Here’s How Much Debt the Average American Has (2024)

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Americans have less personal debt than they did before the pandemic, according to data showing the average adult owes a little under $22,000.

Research from financial services company Northwestern Mutual found that excluding mortgages, the average personal debt per individual sat at $21,800 in 2023, significantly lower than the $29,800 recorded in 2019.

At the same time, Americans have wildly different experiences with their debt: While more than a third of Americans said they’re carrying their highest level of debt ever, an even greater share reported the opposite. The latest New York Federal Reserve data also shows that rising credit card debt and auto loans helped push U.S. household debt to new records in the fourth quarter of 2023.

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Average debt levels

Northwestern Mutual and the Harris Poll interviewed 2,740 U.S. adults online between mid-February and early March of 2023. Here are some of the findings:

  • Despite persistently high inflation in recent times, the study showed average personal debt among U.S. adults, not including mortgages, has dropped steadily over the past four years.
  • The average American in 2023 carried $21,800 in personal debt (excluding mortgages), a whopping $8,000 less than what Northwestern Mutual recorded in 2019.
  • Personal debt for many Americans is decreasing: 43% percent said they have the lowest or close to the lowest debt they’ve ever carried.
  • However, 35% of Americans reported that they’re in the most debt of their lives. New York Fed data shows that U.S. household debt swelled to $17.5 trillion last quarter, with credit card balances making up about $1.13 trillion of it — a new high for credit card debt.
  • Unsurprisingly, younger generations struggle the most with student loan debt, the Northwestern Mutual study found: 5% of survey participants overall said personal education loans were their top source of debt. That percentage increases to 17% for Gen Z and 10% for millennials.
  • Those with personal debt said on average that 30% of their monthly income goes to paying it off.
  • Nearly half (49%) of survey respondents said they expect to pay off their debt within one to five years, while 39% expect it to take longer — perhaps even a lifetime.

Top sources of personal debt

Credit cards are the main source of debt for U.S. adults, accounting for more than double any other source cited by survey respondents.

  • Credit cards (28%)
  • Car loans (12%)
  • Medical debt (7%)
  • Home equity loans / lines of credit (6%)
  • Personal education loans (5%)
  • Educational expenses for children or family members (3%)

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Progress on paying off debt

Americans have been making consistent progress when it comes to paying off their debts, according to the survey, even reducing what they owe over the course of a period of historic inflation. While the report didn't explore how Americans are paying down debt, the data shows the average debt per individual declined the most (by $6,475) between 2019 and 2021. By comparison, debt per individual dropped by $1,525 between 2021 and 2023.

During those early pandemic years, many workers grew their savings and eliminated debt by spending less money, working remotely and stashing away their stimulus checks. In surveys, many people say they used their stimulus checks for savings or paying off debt.

Even though the report suggests Americans are reducing their debt overall, that doesn’t mean everyone’s circumstances are alike, as shown by the survey’s divide between those who say they owe the most or least debt ever.

In fact, U.S. household debt grew by $16 billion between April and June of 2023, according to the New York Fed, driven in large part by high interest rates on credit cards: The average credit card APR now sits at more than 20%. Auto loan balances also increased by $20 billion in that time thanks to inflation and high interest rates. Delinquencies related to credit card debt and auto loan debt have been rising recently as well.

Regardless, Americans should do their best to stick to their repayment strategies to continue the trend of consistent declines in debt levels recorded by the Northwestern Mutual study.

"It can be a slippery slope between manageable debt and runaway debt, so it's an important time to remain extra vigilant about planning and spending," Christian Mitchell, chief customer officer at Northwestern Mutual, said in a news release.

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Here’s How Much Debt the Average American Has (2024)

FAQs

Here’s How Much Debt the Average American Has? ›

Millennials average debt: $24,833. Gen X average debt: $28,670. Baby boomer average debt: $18,272. Average debt for all Americans: $22,713.

What is the average debt for the average American? ›

The average debt an American owes is $104,215 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.

How many Americans are 100% debt free? ›

Around 23% of Americans are debt free, according to the most recent data available from the Federal Reserve. That figure factors in every type of debt, from credit card balances and student loans to mortgages, car loans and more. The exact definition of debt free can vary, though, depending on whom you ask.

How much debt is enough? ›

Ideally, financial experts like to see a DTI of no more than 15 to 20 percent of your net income. For example, a family with a $250 car payment and $100 of monthly credit card payments, and $2,500 net income per month would have a DTI of 14 percent ($350/$2,500 = 0.14 or 14%).

How much debt does the average 60 year old have? ›

Average total debt by age and generation
GenerationAgesCredit Karma members' average total debt
Millennial (born 1981–1996)27–42$48,611
Gen X (born 1965–1980)43–58$61,036
Baby boomer (born 1946–1964)59–77$52,401
Silent (born 1928–1945)78–95$41,077
1 more row
Jun 22, 2023

At what age are people debt free? ›

A good goal is to be debt-free by retirement age, either 65 or earlier if you want. If you have other goals, such as taking a sabbatical or starting a business, you should make sure that your debt isn't going to hold you back.

What country has the most debt? ›

Profiles of Select Countries by National Debt
  • Japan. Japan has the highest percentage of national debt in the world at 259.43% of its annual GDP. ...
  • United States. ...
  • China. ...
  • Russia.

How many people have no credit card debt? ›

Percentage of people who have more credit card debt than emergency savings, by gender and income
Year incomeCredit card debtNo credit card debt and no emergency savings
Less than $50,00042%18%
$50,000-$74,99939%4%
$75,000-$99,99938%4%
$100,000 or more21%1%
1 more row
Feb 22, 2024

Who owns over 70% of the US debt? ›

Of the $33T of debt, roughly 78% is owned by the public (70% US vs 30% International). The major US public owners include the FED ($6T, but they are no longer buyers), mutual funds, banks, states, pension funds and insurance companies.

Had the US ever been debt free? ›

By January of 1835, for the first and only time, all of the government's interest-bearing debt was paid off. Congress distributed the surplus to the states (many of which were heavily in debt). The Jackson administration ended with the country almost completely out of debt!

Is Tesla in debt? ›

Total debt on the balance sheet as of March 2024 : $9.91 B

According to Tesla's latest financial reports the company's total debt is $9.91 B. A company's total debt is the sum of all current and non-current debts.

How much credit card debt is normal? ›

On an individual level, the overall average balance is around $6,501, per Experian's data. Other generations' credit card debt falls closer to that average or below. Here's the average amount of credit card debt Americans hold by age as of the third quarter of 2023, according to Experian.

How much debt is serious? ›

A good balance to aim for is about 35% or less. Anything higher than this could indicate that you have too much debt for the amount of income you earn. Another way to tell if you have too much debt is to pay attention to the way you manage money each month.

How many Americans are debt-free? ›

What percentage of America is debt-free? According to that same Experian study, less than 25% of American households are debt-free. This figure may be small for a variety of reasons, particularly because of the high number of home mortgages and auto loans many Americans have.

How many Americans live paycheck to paycheck? ›

A majority, 65%, say they live paycheck to paycheck, according to CNBC and SurveyMonkey's recent Your Money International Financial Security Survey, which polled 498 U.S. adults. That's a slight increase from last year's results, which found that 58% of Americans considered themselves to be living paycheck to paycheck.

At what age do most people pay off their house? ›

But with nearly two-thirds of retirement-age Americans having paid off their mortgages, it means that the average age they have gotten rid of that debt is likely in their early 60s. Stats from 538.com, for example, suggest the age is around 63.

Is $5000 in debt a lot? ›

$5,000 in credit card debt can be quite costly in the long run. That's especially the case if you only make minimum payments each month.

What is considered a lot of debt? ›

Generally speaking, a good debt-to-income ratio is anything less than or equal to 36%. Meanwhile, any ratio above 43% is considered too high. The biggest piece of your DTI ratio pie is bound to be your monthly mortgage payment.

How much debt is normal for your age? ›

Average Debt (Q1 2022)
18-25Average Debt (Q1 2022)$8,129
26-35Average Debt (Q1 2022)$16,832
36-45Average Debt (Q1 2022)$25,084
46-55Average Debt (Q1 2022)$31,442
4 more rows
Jun 2, 2022

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