American debt statistics: how much do Americans owe?
Explore how much debt the average American has and why the cost of living is driving these figures upward.
Summary
According to Experian, the average debt in the US is $104,215, which includes mortgages, loans, and credit card debt.
Rising government debt will likely worsen the cost-of-living crisis and resulting debt.
Over 60% of Americans live from paycheck to paycheck, and many have more than one job to make ends meet.
US consumer debt statistics
According to the Federal Reserve Bank of New York US consumer debt statistics, consumer debt increased to $17.5 trillion in Q4 of 2023.
Notably, credit card debt saw a significant rise, with a total balance growth of 17.4%.
Of all the states, Colorado has the highest household debt per capita, reaching $89,170 and accounting for 99.85% of Colorado residents' average annual earnings.
How much consumer debt does the average American have?
Consumer debt in the US encompasses various forms, such as personal loan debt, credit card debt, and more.
Despite a surprising decline from pre-pandemic levels, the average personal debt per individual was $21,800 at the end of 2023, as opposed to $29,800 at the end of 2019.
Additionally, a concerning trend revealed by Bankrate indicates that one in three Americans had more credit card debt than savings in 2023 and 2024.
For a detailed breakdown, refer to the table from Experian below that displays the total debt balance by debt type:
| Debt Type | 2,021 | 2,022 | 2023 | Change, 2022-2023 |
|---|---|---|---|---|
| Mortgage | $10.29T | $11.22T | $11.58T | 0.032 |
| Home equity | $108.4B | $118.5B | $139.3B | 0.176 |
| HELOC | $295.5B | $305.9B | $326.1B | 0.063 |
| Student loan | $1.60T | $1.48T | $1.47T | -0.70% |
| Auto loan | $1.33T | $1.41T | $1.51T | 0.071 |
| Auto lease | $92.6B | $71.0B | $73.2B | 0.031 |
| Credit card | $784.5B | $910.0B | $1.07T | 0.174 |
| Retail credit card | $111.6B | $110.1B | $126.9B | 0.153 |
| Personal loan | $436.7B | $516.5B | $571.7B | 0.107 |
Total debt balance by debt type
Which states have the highest consumer debt?
American consumer debt statistics show that Colorado, California, Hawaii, and Washington residents tend to carry the highest consumer debts, likely influenced by housing costs, living expenses, and income levels.
Geographic location can significantly impact debt due to variations in living costs and economic conditions.
The table below uses data from Cultural Currents to reveal the highest to lowest debt states:
| State | Average total debt per person |
|---|---|
| Colorado | $89,170 |
| California | $84,730 |
| Hawaii | $82,650 |
| Washington | $82,300 |
| Maryland | $80,130 |
| Utah | $79,240 |
| Massachusetts | $74,260 |
| Virginia | $74,110 |
| Alabama | $67,670 |
| Oregon | $66,950 |
| New Jersey | $66,800 |
| Nevada | $66,020 |
| Arkansas | $65,600 |
| Connecticut | $64,670 |
| Idaho | $64,140 |
| New Hampshire | $63,230 |
| Minnesota | $62,240 |
| Delaware | $61,490 |
| Rhode Island | $58,580 |
| Georgia | $57,570 |
| Florida | $56,600 |
| New York | $56,590 |
| Montana | $55,440 |
| North Carolina | $55,370 |
| Texas | $54,290 |
| South Carolina | $53,410 |
| Wyoming | $52,900 |
| Illinois | $52,580 |
| North Dakota | $51,360 |
| Vermont | $51,170 |
| Tennessee | $51,160 |
| South Dakota | $50,150 |
| Maine | $49,740 |
| Pennsylvania | $48,300 |
| Nebraska | $47,580 |
| Wisconsin | $46,790 |
| New Mexico | $46,710 |
| Missouri | $45,910 |
| Indiana | $45,860 |
| Louisiana | $45,830 |
| Iowa | $45,720 |
| Michigan | $45,620 |
| Alaska | $44,440 |
| Ohio | $44,210 |
| Kansas | $43,440 |
| Kentucky | $40,290 |
| Oklahoma | $39,830 |
| Arizona | $39,150 |
| Mississippi | $38,130 |
| West Virginia | $34,210 |
Credit card debt
Credit cards remain the primary source of debt for US adults, as reported by Money.com.
In Q4 of 2023, Americans' total credit card balance reached $1.129 trillion, a record high from the previous record of $1.079 trillion in Q3 of 2023. This rise resulted in the highest balance since the New York Fed began tracking this data in 1999.
Based on statistics from LendingTree, New Jersey residents hold the steepest average credit card debt among all states, whereas Mississippians have the lowest.
Personal loan debt
As reported by TransUnion, personal loan debt amounted to $241 billion of consumer debt during the third quarter of 2023, a $31 billion increase from the same period in 2022.
Lenders have tightened underwriting standards to minimize lending to high-risk individuals, likely contributing to the decline in delinquency rates.
Experian also notes that the baby boomer generation currently holds the highest average personal loan debt. However, Generation X is rapidly catching up. On average, loan amounts in recent years range from $6,000 to $8,100.
Auto loan debt
Federal Reserve consumer debt statistics show that Americans collectively owe $1.607 trillion in auto loan debt.
Auto loans currently constitute 9.18% of all household debt, making it the second-largest debt category after mortgages.
Amidst an increased interest rate environment, lenders may capitalize on higher costs. However, some may still offer lower interest rates to attract new consumers, potentially giving them a competitive advantage.
Student loan debt
Student loan debt in the US currently amounts to $1.727 trillion, with 2023 marking the first-ever annual decline in student loan debt.
Currently, 43.2 million borrowers carry federal student loan debt that they will have to pay back after graduation.
On average, public university students borrow $32,637 to obtain a bachelor's degree.
According to Forbes, the average student loan by state can be broken down as follows:
States with the highest average student debt:
New Hampshire: $39,928
Delaware: $39,705
Pennsylvania: $39,375
Rhode Island: $36,791
Connecticut: $35,853
States with the lowest average student debt:
Utah: $18,344
New Mexico: $20,868
California: $21,125
Nevada: $21,357
Wyoming: $23,510
Medical loan debt
Even though over 90% of the US population has some form of health insurance, medical expense debt remains a persistent issue. This is especially true for individuals with significant medical needs who often accumulate higher levels of debt over time.
According to Health System Tracker, the prevalence of medical debt in the US is as follows:
Approximately 6% of adults (14 million) in the US owe over $1,000.
2% (6 million) owe more than $5,000.
1% of adults (3 million people) owe more than $10,000.
Mortgage debt
In 2023, the average mortgage balance in the US rose to $244,498, representing an $8,000 increase compared to the previous year.
Despite this, the number of mortgage inquiries decreased from 2022 levels, marking the second consecutive year of decline throughout the calendar year.
In addition, home prices nationwide increased at a moderate annual rate of 5.5% through Q3 2023, as reported by the FHFA. This contrasts with the 12% surge seen from 2021 to 2022. Furthermore, the total number of mortgages, including new and existing ones, remained relatively stable from 2022, with new mortgages created being balanced out by an equivalent number of paid-off mortgages.
What is the average American debt by age?
US consumer debt statistics reveal that the average debt balances by age group are as follows:
Gen Z (ages 18 to 23): $9,593
Millennials (ages 24 to 39): $78,396
Gen X (ages 40 to 55): $135,841
Baby boomers (ages 56 to 74): $96,984
Silent generation (ages 75 and above): $40,925
Consumers in the two oldest age categories have experienced a significant decrease in debt since 2015, with approximately -7.5% for baby boomers and -7.7% for the silent generation.
Get expert financial advice
Mortgages make up a large portion of the US's total debt, but credit card debt is the primary reason for debt, with people living beyond their means and living from paycheck to paycheck.
Securing expert financial advice from a registered financial advisor is a wise decision to avoid debt and better manage your finances.
Let Unbiased match you with an advisor who will give you tailored advice according to your circumstances and goals, helping you minimize debt while building up your savings.
Senior Content Writer
Rachel is a Senior Content Writer at Unbiased. She has nearly a decade of experience writing and producing content across a range of different sectors.