Average American Household Debt in 2023: Facts and Figures

American households carry a total of $17 trillion in debt as of the first quarter of 2023, and the average household debt is $101,915 as of the end of 2022.

How is that debt split between mortgages, auto loans, credit cards, and other types of loans?

The answers to questions like these can give us insight into the financial state of the average American household. The Motley Fool Ascent pulled together as much data as we could find on Americans’ average household debt in 2023 to provide an overview into the debt Americans carry.

Keep reading for more detailed statistics on each type of debt, including comparisons of average debt over time and breakdowns by race, age, and more.

Key findings

Editor’s note: Data is the most recently available. Some surveys are not carried out annually.

Inflation, supply chain issues, and Americans’ finances in 2023

The economy has roared back from the COVID-19 pandemic, bringing with it supply chain issues and inflation that have stressed Americans’ wallets.

Throughout 2022, inflation reached levels not seen since the late 1970s, adding to the cost of goods already pushed higher by global supply chains snarled by shortages and the ongoing COVID-19 pandemic.

The result: Average debt is up in nearly every category compared to 2020. This includes total household debt, credit card debt, mortgage debt, and auto loan debt.

The percentage of personal loans and auto loans in hardship are also above 2020 levels.

Despite turning the corner on the COVID-19 pandemic, stress continues to impact the finances of American households.

Average consumer household debt in 2023

The New York Fed’s quarterly Household Debt and Credit Survey (HHDC) shows that total consumer debt stands at $17 trillion as of the first quarter of 2023. That’s a record high.

According to Experian, average total consumer debt in 2022 was $101,915. That’s up nearly 10% from 2020, when average total consumer debt was $92,727.

Average American debt payments in 2022: 9.7% of income

The St. Louis Federal Reserve tracks the nation’s household debt payments as a percentage of household income. The most recent debt payment to income ratio, from the fourth quarter of 2022, is 9.7%.

That means the average American spends more than 9% of their monthly income on debt payments. Despite debt overall increasing, Americans are still spending less of their income on debt than most of the 2000s.

Average credit card debt in 2023

According to the latest Household Debt and Credit survey results from the New York Fed, Americans owe $986 billion in credit card debt as of Q1 2023. That’s up from $856 billion in Q4 2021 and $819 billion in Q4 2019.

This could be because Americans are relying more on their credit cards due to inflation.

So what does that mean for individual credit card holders?

According to Experian, Americans had an average of $5,910 in credit card debt in the third quarter of 2022. Americans carry less debt on store credit cards, with an average of $1,110.

Average revolving credit card balance: $6,271

A revolving credit card balance is one that persists between payments — in other words, it’s what people pay interest on. It’s one of the most important figures when looking at credit card debt.

The latest figures reported on revolving credit card balances come from the 2019 SCF, which took place before COVID-19 threw Americans’ finances into a tailspin. But at the end of last year, the average (mean) revolving balance for cardholders who had a revolving balance was $6,271.

As we know, outliers can skew means, so we also report medians where we can. The median amount of revolving credit card balances in 2019 was $2,700. So some cardholders out there are revolving a lot more than $6,200.

Here’s how the mean and median revolving credit card debt differ among some demographic groups:

Average household revolving credit card balance by race

Delinquent credit card payments: 1.73%

Americans remained surprisingly steady in paying their credit card bills on time. In the fourth quarter of 2022, the delinquency rate of credit card loans from commercial banks was 2.25%, according to the Federal Reserve.

After hitting a record low in the second quarter of 2021, the delinquency rate of credit card loans from commercial banks has slowly increased, although it remains well below levels over the past 30 years.

Average mortgage and HELOC debt in 2023

Mortgage debt makes up 70% of American consumer debt. That number has risen consistently since mid-2013 and has recently accelerated as home prices hit record levels.

How much mortgage debt does the average American have? The average mortgage debt among Americans is $236,443, per Experian’s 2022 State of Credit Report.

That’s up from the average mortgage debt reported by Experian in 2022: $220,380.

Average mortgage rate in 2023: 6.37%

The average mortgage rate for the first quarter of 2023 is 6.37%, down from 6.66% in the fourth quarter of 2022.

Mortgage rates have been rising since 2022 after hitting lows in 2020 and 2021.

Average mortgage payment: $1,427

According to the U.S. Census Bureau’s American Housing Survey, the average (mean) mortgage payment in 2021 was $1,427, while the median was $1,001.

Average HELOC amount: $41,045

Based on data from Experian, the average value of a home equity line of credit in 2022 was $41,045.

Average auto loan debt in 2023

Auto loan debt has been creeping up over the past several years and hit $1.56 trillion in the first quarter of 2023.

According to the 2019 SCF, the mean auto loan balance was $17,553 and the median was $13,000.

Average new car payment: $716

The average monthly payment on a loan for a new car was $716 in the fourth quarter of 2022, according to Experian. Monthly payments on loans for new cars, by credit score, are as follows for the fourth quarter of 2022:

• Deep subprime (300-500): $700
• Subprime (501-600): $746
• Nonprime (601-660): $753
• Prime (661-780): $723
• Super prime (781-850): $683
• All: $716

Average used car payment: $526

The average monthly payment on a loan for a used car was $526 in the fourth quarter of 2022, according to Experian. Monthly payments on loans for used cars, by credit score, are as follows for the fourth quarter of 2022:

• Deep subprime (300-500): $524
• Subprime (501-600): $542
• Nonprime (601-660): $541
• Prime (661-780): $519
• Super prime (781-850): $505
• All: $526

Auto loans in hardship in 2023: 3.85%

According to TransUnion, 3.85% of auto loans were in hardship in March 2023, up from 3.33% the previous year.

TransUnion says that a loan is in hardship if the borrower has a deferred payment, forbearance program, frozen account, or frozen past due payment.

Rising vehicle prices and overall inflation may be responsible for a higher percentage of auto loans being in hardship compared to previous years.

Average personal loan debt in 2023: $11,397

Personal loans are versatile financial products. They can be used for a variety of financial needs, including weddings, renovations, vacations, or debt consolidation.

According to TransUnion, the average unsecured personal loan amount in January 2023 was $8,129, up from $7,506 in June 2021.

The average balance per consumer as of March 2023, however, is $11,397, indicating that many people who have one unsecured personal loan have at least one more. That’s higher than the level recorded per consumer in March 2022, which was $10,029.

Average personal loan interest rate in 2023: 11.48%

The St. Louis Federal Reserve tracks the average unsecured personal loan interest rate. In February 2023, the average interest rate for a 24-month personal loan was 11.48%, the highest since November 2007.

Personal loans in hardship in 2023: 3.84%

In March 2023, 3.84% of unsecured personal loans were in hardship. That’s up from March 2022, when 3.23% of unsecured personal loans were in hardship, according to TransUnion.

TransUnion says that a loan is in hardship if the borrower has a deferred payment, forbearance program, frozen account, or frozen past due payment.

American medical debt

Medical debt can be difficult to track. However, it’s clear that it’s a growing problem.

According to The Urban Institute, 13% of Americans — over 43 million people — had medical debt in collections in 2022. That number is higher in communities of color, at 15%.

Some states have significantly higher numbers, too. For example, 24% of West Virginians have medical debt in collections.

The median debt also varies quite a bit. In the United States overall, the median medical debt in collections is $703. In Wyoming, Utah, Wisconsin, and Florida, that number is over $900.

While statistics are scarce, it seems likely that rising healthcare costs — especially during a global pandemic — have pushed these numbers higher in recent years.

Bankruptcy, delinquencies, charge-offs, and foreclosures

When Americans can’t handle their debts, we see foreclosures, bankruptcies, delinquencies, and charge-offs. When those numbers go up, it’s clear that Americans’ personal finances are in trouble.

So what happened this year?

Personal bankruptcy statistics

According to the American Bankruptcy Institute’s most recent release, there were 89,224 declarations of bankruptcy in the United States by the end of March 2022.

Interestingly, that’s 17% less than the number we saw at the same point in 2021.

Personal bankruptcies by state

Here are the 2022 bankruptcy filings through March per capita of all 50 states and D.C. The total number of year-to-date (YTD) personal bankruptcy filings per capita in the country as a whole is 1.38.

Charge-off and delinquency rates on consumer loans in 2022: 2.08%

The Federal Reserve Board collects statistics on charge-offs and delinquencies by loan type. Here’s how they’ve changed over the past 20 years:

Charge-offs and delinquencies for consumer loans and credit cards were up in Q4 2022 compared to Q4 2021. Real estate loan charge-offs and delinquencies were down.

The delinquency and charge-off rate for consumer loans (which includes credit cards) was 2.08% in Q4 2022, while the overall rate, which includes real estate and commercial loans, was 1.19%.

Foreclosures in 2023

There were 32,977 foreclosures in April 2023, according to ATTOM Data. That’s up 8% from April 2022 but down 10% from March 2023.

Average debt by state

Residents of Georgia have the most non-mortgage household debt per person, according to data analyzed by LendingTree.

At the end of 2022, Georgia residents had $45,778 in non-mortgage household debt. Close behind in terms of non-mortgage debt held going into 2023 are residents of Maryland ($45,663), Texas ($44,850), North Dakota ($44,271), and Mississippi ($43,345).

Minnesota residents held the least non-mortgage debt at the end of 2022, with $35,201 outstanding. Joining Minnesota with the least non-mortgage debt outstanding per person is Oregon ($35,249), Indiana ($36,001), California ($36,106), and South Dakota ($36,479).

Looking at mortgage debt per person in each state tells a different story.

California residents brought the most mortgage debt into 2023, with an average of $161,562 owed per person. Washington ($154,333), Hawaii ($145,833), Colorado ($145,056), and Utah ($144,409) followed.

Unsurprisingly, the average house prices in those states are among the most expensive in the country.

Mississippi residents carried the least amount of mortgage debt into 2023, with an average of $50,664 per person. West Virginia ($61,529), Arkansas ($60,866), Kentucky ($56,922), and Oklahoma followed ($51,024).

Average buy now, pay later monthly payment

The median monthly buy now, pay later (BNPL) payment made in 2022 is between $51 and $100, according to a survey from The Ascent, a Motley Fool service.

Using buy now, pay later financing is akin to taking out a loan. While most BNPL providers say they don’t charge interest, some do, and late fees can be steep while negatively impacting your credit score. And unlike using a credit card, making BNPL payments on time doesn’t boost your credit score.

Fifty percent of Americans have used BNPL and, worryingly, a third of those users have made a late payment or incurred a late fee.

The popularity of buy now, pay later took off between 2020 and 2021. As inflation continues to rise and more merchants offer BNPL financing, usage may tick up.

Americans are using buy now, pay later to finance a range of purchases. Forty-seven percent say they’ve used BNPL to buy electronics and 43% say they’ve financed clothing and fashion buys with BNPL. Roughly a quarter of Americans have used BNPL to pay for groceries.

Paying off debt

It may seem like Americans are swimming in too much debt to get out of, but there are ways to pay off debt.

The first step towards paying off debt is understanding the total amount of debt you have. From there you can determine what type of debt you hold, like credit card debt, a mortgage, or auto loan. Then it is important to note how much you owe, what the interest rate is, and what the minimum payment amount is for each type of debt you own.

With that information, you should be able to figure out how you can fit paying off debt into your personal budget. Our debt snowball calculator can help you organize your debts and explore repayment options.

Debt payoffs apps can help you keep track of all those numbers plus offer useful budgeting features like debt calculators and expense tracking.

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