How Much Debt the Average American Really Carries at Every Age
Debt is a way of life in American society. According to Debt.org, roughly 90% of Americans have at least some type of debt.
Debt isn’t necessarily bad. Home mortgages and investment debt, for example, are often cited as being “productive” forms of debt as they allow investors to acquire assets.
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But using debt properly requires conscious effort and management. Otherwise, it can spin out of control. Recent data from the Federal Reserve Bank of New York shows that total household debt grew to $18.8 trillion in the first quarter of 2026.
Averages can be misleading, however, and debt profiles change as Americans age. Here’s a look at how much debt the average American carries at every age, according to data compiled by Experian.
Debt in Your 20s: Student Loans, Car Loans and Early Credit Card Balances
Most Americans start taking on debt in their 20s. Between going to college, needing a car for work and starting to build a credit history, many Gen Z consumers have a variety of debt balances.
Experian reported that consumers ages 18 to 28 had average balances of $3,553 on credit cards, $21,027 in auto loans and $267,157 in mortgage debt (among those with mortgages). Gen Zers without mortgages had an average balance of $14,987.
The averages don’t mean that most 22-year-olds have mortgages. But younger consumers who do have mortgages tend to have larger balances simply because they are early in the repayment cycle.
The bigger issue for most 20-somethings is student loan debt. Federal Reserve data from 2024 shows that 42% of adults 18 to 29 who attended college had taken on student loan debt.
Debt in Your 30s and Early 40s: The Mortgage Years
Debt tends to get more complicated once you reach your 30s and 40s. These are decades when people often buy homes, raise children and upgrade their cars while still paying off student loans.
Experian’s data shows that the 29-to-44 age group, typically called millennials, averaged $7,068 in credit card debt, $25,471 in auto loans, $324,272 in mortgage debt and $26,304 in non-mortgage debt.
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Debt in Your 40s and 50s: Peak Balances, Peak Risk
Gen X held the highest average balances in several categories: $9,684 in credit card debt, $27,956 in auto loans, $287,928 in mortgage debt and $30,069 in non-mortgage debt.
This tends to be the highest-earning age group, so for many, debt isn’t a problem. However, once you reach your 50s, debt can become more serious, even if you earn a lot of money. At that age, the runway is much shorter if you get in over your head. If you don’t earn enough to steadily pay down your balances – or if you lose your job – you could endanger your retirement security.
Debt in Retirement: A Steady Drain
Ideally, you’ll be out of debt by the time you retire. If you’re not, you’re taking a gamble with your retirement for a number of reasons.
First, retirees tend to live off a fixed income, but debt has a way of growing. The combination of rising expenses and a flat income make for an unsustainable way of living.
Second, paying off debt, or even simply making minimum payments, could force you to take a withdrawal from your investments while markets are down. This could reduce the amount of income you earn in later years.
Experian reported that baby boomers have an average of $6,766 in credit card debt, $22,734 in auto loans and $197,090 in mortgage debt (among those with mortgages).
What Are the Fixes?
Debt is not inherently good or bad. A student loan in your 20s and a mortgage in your 30s might be a normal part of building long-term wealth. But debt can become dangerous when it is discretionary, like credit card debt. The risk also rises the older and closer to retirement you get.
One way to see where you stand is to check your debt-to-income ratio. This is simply the amount of your monthly debt payments divided by your gross monthly income. If debt payments approach 40% of your income, you don’t have as much flexibility to absorb a job loss, surprise bills or high inflation.
The bottom line is that a retiree with a low-rate mortgage and ample savings may be fine. But one carrying credit card balances, car payments and personal loans may be financially at risk, even with a decent nest egg.
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This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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