The average American debt by type, age, and state

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• The average American debt totals $59,580, including mortgages, auto loans, student loans, and credit card debt.
• 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.

The average American has $59,580 worth of debt 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 report breaks down the average amount of debt Americans have by type, and by borrowers' 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 with 1% of the population.

Here's what the average American owes. 

Average American debt by type of debt

Here's a breakdown of the total amount, according to the Federal Reserve Bank of New York's Household Debt and Credit report from the fourth quarter of 2022.

Mortgage debt is most Americans' largest debt, exceeding other types by a wide margin. Student loans are the next biggest 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 2022. Scroll right to see the total amount of debt.

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. For those under age 30, the largest source of debt 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 U.S. 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 by age group. Scroll right to see more data. 

How to start paying off debt

Holding large amounts of debt, especially high-interest debt, can quickly get expensive. Holding too much 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.

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 rate. 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. 

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 while the best balance transfer credit cards 

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 management plans

If you need outside help with your debts, it may be worth your time to enlist the help of a nonprofit credit counseling organization, which will help you sort out your finances and pay off your debts. In extenuating circumstances, 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. 

Average debt frequently asked questions (FAQ)

How much total debt do Americans owe?

The total household debt in the fourth quarter of 2022 is $16.9 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%.