The average American owed $103,358 in consumer debt in the second quarter of 2023, the latest data available, according to credit bureau Experian.
At the close of 2019, the average household had a credit card debt of $7,499. During the first quarter of 2021, it dropped to $6,209. In 2022, credit card debt rose again to $7,951 and has increased linearly. In 2023, it reached $8,599 — $75 shy of the 2024 average.
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.
Running up $50,000 in credit card debt is not impossible. About two million Americans do it every year. Paying off that bill?
U.S. consumers carry $6,501 in credit card debt on average, according to Experian data, but if your balance is much higher—say, $20,000 or beyond—you may feel hopeless. Paying off a high credit card balance can be a daunting task, but it is possible.
In a recent NerdWallet survey, 57% of Americans said they were living paycheck to paycheck.
Credit Card Debt. Credit card debt is one thing nearly all Americans share, regardless of race, gender or income level. It's the most common type of debt in the U.S. By the end of 2022, Americans owed an all-time high of $986 billion on credit cards, a $130 billion increase in 12 months.
The Standard Route is what credit companies and lenders recommend. If this is the graduate's choice, he or she will be debt free around the age of 58. It will take a total of 36 years to complete. It's a whole lot of time but it's the standard for a lot of people.
The average FICO credit score in the US is 717, according to the latest FICO data. The average VantageScore is 701 as of January 2024.
Key takeaways. Debt-to-income ratio is your monthly debt obligations compared to your gross monthly income (before taxes), expressed as a percentage. A good debt-to-income ratio is less than or equal to 36%. Any debt-to-income ratio above 43% is considered to be too much debt.
New York Federal Reserve: Gen Z Has Largest Percentage of Credit Card Debt. A growing number of Americans are maxed out on credit cards, with Gen Z leading the way, The Washington Post reported, citing a new report from the Federal Reserve Bank of New York.
Is $5,000 a lot of debt? The answer will depend on your credit limits. If you have $10,000 in available credit across two cards, then your utilization is 50%, which is a bit high and can hurt your credit score. But if you have $20,000 in credit across three cards, you're only using 25%, which is in a healthy range.
Last year, Northwestern Mutual found that the average personal debt among U.S. adults excluding mortgages reached a four-year low — and significantly lower than an average of nearly $30,000 in 2019. In 2024, the average debt crept up from $21,800 to $22,713, with 66% of respondents saying they hold at least some debt.
Net worth is the difference between the values of your assets and liabilities. The average American net worth is $1,063,700, as of 2022. Net worth averages increase with age from $183,500 for those 35 and under to $1,794,600 for those 65 to 74. Net worth, however, tends to drop for those 75 and older.
Who owns the most U.S. debt? Around 70 percent of U.S. debt is held by domestic financial actors and institutions in the United States. U.S. Treasuries represent a convenient, liquid, low-risk store of value.
Key Takeaways. The average net worth in 2022 was $1,063,700, while the median net worth was $192,200. There's often a strong correlation between income and net worth, and higher earners tend to have much higher net worth.
The Gen X debt situation
The cohort also has the largest share of people with debt, nearly 99% carry some type of balance, LendingTree found. Gen Xers led the way in three of the four categories analyzed. The group — between 44 and 59 years old — has the highest median credit card, auto loan and student loan balances.
Only 18% of individual Americans make more than $100,000 a year, according to 2023 data from careers website Zippia. About 34% of U.S. households earn more than $100,000 a year, according to Zippia.
Households are defined as living paycheck to paycheck if in the quarter their necessity spending exceeds 95% of their income.
35% or less: Looking Good - Relative to your income, your debt is at a manageable level. You most likely have money left over for saving or spending after you've paid your bills. Lenders generally view a lower DTI as favorable.
Here's the average debt balances by age group: Gen Z (ages 18 to 23): $9,593. Millennials (ages 24 to 39): $78,396. Gen X (ages 40 to 55): $135,841.
The average U.S. household has credit card debt of about $6,100, according to the Federal Reserve's most recent Survey of Consumer Finances, issued in November 2023.