The average American carries roughly $38,000 to $40,000 in consumer debt, though the exact figure shifts based on age, income, and which debts are counted

Consumer debt includes credit cards, auto loans, student loans, and personal loans — but not mortgages. The most recent data from the Federal Reserve and credit reporting agencies shows the median ranges between $38,000 and $40,000 per person, with significant variation. Someone in their 30s with student loans and a car payment will owe far more than a retiree with no outstanding balances. Income matters too: households earning over $75,000 per year tend to carry more debt in absolute dollars, though they also have more capacity to repay.

The number that matters most to you is not the national average but your own debt-to-income ratio — what you owe divided by what you earn monthly. A $30,000 debt is manageable on a $100,000 salary but crushing on a $30,000 one. The sections below break down where that average debt comes from and what the numbers look like across different age groups and loan types.

Key Takeaways

  • The median American consumer debt is between $38,000 and $40,000, excluding home mortgages, and varies widely by age and income.
  • Credit card debt averages around $6,000 per cardholder, auto loans around $20,000 to $28,000, and student loans around $37,000 for those who borrowed.
  • Adults in their 30s and 40s typically carry the most debt because they are paying off student loans, car payments, and mortgages simultaneously.
  • Your personal debt burden matters more than the national average — what counts is whether your monthly payments fit your income and budget.
  • Debt totals have grown steadily over the past decade, driven mainly by higher auto loan amounts and increased student loan balances.

How much debt Americans carry by type

Credit card debt is the smallest piece by balance but the most expensive by interest rate. The average cardholder with a balance owes around $6,000, though many people carry zero credit card debt and pull the average up. Credit card interest rates run 18% to 24% or higher, so even a $6,000 balance costs $90 to $120 per month in interest alone if you make only minimum payments.

Auto loans are the largest single debt for most Americans. The average auto loan balance is between $20,000 and $28,000, depending on the year and the source. New car prices have climbed steadily, and loan terms have stretched to 60, 72, or even 84 months to keep monthly payments affordable. Someone financing a $35,000 vehicle over 72 months at 6% interest pays roughly $580 per month.

Student loan debt averages around $37,000 for borrowers who took out loans, though not all adults have student debt. About 43 million Americans carry federal or private student loans. The median monthly payment is between $200 and $300, and repayment stretches across 10 to 25 years depending on the plan chosen. Student loans carry lower interest rates than credit cards — typically 4% to 8% for federal loans — but the sheer balance makes them the second-largest debt category overall.

Personal loans and other unsecured debt make up the remainder. These average $5,000 to $10,000 per person who carries them and are often used to consolidate credit card debt or cover unexpected expenses.

Debt levels by age group

Adults in their 20s average $20,000 to $25,000 in consumer debt, mostly from student loans and early-stage auto loans. Many in this group have not yet bought a car or have just graduated and begun repayment.

The 30 to 39 age group carries the highest debt load: roughly $50,000 to $60,000 on average. This group is juggling student loan repayment, a mortgage (which is not counted in consumer debt but still a payment), a car loan, and possibly credit card balances. This is also the stage when people are most likely to have taken out additional loans for home improvement or other major expenses.

Adults aged 40 to 49 average $45,000 to $55,000 in consumer debt. Some have paid down student loans, but others are still carrying them. Auto loans remain common, and credit card balances may have grown if income did not keep pace with spending.

Adults 50 and older show a sharp drop: roughly $20,000 to $30,000 in consumer debt on average. Many have paid off student loans and auto loans, though some carry credit card debt or have taken out personal loans. A significant portion of this age group carries no consumer debt at all.

How debt has changed over the past decade

Total consumer debt has grown from roughly $2.7 trillion in 2013 to over $4.2 trillion in 2023. That growth outpaced inflation and wage growth, meaning the average person is carrying more debt relative to their income than they were ten years ago.

Auto loan debt has grown the most in absolute terms. Average loan amounts have risen because vehicle prices climbed and loan terms stretched longer. In 2013, the average new car loan was around $25,000; by 2023, it had reached $40,000 or higher depending on the vehicle type and region.

Credit card debt has fluctuated but remains elevated. It spiked during the 2020 pandemic as people spent less on travel and dining, then rose again as inflation pushed prices up and interest rates climbed.

Student loan debt has plateaued in recent years after years of rapid growth. Federal student loan payments were paused from 2020 to 2023, which kept balances from growing but also meant many borrowers did not make progress on repayment. Balances have resumed growing as payments restarted.

What debt-to-income ratio means for your situation

Your debt-to-income ratio is the percentage of your gross monthly income that goes to debt payments. Lenders use this number to decide whether to approve you for a mortgage, auto loan, or credit card. A ratio under 36% is generally considered manageable; above 43% is considered high risk.

To calculate yours, add up all your monthly debt payments — credit card minimums, auto loan, student loan, personal loan, and any other regular payments — and divide by your gross monthly income before taxes. If you earn $5,000 per month and your debt payments total $1,500, your ratio is 30%, which is healthy. If your payments total $2,500, your ratio is 50%, which is unsustainable and will make it hard to borrow more or handle an emergency.

The national average consumer debt of $38,000 to $40,000 means little if you earn $150,000 per year — that debt is easily manageable. The same debt on a $40,000 salary is a serious burden. Focus on your own ratio rather than comparing yourself to the average.

Why the average keeps rising

Consumer debt grows faster than wages because prices for major purchases — cars, education, housing — have outpaced income growth. A new car that cost $25,000 in 2010 costs $40,000 today, but median wages have not doubled. People borrow more to afford the same lifestyle.

Interest rates also matter. When the Federal Reserve raises rates, credit card interest rates climb when ready, but auto loan and mortgage rates rise too. Higher rates mean higher monthly payments on new debt, which pushes people to borrow more to cover the gap between income and expenses.

Credit availability has also expanded. Credit card limits are higher, auto loans are easier to obtain, and personal loans can be taken out online in minutes. The ease of borrowing means more people carry debt than in previous decades.

Frequently Asked Questions

Is $40,000 in consumer debt normal?

It is close to the national average, but "normal" does not mean healthy for your situation. What matters is whether your monthly payments fit your budget and income. Someone earning $100,000 per year can comfortably carry $40,000 in debt; someone earning $35,000 cannot. Calculate your debt-to-income ratio to see whether your debt load is manageable.

Why do people in their 30s have the most debt?

Adults in their 30s are typically paying off student loans from college, financing a car, and carrying a mortgage — all at the same time. They have also had time to accumulate credit card balances if they spent more than they earned. This age group is in the peak borrowing years before they begin paying down debt in their 40s and 50s.

Does the average include people with no debt?

The figures cited here are medians or averages across all adults, which includes people with zero debt. That is why the average is lower than what many people actually carry. If you only counted people with at least one debt, the average would be higher. About 80% of Americans carry some form of consumer debt.

How much of the average is from student loans?

Student loans make up roughly 35% to 40% of total consumer debt nationally. However, not all adults have student loans — only about 43 million people do. For those who borrowed, the average balance is around $37,000. If you did not attend college or paid cash, student debt does not affect your personal total.

What is considered high consumer debt?

A debt-to-income ratio above 43% is generally considered high risk by lenders. In practical terms, if your monthly debt payments exceed 43% of your gross income, you are carrying more than most lenders will approve for additional credit. If your ratio is above 50%, you may struggle to cover emergencies or unexpected expenses.