After a major life change, Megan Martin found herself starting over and struggling with about $22,000 worth of debt.
"I had been married for 12 years. I got a divorce and ended up in a situation I never expected to be in," she said. "I was in more debt than I was able to handle on my own."
Knowing she needed help, Martin turned to artificial intelligence as a starting point.
WATCH as a woman shows how ChatGPT helped her get out of debt:
"I'm a pretty independent person, but AI helps me compare options and look at the pros and cons," Martin said.
That search led her directly to Money Management International, a nonprofit credit counseling service. Martin said the organization helped to reduce the interest rates on her credit cards and create a tangible plan for paying off debts.
"They helped me come up with a realistic path to move forward so I can get my debt paid off," she explained.
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Surge in consumers using AI for debt relief
Martin's experience reflects a broader trend.
Thomas Nitzsche, a financial educator at Money Management International, said the organization has seen a dramatic spike in people finding them through ChatGPT — a 470% increase in May alone, which aligned with OpenAI and ChatGPT's rollout of their personal finance platform.
In a report by NerdWallet, over a quarter of Americans, 26%, are asking AI chatbots their personal finance questions.
Nitzsche said part of AI's appeal is that it removes the shame many people face when discussing their finances.
"People don't like to talk with other people about their personal finances, especially their debt, because they feel like it's an indictment of their personality or their character or decisions they've made in the past," Nitzsche said. "We obviously know that that's not true."
Risks of sharing financial information with AI
But Nitzsche urges caution as AI chatbots can "hallucinate" or generate false, misleading, or fabricated information.
NerdWallet found about one in ten Americans who have asked an AI chatbot personal finance questions report receiving inaccurate information.
Ask for advice, but verify
Nitzsche recommends always verifying what AI tells you and watching for sponsored results.
"I think my biggest concern right now is that those with the deepest pockets like the for-profit debt settlement companies or the bankruptcy attorneys will sort of pay to rank on ChatGPT the way they have on Google over the years," Nitzsche said. "I would be very cautious and pay attention to anything that is a sponsored result."
Users should also think twice before sharing sensitive personal information with AI platforms.
Martin found AI helpful when figuring out where to turn for debt help.
"I wanted to find out what kind of questions should I be asking these organizations to determine if they're a right fit for me," she said. "How do I verify the validity of what I'm getting into if I do seek help?"
Nitzsche also suggests leaning on trusted human resources to verify advice from AI.
"If you have a great relationship with your personal banker, that's another great resource to confirm the advice you're getting is a good idea for your finances based on your goals," he said.
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For Martin, the combination of lower interest rates and a realistic budget means she can now cover everyday bills — and unexpected ones.
"We are fixing my son's car this week, and I have money for that," she said.
Her advice to anyone struggling with debt is simple.
"Don't ignore it. The sooner you ask for help, the more options you may have," Martin said, so you don’t waste your money.
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