With over a trillion dollars in credit card debt now weighing down American households and mortgage payments for new homeowners surging by fifty percent, navigating personal finances has become an unprecedented high-wire act.
Key Takeaways
- As of Q2 2024, total U.S. household debt stood at $17.84 trillion, marking a 0.4% increase from the previous quarter
- In 2023, the average household debt in the U.S. was $104,215 per household, up 5.5% from 2022
- U.S. household debt-to-income ratio reached 130% in Q1 2024, the highest since 2008
- Average U.S. credit card debt balance reached $6,501 in Q1 2024, up 4.7% from prior year
- 49% of credit card holders carried a balance over $1,000 in 2023
- Total U.S. credit card debt outstanding was $1.13 trillion in Q2 2024
- Total U.S. student loan debt reached $1.74 trillion in Q2 2024, held by 45 million borrowers
- Average federal student loan debt per borrower was $38,375 as of 2024
- 43.5 million Americans have student debt, with total balance up 7% since 2020
- Total mortgage debt in U.S. households was $12.44 trillion in Q2 2024
- Average mortgage balance per borrower was $252,000 in Q1 2024
- Home equity debt (HELOC + HEL) totaled $1.43 trillion in 2023, up 6%
- Total auto loan debt hit $1.61 trillion in Q2 2024
- Average auto loan balance was $23,155 in Q1 2024, up 2.5% YoY
- Auto loan delinquency rate reached 1.9% for 60+ days past due in Q1 2024
Record U.S. household debt reaches $18 trillion with delinquencies rising.
Credit Card Debt
- Average U.S. credit card debt balance reached $6,501 in Q1 2024, up 4.7% from prior year
- 49% of credit card holders carried a balance over $1,000 in 2023
- Total U.S. credit card debt outstanding was $1.13 trillion in Q2 2024
- Average credit card interest rate hit 21.47% APR in May 2024
- 27% of Americans have credit card debt over $10,000 as of 2024
- Credit card delinquency rate rose to 3.2% in Q1 2024 for balances 30+ days past due
- Millennials hold 44% of total credit card debt, averaging $5,800 per person in 2023
- In 2023, 78 million Americans carried credit card debt averaging $7,321
- Credit card debt for Gen Z grew 28% year-over-year to $3,857 average in 2023
- 34% of cardholders maxed out at least one card in 2023
- Average household credit card debt was $7,321 in 2023, affecting 45% of households
- Credit card minimum payments consumed 9% of disposable income for debtors in 2023
- Women hold 40% more credit card debt than men on average ($6,900 vs. $4,900) in 2023
- In Q4 2023, credit card debt rose 8.5% to $1.08 trillion
- 22% of credit card users only make minimum payments, accruing $240/year extra interest on $1,000 balance at 20% APR
- Average age of credit card debtors is 42, with peak debt at $8,200 in 2023
- Credit card debt in Texas averaged $6,200 per cardholder in 2023
- 15% of credit card debt is carried by those with incomes under $25,000 annually in 2023
- Credit card utilization rate averaged 27% in Q1 2024
- Total credit card debt for baby boomers was $320 billion in 2023
- Credit card debt grew $45 billion in Q1 2024 alone
- 61% of Americans live paycheck-to-paycheck due partly to credit card debt in 2024
- Average credit card debt for ages 18-24 was $2,417 in 2023
- Credit card late fees averaged $41 per incident, with 12 million accounts charged in 2023
- In 2023, credit card debt service ratio was 4.5% of disposable income
Credit Card Debt Interpretation
America's credit card debt has become a high-interest treadmill, where we sprint faster just to watch the finish line recede.
Mortgage Debt
- Total mortgage debt in U.S. households was $12.44 trillion in Q2 2024
- Average mortgage balance per borrower was $252,000 in Q1 2024
- Home equity debt (HELOC + HEL) totaled $1.43 trillion in 2023, up 6%
- Mortgage delinquency rate was 0.6% for 30+ days past due in Q1 2024
- Average 30-year fixed mortgage rate reached 6.99% in 2023, increasing payments by 50% for new loans
- 38% of homeowners have mortgage debt over $300,000 in 2024
- Total residential mortgage debt grew $85 billion in Q2 2024
- FHA mortgage debt outstanding was $2.1 trillion in 2023
- Average mortgage debt for millennials was $285,000 in 2023
- Mortgage debt service ratio was 4.5% of disposable income in Q4 2023
- 15 million homeowners are "mortgage locked" with rates under 4% in 2024
- Jumbo mortgage average balance was $750,000 in high-cost areas 2023
- Mortgage forbearance requests dropped to 0.2% of servicers' portfolios in 2023
- Reverse mortgage debt totaled $128 billion for 1 million seniors in 2023
- Average mortgage term extended to 29 years for new loans in 2023
- Mortgage debt in Florida averaged $260,000 per borrower in 2023
- 67% of total household debt is mortgage-related as of 2024
- VA mortgage debt outstanding reached $1.5 trillion in 2023
- Subprime mortgage delinquency was 2.1% in Q1 2024
Mortgage Debt Interpretation
The great American dream is now, statistically speaking, a very long, meticulously leveraged, and surprisingly current monthly reality for most, though a worrying 38% are sailing in a boat that's over $300,000 underwater on paper but thankfully still floating on a sea of low interest rates.
Other Consumer Debt
- Total auto loan debt hit $1.61 trillion in Q2 2024
- Average auto loan balance was $23,155 in Q1 2024, up 2.5% YoY
- Auto loan delinquency rate reached 1.9% for 60+ days past due in Q1 2024
- Average new car loan term stretched to 69.1 months in 2023
- Personal loan debt totaled $222 billion in 2023, average balance $8,500
- 34 million Americans have auto loans, with 12% seriously delinquent in 2024
- Average used car loan APR was 11.42% in Q1 2024
- Total personal loan originations hit $200 billion in 2023
- Auto loan debt for subprime borrowers (VantageScore <600) averaged $20,000 with 15% delinquency in 2023
- Average personal loan interest rate was 12.65% for good credit in 2024
- 8.5 million households carry personal loans averaging $16,000 in 2023
- Auto repossessions rose 20% YoY to 1.7 million in 2023
- Buy now, pay later (BNPL) debt totaled $24 billion in transactions Q4 2023
- Average small personal loan ($5,000) accrues $1,200 interest over 24 months at 20% APR
- Auto loan debt per vehicle registered averaged $12,500 nationally in 2023
- Payday loan debt affects 12 million Americans annually, averaging $375 per loan with 400% APR
- Total other consumer debt (non-housing, non-student, non-auto) was $1.32 trillion in Q2 2024
- Medical debt in collections totaled $88 billion for 41 million adults in 2023
- Average boat loan balance was $45,000 at 7.5% APR in 2023
- RV loan debt outstanding reached $150 billion in 2024, average $35,000
- Personal line of credit debt averaged $12,300 for users in 2023
- Utility bill debt in arrears totaled $20 billion for 15% of households in 2023
Other Consumer Debt Interpretation
Americans are collectively driving their financial future into a pothole, one lengthy, high-interest monthly payment at a time.
Student Loan Debt
- Total U.S. student loan debt reached $1.74 trillion in Q2 2024, held by 45 million borrowers
- Average federal student loan debt per borrower was $38,375 as of 2024
- 43.5 million Americans have student debt, with total balance up 7% since 2020
- Student loan delinquency rate was 7.4% for loans 90+ days past due in Q1 2024, excluding paused loans
- Average bachelor's degree holder carries $37,853 in student debt in 2024
- Women hold 58% of total student debt ($929 billion) as of 2023
- 18% of student loan borrowers are 50+ years old, with average debt $41,500 in 2023
- Total private student loan debt is $128.3 billion in 2024
- Black college graduates have average student debt of $53,000, 1.5x whites' $28,000 in 2023
- Student debt payments consume 20% of monthly income for 25% of borrowers under 30
- 39% of borrowers have delayed major life events due to student debt in 2023
- Average repayment time for student loans is 20 years, with $45,000 average debt accruing $20,000 interest
- Parent PLUS loans total $112 billion, average $38,600 per borrower in 2024
- 7 million borrowers in default on $117 billion federal student loans as of 2023
- Graduate degree holders average $66,000 student debt in 2023
- Student debt per capita for ages 20-29 is $9,800 in 2024
- 11% of student debt is held by those earning <$30,000/year
- Average community college student debt is $13,000 upon graduation in 2023
- Student loan forgiveness applications exceeded 3.5 million for $150 billion in 2024
Student Loan Debt Interpretation
America's staggering $1.74 trillion student debt mountain has become a multi-generational shackle, disproportionately burdening women and minorities while forcing millions to delay their lives and resign themselves to paying for a degree well into their golden years.
Total Household Debt
- As of Q2 2024, total U.S. household debt stood at $17.84 trillion, marking a 0.4% increase from the previous quarter
- In 2023, the average household debt in the U.S. was $104,215 per household, up 5.5% from 2022
- U.S. household debt-to-income ratio reached 130% in Q1 2024, the highest since 2008
- By Q4 2023, total household debt service payments as a percentage of disposable income hit 9.9%
- In 2022, 35% of U.S. adults carried debt balances exceeding $10,000 across all categories
- Median household debt for Americans aged 35-44 was $135,800 in 2023
- Total U.S. household debt grew by $117 billion in Q1 2024 to $17.69 trillion
- As of 2023, the debt-to-GDP ratio for U.S. households was 75.3%
- In 2024, 44 million Americans have total debt over $100,000
- Household debt per capita in the U.S. averaged $52,000 in 2023
- Q3 2023 saw U.S. household debt increase to $17.51 trillion, a record high
- Average total debt for millennial households (born 1981-1996) was $124,000 in 2023
- U.S. household leverage ratio (debt-to-assets) was 16.4% in Q4 2023
- In 2022, total household debt for Gen Z averaged $16,283 per person
- By end of 2023, unsecured household debt totaled $5.1 trillion
- Household debt growth rate was 3.2% year-over-year in Q2 2024
- In 2023, 28% of U.S. households had debt exceeding their annual income
- Total household debt in the U.S. South region averaged $98,500 per household in 2023
- As of 2024, baby boomer household debt averaged $97,000
- U.S. household debt delinquency rate was 3.2% in Q1 2024 across all loans
- In Q4 2022, total household debt hit $16.96 trillion
- Average household debt for ages 45-54 was $142,300 in 2023
- Household debt composition showed 70% mortgage-related in 2023
- Total U.S. household debt increased 1.3% in 2023 to $17.5 trillion
- Per adult household debt was $66,000 in 2023
- In 2024, 40% of households carried over $50,000 in total debt
- Household debt-to-net-worth ratio stood at 12.5% in Q1 2024
- Gen X average household debt was $145,000 in 2023
- Total household debt in California averaged $120,000 per household in 2023
- U.S. household debt service ratio for young adults (under 35) was 11.2% in 2023
Total Household Debt Interpretation
The American dream seems to have been purchased on a payment plan where the average household now owes the financial equivalent of a modern serfdom.
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