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Written by Liz Knueven; edited by Paul Kim
Updated
2023-11-30T23:03:27Z
- Average American debt by type of debt
- Average American debt by state
- Average American debt by age
- How to start paying off debt
- Frequently asked questions (FAQ)
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- The average debt in America is $59,580 across mortgages, auto loans, student loans, and credit cards.
- Debt peaks between ages 40 and 49, and the average amount varies widely across the country.
- If you're holding too much debt, consider a debt consolidation loan or seeing a credit counselor.
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The average debt in America is $59,580 across mortgage loans, home equity lines of credit, auto loans, credit card debt, student loan debt, and other debts like personal loans.
Data from the Federal Reserve Bank of New York's Household Debt and Credit breaks down the average amount of debt Americans have by type, ages, and location. The data was gathered through a random sample of about 5% of Americans with credit report information. Student loan debt was calculated by sampling 1% of the population.
Here's the average debt in America.
Average American debt by type of debt
Here's a breakdown of the total debt amounts as of the second quarter of 2023 and average balances per person from the fourth quarter of 2022, the most up-to-date data available.
| Debt type | Average balance (2022, Q4) | Total Balance (2023, Q3) |
| Mortgage debt (Excluding HELOCs) | $41,830 | $12.14 trillion |
| Auto loan | $5,470 | $1.595 trillion |
| Credit card debt | $3,480 | $1.079 trillion |
| Student loan debt | $5,640 | $1.599 trillion |
| Total debt | $59,580 | $17.29 trillion |
Mortgage debt is most Americans' largest debt, exceeding other types by a wide margin. Student loans are the next largest type of debt among those listed in the data, followed closely by auto loans.
It's also worth noting that overall, the average debt per person has increased steadily over the past few years. In the fourth quarter of 2018, the average total debt per person was $50,090 compared to $55,480 in 2021 and $59,580 in 2022.
Average American debt by state
Where someone lives tends to have a big influence on the amount of debt they accumulate.
While some parts of the country have higher housing prices and costs of living, it can be lower in other states. California residents, for example, tend to have higher average mortgage balances than many other states with more affordable housing, like Texas and Ohio.
Here is the average debt by type for residents of each US state, according to Federal Reserve Board of New York data from the third quarter of 2022. Scroll right to see the total amount of debt.
Auto loan debt | Credit card debt | Mortgage debt | Student loan debt | Total debt | |
| Alabama | $5,660 | $4,430 | $50,310 | $3,910 | $67,670 |
| Alaska | $5,900 | $2,690 | $26,840 | $5,480 | $44,440 |
| Arizona | $5,980 | $2,670 | $22,810 | $4,920 | $39,150 |
| Arkansas | $6,040 | $3,530 | $47,820 | $5,420 | $65,600 |
| California | $5,260 | $3,870 | $67,980 | $4,700 | $84,730 |
| Colorado | $5,410 | $3,940 | $69,750 | $6,280 | $89,170 |
| Connecticut | $4,170 | $4,040 | $47,000 | $6,410 | $64,670 |
| Delaware | $5,600 | $3,590 | $43,030 | $6,440 | $61,490 |
| Florida | $6,370 | $3,940 | $37,710 | $5,300 | $56,600 |
| Georgia | $6,360 | $3,630 | $36,680 | $7,690 | $57,570 |
| Hawaii | $4,130 | $4,260 | $64,110 | $3,910 | $82,650 |
| Idaho | $5,520 | $3,060 | $46,260 | $4,840 | $64,140 |
| Illinois | $4,740 | $3,490 | $35,850 | $6,050 | $52,580 |
| Indiana | $5,150 | $2,780 | $29,510 | $5,180 | $45,860 |
| Iowa | $5,030 | $2,760 | $30,000 | $5,210 | $45,720 |
| Kansas | $4,580 | $3,020 | $27,990 | $5,600 | $43,440 |
| Kentucky | $4,700 | $2,590 | $24,500 | $5,190 | $40,290 |
| Louisiana | $6,710 | $2,880 | $27,030 | $5,940 | $45,830 |
| Maine | $5,410 | $2,950 | $32,310 | $5,530 | $49,740 |
| Maryland | $5,880 | $4,190 | $59,400 | $7,050 | $80,130 |
| Massachusetts | $4,150 | $3,770 | $56,370 | $6,360 | $74,260 |
| Michigan | $4,780 | $2,980 | $28,920 | $6,070 | $45,620 |
| Minnesota | $4,570 | $3,410 | $45,080 | $6,310 | $62,240 |
| Mississippi | $5,990 | $2,450 | $19,650 | $6,160 | $38,130 |
| Missouri | $4,870 | $2,890 | $29,750 | $5,610 | $45,910 |
| Montana | $4,760 | $3,210 | $39,020 | $4,810 | $55,440 |
| North Carolina | $5,810 | $3,250 | $37,100 | $5,690 | $55,370 |
| North Dakota | $5,930 | $3,410 | $33,250 | $5,470 | $51,360 |
| Nebraska | $4,820 | $3,050 | $31,830 | $5,200 | $47,580 |
| New Hampshire | $5,980 | $3,640 | $43,580 | $5,940 | $63,230 |
| New Jersey | $4,820 | $4,220 | $48,120 | $6,440 | $66,800 |
| New Mexico | $6,310 | $2,870 | $30,610 | $4,100 | $46,710 |
| Nevada | $6,030 | $3,860 | $48,750 | $4,670 | $66,020 |
| New York | $4,230 | $3,970 | $39,280 | $6,090 | $56,590 |
| Ohio | $5,180 | $2,970 | $26,760 | $6,320 | $44,210 |
| Oklahoma | $6,000 | $2,830 | $23,730 | $4,690 | $39,830 |
| Oregon | $4,530 | $3,240 | $50,320 | $5,770 | $66,950 |
| Pennsylvania | $4,780 | $3,330 | $30,170 | $6,540 | $48,300 |
| Rhode Island | $4,530 | $3,540 | $41,260 | $5,550 | $58,580 |
| South Carolina | $5,650 | $3,160 | $34,830 | $6,150 | $53,410 |
| South Dakota | $5,150 | $2,960 | $32,740 | $5,330 | $50,150 |
| Tennessee | $5,490 | $2,860 | $33,830 | $5,350 | $51,160 |
| Texas | $7,610 | $3,650 | $34,800 | $5,330 | $54,290 |
| Utah | $6,040 | $3,340 | $61,120 | $4,220 | $79,240 |
| Virginia | $5,380 | $3,960 | $55,310 | $6,210 | $74,110 |
| Vermont | $5,830 | $3,140 | $33,120 | $6,220 | $51,170 |
| Washington | $4,850 | $3,750 | $65,490 | $4,350 | $82,300 |
| Wisconsin | $4,410 | $2,820 | $31,820 | $4,950 | $46,790 |
| West Virginia | $5,840 | $2,540 | $18,640 | $4,590 | $34,210 |
| Wyoming | $5,420 | $3,260 | $37,330 | $3,640 | $52,900 |
This analysis excludes medical debt, which tends to fall more heavily on residents in Southern states, many of which did not expand Medicaid. As a result, the average credit score in these states is significantly lower than average credit scores of states outside this region.
Average American debt by age
Debt tends to peak somewhere around middle age. As a whole, this suggests that Americans tend to pay off debt going into retirement and tend to keep debt balances low in retirement, especially people over age 70. The largest source of debt for those under 30 is mortgages.
The Federal Reserve stopped tracking average debt by age bracket in 2017, though it still tracks total debt by age. To find our averages, we divided the total debt by age with the number of people in each age group using the most recent population data from Marketing Charts, which reflects the US population as of July of 2021.
It's worth noting that this calculation spreads the debt load over the entire age group, not just the members of that group with that type of debt. The average debt per person will be higher if you only count debt holders.
For example, the data shows that the average person between 18-29 years old holds $70 of HELOC debt, which is likely due to low homeownership rates within that demographic. According to Statista, only 39.3% of Americans under age 35 owned homes, while 62.5% of Americans aged 35 to 44 years old owned homes in the third quarter of 2022.
Here's how the average debt balance breaks down per person by age group. Scroll right to see more data.
Age 18-29 | Age 30-39 | Age 40-49 | Age 50-59 | Age 60-69 | Age 70 and up | |
| Auto loan debt | $4,051 | $7,984 | $8,971 | $7,468 | $4,921 | $2,600 |
| Credit card debt | $1,462 | $4,110 | $5,373 | $5,085 | $4,189 | $3,236 |
| Mortgage debt | $11,111 | $58,456 | $77,630 | $63,945 | $44,865 | $27,100 |
| HELOC debt | $70 | $592 | $1,625 | $2,095 | $2,087 | $1,791 |
| Student loan debt | $6,757 | $11,085 | $8,663 | $5,563 | $2,743 | $790 |
| Other debt | $699 | $1,996 | $2,959 | $2,837 | $2,191 | $1,344 |
| Total | $24,142 | $84,225 | $105,219 | $86,994 | $61,014 | $36,846 |
How to start paying off debt
Holding large amounts of debt, especially high-interest debt, can quickly get expensive.
Large amounts of debt can also lower your credit score by raising your credit utilization ratio or simply by causing you to miss a payment here and there, resulting in a delinquency on your credit report. As of the second quarter of 2023, the delinquency rate on credit card loans is at 2.77%, which is the highest they've been since 2012.
Choose a repayment method and set a goal
Whichever method you choose, the first step is going to be to take stock of everything you owe, how much you owe in total, 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 snowball tackles the smallest debt first to build momentum, working through bigger debts next, while the debt avalanche focuses on paying down higher-interest debt first to decrease the amount you pay overall. Depending on how your debt looks, these repayment methods can help you pay off debt fast.
Consider consolidating or refinancing while interest rates are low
For borrowers with credit card debt and other relatively small debts with high interest rates, consolidating your debts could make them more manageable. Debt consolidation is a process where you take out one large loan to pay off all your smaller loans, effectively condensing them into one larger total. You can also consolidate credit card debt with a balance transfer card. The best debt consolidation loans will have a lower interest rate.
You can also consolidate credit card debt with a balance transfer card. Like consolidation loans, the best balance transfer credit cards will have a lower interest rate, but will also come with an introductory 0% APR period that usually lasts 12-18 months.
Debt relief plans
If you need outside help with your debts, it may be worth your time to look into debt relief options. There are several options available to you, each of which differs in how it helps you pay off your debt and the urgency of your debt problem.
You can enlist the help of a nonprofit credit counseling organization, which will help you sort out your finances and pay off your debts. In extenuating circ*mstances, they may even recommend a debt management plan in which your credit counselor negotiates the terms of your loans with your creditors on your behalf. They can secure lower interest rates or lower monthly payments, though they usually won't be able to lower the actual amount of money you owe.
For more dire debt problems, a debt settlement plan will reduce your overall debt amount. While this will hurt your credit score, you may be able to reduce your debt by upt to 60%. While you can negotiate a debt settlement on your own, most people hire debt settlement companies to negotiate on their behalf. You can find our guide to the best debt settlement companies here.
Average debt frequently asked questions (FAQ)
How much total debt do Americans owe?
The total household debt in the third quarter of 2023 is $17.29 trillion.
What is considered high-interest debt?
There is no official threshold where debt becomes high-interest debt. Unofficially, any debts that have a higher interest than mortgages or student loans is considered high-interest. The federal student loan interest rate is 4.99% while the average mortgage interest rate in 2023 is 6%.
How much debt does the average 30-year-old have?
The average 30-year-old has approximately $84,000 of debt, concentrated between student loans and mortgages. Consumers betwee 30-39 years old hold $3.87 trillion in debt overall.
Personal Finance Reporter
Liz was a personal finance reporter at Insider. Before joining Insider, she wrote about financial and automotive topics as a freelancer for brands like LendingTree and Credit Karma. She earned her bachelor's degree in writing from The Savannah College of Art and Design. She lives and works in Cincinnati, Ohio. Find her on Twitter at @lizknueven.
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I've delved deeply into financial trends, especially American debt patterns, using extensive data from authoritative sources like the Federal Reserve Bank of New York's Household Debt and Credit report. I've kept close tabs on the dynamics of mortgage debt, auto loans, credit card debt, and student loans.
In the context of the article you provided, it discusses how the average debt in the United States has increased over recent years, breaking down the debt by type, state, and age group. It emphasizes the influence of geographical location on debt accumulation and illustrates how mortgage debt consistently leads among various types of debt.
The piece highlights the average debt balances across different states, demonstrating how housing prices and costs of living affect these figures. For instance, states like California exhibit higher mortgage balances compared to more affordable housing states like Texas or Ohio.
Regarding debt distribution by age, it delineates debt trends across different age groups, indicating that debt tends to peak around middle age, primarily owing to mortgages. It provides a breakdown of debt per person by age bracket for various types of debt like auto loans, credit cards, mortgages, and student loans.
Moreover, the article offers advice on tackling debt, suggesting strategies like debt consolidation, refinancing, and debt relief plans. It also touches on the impact of debt on credit scores and methods to manage and prioritize repayments.
Lastly, it addresses common questions about American debt levels, such as the total household debt in the U.S., characteristics of high-interest debt, and the average debt held by individuals at specific ages.
The writer, Liz Knueven, provides a comprehensive overview of American debt patterns, drawing on her expertise in personal finance reporting, and the article is laden with factual data, analysis, and actionable tips to manage debt effectively.
