Silent Financial Struggles Increase in Asian American Households

A new report from Money Management International (MMI) has revealed a developing significant and urgent trend. Studies show a growing financial distress among Asian American households. MMI, a leading nonprofit credit counseling and debt management organization, has reported a staggering 215% surge in Asian American clients seeking credit counseling since 2021, a growth rate that surpasses every other demographic group. As MMI Vice President Thomas Nitzsche noted in an MMI/GlobeNewswire release, “The data is clear, there's a growing financial strain among Asian American households, and more individuals are stepping forward to seek help.”

The data spotlights a few considerable financial challenges within this community. MMI’s Asian American clients carry the highest average unsecured debt, at over $43,000, which is considerably higher than the $32,000 average across the rest of their clients. Additionally, they bear the steepest monthly budget shortfalls as well, with an average deficit of $500. That’s more than double the shortfall reported by White non-Hispanic clients.

One major barrier to seeking assistance, according to Nitzsche, is the pressure to maintain financial appearances. “Many of our clients say the pressure to maintain financial appearances created a barrier to reaching out for help,” he said, while emphasizing that seeking support is a positive step. “But seeking support is a sign of strength and often the first step toward real stability.”

This report highlights a need to have deeper conversations about financial health within the Asian American community. It also underscores the importance of providing culturally informed guidance to ensure that individuals feel empowered to seek help. As Nitzsche concluded, “We want to make sure they know they're not alone, and that safe, supportive, and culturally informed financial guidance is available.”

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