Financial Services Innovation Coalition (FSIC) underscores growing reliance on debt for everyday necessities and calls for expanded access to legitimate debt resolution options

The Association for Consumer Debt Relief (ACDR) today welcomed the release of a new study from the Financial Services Innovation Coalition (FSIC), The Consumer Financial Health Crisis: Wage Stagnation, Rising Costs, and the American Household Debt Trap, calling it an important contribution to the national conversation about the changing role of consumer debt in America.

The report examines how decades of wage stagnation, rising costs and increasing reliance on high-interest credit have fundamentally changed the purpose of household debt. Rather than financing long-term investments such as education or homeownership, the study finds that many Americans increasingly rely on borrowing to cover basic necessities including housing, groceries, transportation and healthcare.

“This report adds valuable context to the affordability conversation by examining the broader economic forces that are leaving millions of hardworking Americans with fewer options and greater financial vulnerability," said ACDR’s President & CEO Jason Mulvihill.

The report reinforces the importance of ensuring consumers have access to a full range of legitimate debt resolution options when financial hardship becomes unsustainable.

"Every consumer's financial situation is different," Mulvihill said. "There is no one-size-fits-all solution. Regulated debt relief is and should be one of the best options on the table to help consumers struggling with unsecured debt. Policymakers should focus on expanding access to legitimate, well-regulated options, so consumers can choose the path that best fits their needs."

The report provides further evidence that for many consumers, modern, regulated debt relief is among the most effective alternatives to bankruptcy.

"Debt relief is an important tool that helps consumers regain financial stability," Mulvihill added. “Unlike credit counseling, which cannot reduce the principal balance owed, or consolidation loans, which require additional borrowing, debt relief is a proven way for consumers to settle their past-due accounts for less than the principal balance of the debt.”

As policymakers continue examining consumer financial health, ACDR encourages lawmakers, regulators and other stakeholders to review the research and consider policies that improve financial resilience while preserving consumer choice.

About the Association for Consumer Debt Relief

The Association for Consumer Debt Relief (ACDR) is the national trade association representing the consumer debt relief industry. ACDR advocates for policies that expand access to responsible debt resolution options, promote strong consumer protections, and help financially distressed Americans regain financial stability. Its member companies operate under the Federal Trade Commission's Telemarketing Sales Rule, which prohibits the collection of fees before consumers achieve results, in addition to state laws, ACDR standards, and independent audits.

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