Debt Statistics: An In-Depth Look at Consumer Debt in America
Consumer debt is on the rise in America. With the cost of living increasing and wages stagnant, many Americans are relying on credit cards, student loans, and other forms of debt just to make ends meet. At Delancey Street, we want to provide an in-depth look at the current debt statistics and trends impacting American consumers.
Total Consumer Debt
- Total consumer debt in the U.S. reached $16.9 trillion at the end of 2022, up nearly $3 trillion since 2019
- This includes mortgages, credit cards, student loans, auto loans, and other consumer debt
- Consumer debt is higher than it was before the 2008 financial crisis
The average American household owes $155,622 in debt including mortgages. Without mortgages, the average debt per household is $94,735.
Credit Card Debt
- Americans owe $986 billion in credit card debt as of early 2023
- The average credit card debt per household is $8,984
- The average credit card interest rate is 19.04% APR as of August 2022
Younger generations are relying more on credit cards to make ends meet:
- Gen Z’s average credit card debt is $2,379
- Millennials’ average is $7,450
- Gen X’s average is $8,208
Student Loan Debt
Student loans make up a large portion of consumer debt owed by younger Americans.
- Total student loan debt nationwide stands at $1.77 trillion
- Average student loan debt upon graduation is $30,000 for a bachelor’s degree
The COVID-19 pandemic pause on student loan payments helped some borrowers improve their finances. But payments are set to resume in 2023, which could put strain on budgets.
Americans owe over $1.5 trillion in auto loan debt as of early 2023.
- Average monthly auto loan payment: $599
- Average auto loan interest rate: 7.21% as of Q3 2022
- Average amount financed for a new car: $40,290
Medical debt is a major financial burden, with $88 billion owed on consumer credit reports according to the CFPB.
- 1 in 5 credit reports show medical debt
- Average medical debt of $2,000 can take up to 3 years to pay off
High deductible health plans and surprise medical bills contribute to this debt burden.
Debt impacts some demographics more than others. For example:
- Black Americans have higher average student loan debt at $52,000 vs. $28,000 for white graduates
- Households with children have 14-51% more debt than average
- Single parents have higher debt levels than married couples
Understanding these debt statistics can help consumers make smart borrowing decisions. At Delancey Street, we want to provide financial education along with responsible lending options to help Americans reach their goals. Reach out today to learn more about how we can help you manage debt and improve your finances.