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The average debt held by Americans includes credit card debt, student loan debt, auto loans, mortgages, home equity lines of credit, and other debts such as personal loans. This totals $104,215 in debt.
According to Experian data, a consumer’s average debt is broken down by type, age, credit score, and state. Weve included supplementary data from the New York Federal Reserve Bank. Both data sets are updated quarterly.
Yo, what’s up, fam? Let’s get real about a topic that affects all of us: debt Specifically, let’s dive deep into the average household debt in the US for 2023. Buckle up, because we’re about to drop some knowledge bombs on you
First things first, let’s get the big picture. As of late 2023, American households are carrying a whopping $17. 503 trillion in total debt. That’s an average of $104,215 per household, which is no chump change.
There’s more, though! The debt isn’t distributed equally among all categories of debt. Let’s break it down:
- Mortgages: These bad boys make up the lion’s share, accounting for a whopping 70% of consumer debt. The average mortgage debt in 2023 is $244,498. That’s a lot of dough to be shelling out every month.
- Credit card debt: This one’s a close second, with a total of $1.129 trillion in Q4 2023. The average credit card debt per holder is $6,501. Ouch!
- Auto loans: These aren’t far behind, with a total of $1.607 trillion in Q4 2023. The average auto loan debt is $23,792.
- Personal loans: These are a bit smaller, with an average of $11,692 per borrower in Q3 2023.
Now let’s get real about some trends:
- Inflation and supply chain issues have been wreaking havoc on everyone’s wallets, and it shows. Average debt is up in nearly every category compared to 2020.
- Credit card delinquency rates are on the rise, hitting levels not seen since the 2008 recession. This means more people are struggling to keep up with their payments.
- Auto loan hardship rates are also up, indicating that more people are having trouble making their car payments.
So, what does this all mean for you? Well it’s important to be aware of the average household debt and how it compares to your own financial situation. If you’re carrying a lot of debt, it’s crucial to develop a plan to pay it down. There are tons of resources available to help you, so don’t hesitate to reach out for support.
Here are some key takeaways:
- The average household debt in the US is $104,215.
- Mortgages are the biggest type of debt, followed by credit card debt and auto loans.
- Inflation and supply chain issues have led to an increase in average debt.
- Credit card and auto loan delinquency rates are on the rise.
Remember, knowledge is power. Knowing the typical household debt and how it impacts you will help you make wise financial decisions and take action to improve your financial situation.
Now, go forth and conquer your debt, my friend!
P.S. If you’re looking for more info, check out these resources:
- The Motley Fool’s Average American Household Debt in 2023: Facts and Figures
- The Federal Reserve Bank of New York’s Household Debt and Credit Report
Stay woke, stay informed, and stay debt-free!
Average debt by age
Debt tends to peak somewhere around middle age. Overall, this indicates that Americans, especially those over 70, have a tendency to pay off debt before retiring and to maintain low debt balances during their golden years. The largest source of debt for those under 30 is mortgages.
Heres how the average debt balance breaks down per person by age group according to Experian data. Scroll right to see more data.
| Generation | Average total debt (2023) | Average total debt (2022) |
| Gen Z (18-26) | $29,820 | $25,851 |
| 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 |
Choose a repayment method and set a goal
Regardless of the approach you select, you will need to start by making a list of everything you owe, the total amount you owe, and the interest rates. Then, you can start to prioritize what you owe.
Two popular strategies are the debt avalanche and the debt snowball. The debt avalanche concentrates on paying off higher-interest debt first to lower the amount you pay overall, while the debt snowball starts with the smallest debt to gain momentum before moving on to larger debts. Depending on how your debt looks, these repayment methods can help you pay off debt fast.
Why Americans Are Drowning In Debt
FAQ
What is the average debt of a household in the US?
What’s the average American credit card debt?
What is considered a lot of debt?
How much household debt is ok?
What is the average household debt in 2023?
Data source: Federal Reserve Bank of New York (2024), Experian (2024). The New York Fed’s quarterly Household Debt and Credit Survey (HHDC) shows that total consumer debt stands at $17.503 trillion as of the fourth quarter of 2023. That’s a record high. According to Experian, average total consumer household debt in 2023 is $104,215.
What is the average debt in America?
The average debt in America is $104,215 across mortgages, auto loans, student loans, and credit cards. Debt peaks between ages 40 and 49 among consumers with excellent credit scores. Washington has the highest average debt at $180,462, and West Virginia has the lowest at $64,320.
How much money do Americans spend on debt?
The most recent debt payment-to-income ratio, from the third quarter of 2023, is 9.8%. That means the average American spends nearly 10% of their monthly income on debt payments. Despite debt increasing overall, Americans are still spending less of their income on debt than in most of the 2000s. Data source: Experian (2024), Federal Reserve (2024).
How much consumer debt does the average American owe?
Americans owe an average of $17.06 trillion in consumer debt — this is a massive number that can be tough to wrap your head around. That’s why it’s helpful to look at the American consumer debt landscape in terms of averages. Here’s how $17.06 trillion in total consumer debt breaks down for the average American: