This is the average debt of an American in 2025: Check out if you owe more or less

Total US household debt nationwide grew to over $18 trillion by the end of 2024 according to Federal Reserve data published recently in its Quarterly Report on Household Debt and Credit. The vast majority of household debt, nearly 70%, consisted of mortgage debt that increased by a little less than 3% year-over-year to $12.6 trillion. The next biggest sources of debt for Americans after mortgages were auto debt, student loans and credit card debt, which saw the biggest overall rise at over 7%.

According to Experian, average household debt in 2024 was $105,056. However, that headline number doesn’t take into account what each borrower’s financial situation is. You may owe more, but that amount represents a lower percentage of your income or vice versa. And then one should consider how much interest they have to pay on that debt.

Depending on both factors, they may tell a better story of what your financial health is. Here’s a breakdown of the numbers to find out where you stand.

You may also be interested in: The Japanese journalist from 1904 teaching the world how to save in 2025: welcome to the Kakeibo method

How your debt compares to the average American in 2025

Americans are still dealing with inflation which while it has come down significantly remains above the Federal Reserve’s 2% target. This has helped drive the increase in US household debt. The average debt across several categories for American households according to Experian data from Q3 2024 is as follows:

You may have noticed that the math does exactly add up. This is because not all consumers have each type of debt explains Experian. Also, these are averages, so one borrower may have double the national average while another has just half that.

For example, those with the lowest credit scores on had less than half the debt carried by the average US household. Meanwhile, those with the highest credit scores were carrying more than 50% more than the average. Both these groups saw on average an increase in the amount of debt they took on from the previous year whereas all other categories saw the average reduce year-over-year.

Keep track of your debt-to-income ratio and interest rates

Balancing how much debt you have compared to your income and what kind of interest you are paying will go a long way to helping keep yourself out of financial troubles. On the one hand, the higher the interest you are paying, even if your debt is relatively lower than the average, can cause the principal to balloon, especially on credit cards, which tend to have higher interest rates, if you let the balance roll over.

On the other, you don’t want your monthly debt payments to exceed more than 35% of your monthly income. That said, according to experts, when it comes to budgeting, you don’t want your monthly expenses for needs, which includes housing and transportation, to exceed 50% of your income. The rest of your income should be split 30% for your wants and 20% to squirrel away as savings under the 50-30-20 rule.

Get your game on! Whether you’re into NFL touchdowns, NBA buzzer-beaters, world-class soccer goals, or MLB home runs, our app has it all.

Dive into live coverage, expert insights, breaking news, exclusive videos, and more – plus, stay updated on the latest in current affairs and entertainment. Download now for all-access coverage, right at your fingertips – anytime, anywhere.