Analysis of the debt share in the U.S. shows that people aged 40-49 hold the largest amount of debt at $4.21 trillion in total. People aged 50-59 have the most credit card debt in total at $0.21 trillion, and people aged 30-39 have the most student loan debt at $0.5 trillion.
(NewsNation) — Mortgages make up the bulk of household debt but a new analysis shows most Americans owe thousands of dollars beyond their home loans, with members of Gen X carrying the highest balances.
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. The largest percentages of the average consumer debt balance are mortgages.
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.
Running up $50,000 in credit card debt is not impossible. About two million Americans do it every year. Paying off that bill?
Approximately three-quarters of Black- and White-headed families have debt, but the median debt-to-asset ratio is 50% higher among Black than White families (Copeland, 2020), with Black borrowers less likely to fully repay loans (Brevoort et al., 2021).
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Bottom Line. You are not responsible for your parent's debt. Any debt that they held is managed through the estate, and then disposed of. However, if you choose to take out a joint loan with your parents while they're alive or to assume a burdened asset from their estate, you can voluntarily take on their debt.
The Gen Z debt situation
The youngest generation in the study has the lowest debt ($16,652) but the vast majority, 97%, still carry a balance. As far as student loans, Gen Zers owe significantly less than other generations, with a median balance of $12,172 — roughly half of what millennials owe for school.
Specifically, both Gen Xers and millennials held more debt than baby boomers. The reasons, though, are different. Gen Xers had the highest level of mortgage debt, consistent with the fact that they also had the highest level of home values.
Which generation has the lowest credit score? As of 2023, the generation with the lowest credit score is Gen Z (18 – 26). That said, the generation with the lowest credit score is almost always going to be the youngest generation of adults.
Baby boomers have the highest household net worth of any US generation. Defined by the Federal Reserve as being born between 1946 and 1964 (currently in the ages between 59 and 77), baby boomers are in often in the sunset of their career or early into retirement.
Japan and China have been the largest foreign holders of US debt for the last two decades. From 2000 to 2023, annual totals are based on data from December, while the 2024 data is updated through April.
Encore Capital Group and subsidiaries form the largest debt buyer and collector in the United States.
Public debt, which accounts for roughly 80% of the total, is owed to investors. Those investors include foreign governments, mutual funds, pension funds, and individuals among others. The Federal Reserve owns part of this public debt. Intragovernmental debt accounts for the other 20%.
Asian households overall had more wealth than other households two years since the start of the pandemic. In 2021, Asian households had a median net worth of $320,900, compared with $250,400 for White households. The median net worth of Hispanic households ($48,700) and Black households ($27,100) was much less.
Women are stereotypically seen as irresponsible spenders, but the data doesn't back this up. According to a 2019 Experian study, men carry more debt than women across nearly all categories, including credit card debt — the study found that men have $125 more in credit card debt than women on average.
Other factors used to calculate credit scores can disproportionately affect certain racial groups. Credit scores generally favor mortgage holders over renters. White-Americans have the highest average credit scores, followed by Hispanics and then Blacks.
In a recent NerdWallet survey, 57% of Americans said they were living paycheck to paycheck.
According to Experian, average total consumer household debt in 2023 is $104,215. That's up 11% from 2020, when average total consumer debt was $92,727.
According to the Federal Reserve's Survey of Consumer Finances (SCF) for 2022 (the most recent study released publicly), the average savings balance for people ages 64 and younger ranged from $20,540 to $72,520, with median balances ranging from $5,400 to $8,700.