The average American’s personal debt exclusive of mortgages is $21,800, which is $8,000 less than what people reported in 2019. But underneath that topline number is a second story, about two very different experiences with debt. More than a third (35%) of Americans say they’re carrying close to or at their highest level of debt ever. At the same time, more than four in ten (43%) U.S. adults who have personal debt say they’re currently carrying close to or at their lowest level of debt ever. These are the latest findings from Northwestern Mutual’s 2023 Planning & Progress Study.
“At a time of high inflation and economic uncertainty, it’s encouraging to see personal debt levels have held relatively steady year-over-year, and even ticked down a little,” said Christian Mitchell, chief customer officer at Northwestern Mutual. “That said, it can be a slippery slope between manageable debt and runaway debt so it’s an important time to remain extra vigilant about planning and spending.”
Americans’ Personal Debt, Exclusive of Mortgages |
|
2023 |
$21,800 |
2022 |
$22,354 |
2021 |
$23,325 |
2020 |
$26,621 |
2019 |
$29,800 |
The primary source of personal debt in America can be found right in people’s wallets. According to the study, credit cards account for more than double any other single source of personal debt.
Top Source of Personal Debt |
2023 |
Credit cards |
28 % |
Car loans |
12 % |
Medical debt |
7 % |
Home equity loans / lines of credit |
6 % |
Personal education loans |
5 % |
Educational expenses for children / family members |
3 % |
People who carry personal debt say 30% of their monthly income goes toward paying it off, and most also expect to remain in debt for years.
How Long People Expect to Be in Debt |
2023 |
1-5 years |
49 % |
6-10 years |
21 % |
Read the full article here