As of late 2023, American households carried a total of $17.503 trillion of debt, averaging $104,215 per household.
This analysis from The Motley Fool Ascent provides a thorough overview of American households’ financial responsibilities by slicing through supply chain problems and the economic fallout from inflation.
Drawing on data from Experian, the Federal Reserve, TransUnion, and the U. S. Census Bureau, we break down the most prevalent debt categories, such as credit card debt, mortgages, auto loans, and personal loans.
The average American household carries a hefty load of debt, with mortgages accounting for the lion’s share. But how much exactly do Americans owe on their mortgages, and how does this vary across different age groups? Let’s delve into the data to uncover the intricate landscape of American mortgage debt
Mortgages: The Bedrock of American Debt
As of late 2023 the average American household carries a staggering $17.503 trillion in total debt. A whopping 70% of this debt, or $12.252 trillion is attributed to mortgages. This translates to an average mortgage debt of $244,498 per household, a figure that has been steadily rising in recent years.
Age and Mortgage Debt: A Complex Relationship
Although $244,498 is the average mortgage debt in America, this amount varies greatly amongst age groups. With an average mortgage debt of $245,127, Gen X, the generation born between the mid-1960s and the mid-1980s, bears the brunt of the burden. Millennials, trailing close behind, carry an average mortgage debt of $232,372.
Factors Influencing Mortgage Debt
Several factors contribute to the varying levels of mortgage debt across age groups. For example, Gen X is more likely to be in their prime years for homeownership, which translates into higher mortgage balances. However, because millennials are entering the housing market later in life and frequently have student loan debt to deal with, mortgage balances are slightly lower.
The Impact of Rising Interest Rates
The recent surge in interest rates has further complicated the mortgage landscape. Monthly mortgage payments rise in tandem with interest rates, placing pressure on household budgets. This may result in an increase in mortgage defaults and delinquencies, especially for people with larger debt loads.
Strategies for Managing Mortgage Debt
Navigating the complexities of mortgage debt requires careful planning and responsible financial management. Here are some strategies to consider:
- Refinance your mortgage: If interest rates have fallen since you took out your mortgage, refinancing to a lower rate can save you a significant amount of money over the life of the loan.
- Make extra payments: Putting down additional principal payments can help you pay off your mortgage faster and reduce the total interest you pay.
- Explore government assistance programs: Various government programs offer assistance to homeowners struggling with mortgage payments. Research these options to see if you qualify for any relief.
Mortgage debt plays a significant role in the financial lives of millions of Americans. Understanding the average mortgage debt, its variations across age groups, and the factors influencing it is crucial for making informed financial decisions. By employing effective strategies to manage mortgage debt, individuals can navigate the complexities of homeownership and achieve their financial goals.
Average revolving credit card balance: $6,501
A revolving credit card balance is what consumers pay interest on when they don’t make payments on it. Its one of the most important figures when looking at credit card debt.
The average credit card balance is $6,501 as of the third quarter of 2023, per Experian. Thats up from $5,910 in 2022.
Gen Z has the lowest average credit card balance, $3,148, while Gen X has the highest average credit card balance, $8,870, according to data from the previous quarter.
| Generation | 2022 | 2023 |
|---|---|---|
| Generation Z (18-25) | $2,692 | $3,148 |
| Millennials (26-41) | $5,309 | $6,274 |
| Generation X (42-57) | $7,781 | $8,870 |
| Baby boomers (58-76) | $6,134 | $6,601 |
| Silent Generation (77+) | $3,305 | $3,434 |
Average personal loan debt in 2023: $11,925
| FIGURE | AMOUNT | Previous year |
|---|---|---|
| Average unsecured personal loan amount, October 2023 | $7,608 | $7,934 |
| Average unsecured personal loan balance per consumer, December 2023 | $11,925 | $11,241 |
| Average finance rate on 24-month personal loans from commercial banks, January 2024 | 12.35% | 11.48% |
| Personal loans in hardship, December 2023 | 3.40% | 3.70% |
Personal loans are versatile financial products. They can be used for a variety of financial needs, including weddings, renovations, vacations, or debt consolidation.
TransUnion reports that in October 2023, the average amount of an unsecured personal loan was $7,608, a decrease from $7,934 in the same month in 2022.
However, as of December 2023, the average balance per customer was $11,925, suggesting that many individuals with one unsecured personal loan also had at least one additional one. Thats higher than the level recorded per consumer in December 2022, which was $11,241.
Who does the US Owe its $31 Trillion debt? (National Debt Explained)
FAQ
How much does the average homeowner owe on their mortgage?
|
FIGURE
|
AMOUNT
|
|
Average mortgage debt, 2023
|
$244,498
|
|
Average (mean) mortgage payment, 2021
|
$1,427
|
|
Average (median) mortgage payment, 2021
|
$1,001
|
|
Average mortgage rate, Q4 2023 (30-year fixed)
|
7.30%
|
How much debt do most 40 year olds have?
|
Generation
|
Average total debt (2023)
|
Average total debt (2022)
|
|
Millenial (27-42)
|
$125,047
|
$115,784
|
|
Gen X (43-57)
|
$157,556
|
$154,658
|
|
Baby Boomer (58-77)
|
$94,880
|
$96,087
|
|
Silent Generation (78+)
|
$38,600
|
$39,345
|
What is the average mortgage amount owed by Millennials?
|
Average Mortgage Balance by Generation
|
|
|
|
|
2021
|
Change, 2022-2023
|
|
Generation Z (18-26)
|
$192,224
|
+7.7%
|
|
Millennials (27-42)
|
$261,225
|
+4.5%
|
|
Generation X (43-58)
|
$259,437
|
+1.7%
|
What is the average credit card debt in America?
|
Generation
|
Average Credit Card Debt
|
|
Millennials
|
$6,521
|
|
Generation X
|
$9,123
|
|
Baby boomers
|
$6,642
|
|
Silent generation
|
$3,412
|
How much do Americans owe on mortgages?
Americans owe $12.14 trillion on 84.0 million mortgages. That comes to an average of $144,593 per person with a mortgage on their credit report. Mortgages represent 70.2% of consumer debt in the U.S. Additionally, Americans owe $349 billion on 13.1 million home equity lines of credit (HELOCs). That equates to an average of $26,702 per account.
How much debt do you owe on a mortgage?
That comes to an average of $144,593 per person with a mortgage on their credit report. Mortgages represent 70.2% of consumer debt in the U.S. Additionally, Americans owe $349 billion on 13.1 million home equity lines of credit (HELOCs). That equates to an average of $26,702 per account. Outstanding HELOC debt represents 2.0% of U.S. consumer debt.
How much debt do Americans owe?
You can opt-out at any time. The average debt an American owes is $103,358 across mortgage loans, home equity lines of credit, auto loans, credit card debt, student loan debt, and other debts like personal loans. Data from Experian breaks down the average debt a consumer holds based on type, age, credit score, and state.
What is the average mortgage payment?
But the average payment is typically higher for those with higher total mortgage debt, as you might expect. For example, millennial members, who have the highest total mortgage debt, have an average next payment of $1,672. Generation X, which has the second-highest average mortgage debt, has an average next payment of $1,689.