Average American Debt – Where Do You Fall?

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Last Updated:Dec 09, 2023

Average American Debt – Where Do You Fall?

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For most Americans, debt is a fact of life. Whether you carry mortgage debt from your home purchase, student loan, or credit card debt, most Americans are saddled with some type of debt. Borrowers often face this financial challenge. And 2023 was an interesting year with high inflation and higher interest rates. There were different money challenges and even a few benefits that were unique to this period in time.

Experian's annual credit survey, which includes insights into consumer credit and debt statistics from 2023, as reported by the Federal Reserve Bank of New York, can help us understand the breakdown of American household debt, particularly across different age groups.

Here’s how credit accounts break down across different categories.

In this article

What’s the breakdown of Americans’ debt?

Unsurprisingly, mortgages take up the highest percentage of debt Americans carry. Americans' average debt as of 2023 is $1,03,358 (including home loans). Here’s a breakdown of what that debt looks like.

Average American Debt by Type	2022	2023	Change
Mortgage	$ 232,545	$ 241,815	4%
HELOC	$ 40,162	$ 41,838	4.2%
Student loan	$ 39,381	$ 38,290	-2.8%
Auto loan and lease	$ 22,139	$ 23,479	6.1%
Credit card	$ 5,699	$ 6,365	11.7%
Total average balance	$ 100,178	$ 103,358	3.2%

Source: Experian

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Which generation has the most non-mortgage debt? Spoiler: It’s not millennials

Generally, Americans’ debt balances peak in their 40s and 50s and then decline as longer-term loans, like mortgages, HELOCs, and student loans, are repaid, according to Experian. As a result, it’s expected that Generation X, who are currently between 41 and 56 years old, would carry the most debt.

Here’s what Experian reports for 2023:

Debt across generations	2022	2023	Change
Generation Z (18-24)	$ 13,814	$ 15,105	9.3%
Millennials (25-40)	$ 28,535	$ 29,702	4.1%
Generation X (41-56)	$ 30,376	$ 32,190	6%
Baby boomers (57-75)	$ 18,769	$ 19,203	2.3%
Silent generation (76+)	$ 7,077	$ 7,076	0%

Source: Experian

As predicted, Generation X holds the highest debt, with millennials close behind. In the next five years, as more millennials reach their 40s and more of that generation begins buying homes, this number will likely start to rise between the generations, with millennials taking over the bulk of the debt. The huge jump in debt from 2022 to 2023 from millennials shows more members of this generation are taking on new loans.

Baby boomers come in third for the highest debt balances, with their debt slowly dropping each year as mortgages and loans are paid down. The silent generation’s debt is also expected to decrease, while Generation Z is likely to take on more debt as they buy cars, take on financing for college, and gain access to credit cards.

Average mortgage debt by generation

Let’s examine the average debt held by individuals in each generation.

Average mortgages by generation	2022	2023	Change
Generation Z	$ 210,180	$ 229,897	9.4%
Millennials	$ 280,305	$ 295,689	5.5%
Generation X	$ 271,044	$ 277,153	2.3%
Baby boomers	$ 187,540	$ 190,441	1.5%
Silent generation	$ 138,599	$ 141,148	1.8%

Source: Experian

While Generation X is largely expected to carry the most debt, you may be surprised that millennials carry higher mortgage debt than Gen X. This is likely because millennials are just starting on their home-buying journey, while Gen X may be selling homes, paying off their mortgage, or simply in the last few years of their mortgages, thus lowering their balances.

Surprisingly, Generation Z is closely behind Millennials, indicating a likely uptick in mortgages as more individuals in this generation begin buying homes.

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Credit card debt by generation

One of the most expensive types of debt, credit card debt, saw large increases in younger generations and small decreases in older generations. Here’s what Experian shows the average credit card debt across generations.

Credit card debt by generation	2022	2023	Change
Generation Z	$2,692	$3,148	16.9%
Millennials	$5,309	$6,274	18.2%
Generation X	$7,781	$8,870	14%
Baby boomers	$6,134	$6,601	7.6%
Silent generation	$3,305	$3,434	3.9%

Source: Experian

Gen Z and Millennials increased their credit card debt from 2021 to 2023, increasing the balances by 26.2% and 174%, respectively -- the highest average credit card debt. Considering the widespread layoffs this year and the increase in inflation, these generations likely may have used credit cards to help pay for necessities from month to month. Consolidation of credit card debt might more a more common strategy as they manage their credit card accounts.

Older generations have higher balances, particularly Generation X and Baby Boomers. While these generations’ balances went down — perhaps because of money earned through stimulus relief and additional tax credits — their balances remain high compared to other generations.

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The bottom line

The past few years were anything but normal, with inflation shaking up the economy, how much we earn through household income, and our spending habits. Most Americans have some type of debt, whether it’s a mortgage for their home, car loan, student loan debt, or credit card balance. In 2023, most consumer debts increased from 2022 due to inflation, the price of cars increased, and forbearance loan balance to take advantage of low rates became more popular.

Consumer finances have significant shifts, with the average credit card balance rising across generations. Total debt for Americans has shown an upward trend, and many have considered balance transfer options to manage their average amount of debt. Effective repayment strategies and refinance options have become essential for many borrowers.

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Courtney Johnston is a freelance writer, specializing in finance, travel, and health. She has written for The Chicago Tribune, Benzinga, BestReviews, Mashvisor, Fundera, MoneyGeek, and The Culture Trip. She also teaches writing instruction at the University of Indianapolis. Courtney currently resides in Indianapolis.

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