The average American has $90,460 in debt, according to a 2021 CNBC report. That included all types of consumer debt products, from credit cards to personal loans, mortgages and student debt.
The average credit card holder in the U.S. had $5,668 in credit card debt in Q2 2021 — that's 1% higher than Q1 2021's $5,611 average. From the first Q1 2020 to Q2 2021, the average credit card debt per cardholder decreased by $766 or 12%. The average cardholder had $6,434 in Q1 2020.
Consumers in the United States had 15.24 trillion dollars in debt as of the third quarter of 2021, the majority of which was home mortgages, at 10.44 trillion U.S. dollars. Student loan debt was the second largest component, totaling 1.58 trillion U.S. dollars. Why is consumer debt important?
The average U.S. household with debt now owes $155,622, or more than $15 trillion altogether, including debt from credit cards, mortgages, home equity lines of credit, auto loans, student loans and other household obligations — up 6.2% from a year ago.
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.
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.
Kevin O'Leary, an investor on “Shark Tank” and personal finance author, said in 2018 that the ideal age to be debt-free is 45. It's at this age, said O'Leary, that you enter the last half of your career and should therefore ramp up your retirement savings in order to ensure a comfortable life in your elderly years.
Even though household net worth is on the rise in America (at $141 trillion in the summer of 2021)—so is debt. The total personal debt in the U.S. is at an all-time high of $14.96 trillion. The average American debt (per U.S. adult) is $58,604 and 77% of American households have at least some type of debt.
Federal Student Loan Debt by Age
Federal debt among 24-and-under borrowers has declined 3.6% since 2017. Federal borrowers aged 25 to 34 owe an average debt of $33,570. Debt among 25- to 34-year-olds has increased 6.1% since 2017. 35- to 49-year-olds owe an average federal debt of $43,208.
When a lender or landlord reviews your credit, it might use one of two credit scoring models: VantageScore or FICO. Both scoring models range from 300 to 850. And according to a July 2021 VantageScore report, the average credit score in America is 697.
That means most American adults either carry a mortgage, owe on a car, face monthly student loan payments, roll over charges on their credit cards—or all of the above. And yet, over half of Americans surveyed (53%) say that debt reduction is a top priority—while nearly a quarter (23%) say they have no debt.
Main source of debt among consumers in the U.S. 2017-2021
In 2021, 24 percent of U.S. consumers said that their main source of debt was their home mortgage, followed by credit card debt. The share of consumers with no debt increased six percent between 2020 and 2021.
Japan, with its population of 127,185,332, has the highest national debt in the world at 234.18% of its GDP, followed by Greece at 181.78%. Japan's national debt currently sits at ¥1,028 trillion ($9.087 trillion USD).
The average American's savings varies by household and demographic. As of 2019, per the U.S. Federal Reserve, the median transaction account balance (checking and savings combined) for the American family was $5,300; the mean (or average) transaction account balance was $41,600.
Is being debt-free the new rich? Yes, as long as you have money and assets, in addition to no debts. Living loan-free is a fantastic way to stay financially secure, and it is possible for anyone.
Since they are now the country's largest generation—83.1 million people, according to the US Census Bureau—the millennial debt crisis is a national issue. Millennials are the most indebted generation in history. A quarter of all US citizens aged 18 to 34 owe more than $30,000.
There are four primary sources of American debt: home mortgages, car loans, student loans, and credit card debt. Of that $14 trillion dollar debt we mentioned, a little more than $9 trillion can be credited to mortgages. Another $1.3 trillion comes from car loans, which have had low-interest rates since 2008.
But ideally you should never spend more than 10% of your take-home pay towards credit card debt. ... So, take a look at your budget and bank statements and calculate how much money you're spending monthly to pay down debt. If that amount is greater than 10%, you might have a problem.
Mortgages. Mortgage debt historically has been considered one of the safest forms of good debt, since your monthly payments eventually build equity in your home. ... Generally speaking, your monthly mortgage payment (including any PMI — private mortgage insurance) should be less than 28% of your gross monthly income.
The most common mortgage term in the U.S. is 30 years. A 30-year mortgage gives the borrower 30 years to pay back their loan. Most people with this type of mortgage won't keep the original loan for 30 years. In fact, the typical mortgage length, or average lifespan of a mortgage, is under 10 years.
Although ranges vary depending on the credit scoring model, generally credit scores from 580 to 669 are considered fair; 670 to 739 are considered good; 740 to 799 are considered very good; and 800 and up are considered excellent.