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The Federal Reserve Bank of New York announced that U.S. citizens hit a new milestone: $1.23 trillion in credit card debt as of Q3 2025. And when you look at overall debt, the number soars to an eye-watering $18.59 trillion, with the typical American household having $105,056 in debt.
Taking a closer look at how debt is tracked by age can help as you examine your own situation and think carefully about how you will manage your own debt load. Keep reading to learn more.
Key Points
• The type of debt and its purpose shift with age: earlier life stages are more about education and vehicles; later stages are often about homes and long-term financing.
• Average debt per person is lowest for both the younger and older generations.
• People ages 40-49 tend to carry the highest average debt, largely because of home mortgages and other long-term loans.
• Not all debt is bad debt. Mortgages and student loans are considered better forms of debt than credit cards and auto loans.
• If you’re looking to reduce or pay off your debt, consider using the debt avalanche method, the debt snowball method, or a personal loan for debt consolidation.
Breakdown Of Average Debt By Age
Here, you’ll learn more about the latest data and what it reveals about how Americans are using credit. Overall, people in their high earning years (early middle age) carry the most debt, typically in the form of mortgages, while younger families carry more student loan debt. Let’s take a closer look.
Age 18-29
Total debt: $1.05 trillion
Average per person: $19,972
During this stage of life, debt typically comes from a mix of student loans, credit cards, and auto loans, not mortgages, because many in this age group haven’t yet bought homes. The relatively high levels of education-related and personal debt for these younger adults highlight the financial burden they face early in their careers.
Age 30-39
Total debt: $3.89 trillion
Average per person: $84,565
Adults aged 30-39 carry a significantly higher debt load than younger cohorts, with a per-capita average of around $84,565, according to Federal Reserve–based data. By this age, many people have transitioned into more long-term financial obligations: mortgages make up a large share of their debt, as they often purchase homes and take on large loans to finance them.
Credit card debt in this age bracket is climbing, too, with 80% having a credit card (ages 30-44) and 53% carrying a balance. These increases show that people in this age range are taking on more debt — likely because they’re earning more and doing more: they’re settling into their careers, buying houses, and starting families.
Age 40-49
Total debt: $4.76 trillion
Average per person: $111,148
People aged 40-49 carry the most debt burden of all age groups, with an average per-capita debt of $111,148. At this stage, much of their debt stems from long-term obligations like mortgages, as many in this age group have purchased homes and are building significant home equity, as well as from auto loans and credit card balances.
Despite this high level of indebtedness, the New York Fed’s reports show that serious delinquency (90+ days past due) rates for major debt categories like mortgages remain relatively stable among this cohort. However, the concentration of debt also reflects that 40- to 49-year-olds are in a peak earning and borrowing phase — balancing large housing loans, potential family expenses, and other financial priorities.
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Age 50-59
Total debt: $4.02 trillion
Average per person: $97,336
This age bracket continues to see drops in overall debt. They owe less on their mortgages and even less on education loans. With fewer large expenses related to education, housing, and family rearing, households in this age bracket can focus on paying down debt and building savings as they prepare for retirement.
Age 60-69
Total debt: $2.73 trillion
Average per person: $67,574
Households in this age range are likely beginning to or have begun their retirement. At this point, they are probably tightening their budgets to live on retirement savings, pensions, and social security. As a result, they’re spending — and borrowing — less.
While average balances may still be substantial, most of these older borrowers continue to manage repayments. For many in their 60s, carrying this level of debt can be part of a long-term wealth management strategy — balancing ongoing liabilities while preserving or building on accumulated assets.
Age 70 and up
Total debt: $1.73 trillion
Average per person: $43,142
Seniors in this bracket are most likely retired and living on a fixed income. While there are fewer and lower levels of borrowing in this bracket compared to the others, one report says that more than 97% of those ages 66-71 do still carry some form of debt. While much of this is accounted for by small mortgages, some of it may be related to high cost of medical care, senior living facilities, and credit card debt.
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How Much Debt Is Too Much?
Americans have clearly become accustomed to borrowing in order to move through their everyday lives. In fact, financing is often a necessary step in order to get the graduate level training needed for a professional career or to buy a home that will become a financial asset. But are we culturally becoming too comfortable with borrowing larger and larger sums of money? And how do you know when you’ve over-extended yourself?
One way to find out if you’re carrying too much debt is to calculate your debt-to-income ratio by dividing your monthly debt payments by your monthly income. For instance, if your total debt payments (student loan, credit card, mortgage, car loan, etc.) come to $2,500 per month and your after-tax monthly income is $8,000, your debt-to-income ratio would be 31.25%. That means that a little over 31% of your income goes straight to your debts.
As a rule of thumb, the lower your debt-to-income ratio, the better: a ratio of around 30% is considered very good, while a ratio of 40% or higher could threaten your financial security.
Recommended: Which Credit Bureau Is Used Most?
How to Take Control Of Your Debt
Carrying debt can be extremely stressful, especially if it keeps you from being able to save enough to feel financially secure. Here are some solutions if you’re looking for a strategy for paying down your debt.
Make a Debt Inventory
Start by listing out all of your outstanding debts and sorting them based on whether they are “good” debts (debts taken out to help build wealth or income potential like mortgages and student loans) or “bad” debts (high-interest loans, credit cards, and auto loans). The bad, or high-risk debts, will be the ones you’ll want to take on first.
Create a Debt Pay-Down Goal
Creating a debt pay-down goal gives you a clear roadmap for reducing what you owe. Two popular strategies that can help you get there are the debt avalanche and the debt snowball methods.
With the debt avalanche method, you focus on paying off the debts with the highest interest rates first, which minimizes the total interest you’ll pay over time. The debt snowball approach, on the other hand, prioritizes paying off your smallest balances first, giving you quick wins and motivation to keep going. Whichever method you choose, setting a specific, achievable goal helps you stay focused and build momentum toward becoming debt-free.
Consider Consolidating Your Debt
If you are carrying a high credit card balance or other high-interest debt, but have a steady income and good credit, you may be able to make your repayment simpler and cheaper by taking out a lower-interest personal loan to pay off those debts. You can’t use an unsecured personal loan to consolidate student loan debt, but it can be immensely helpful if you’re trying to get out from under credit card debt.
Recommended: Can You Refinance a Personal Loan?
The Takeaway
Many Americans have debt, with younger people having more student debt and those in midlife having more in the form of mortgages.
If you’re concerned about managing your debt (especially from credit cards), you might consolidate your high-interest debt into one monthly payment, which might offer a lower interest rate that could help you get out of debt sooner.
Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.
FAQ
How much does the average American have in debt?
As of 2024, average household debt sits at $105,056. This may include mortgage debt, credit card debt, auto loans, student loans, personal debt, and more.
How many people have $10,000 in credit card debt?
Roughly one in four Americans (25%) who carry credit card debt owe more than $10,000. Keep in mind that about 46% of Americans have credit card debt, in general.
What percent of Americans are debt-free?
According to data from the Federal Reserve, about 23% of Americans are debt-free. Keep in mind, though, that not all debt is considered bad. Having mortgage debt, for example, is much better than carrying credit card debt.
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