As of the close of 2022, American household debt reached an unprecedented $16.9 trillion, marking a substantial increase of $2.75 trillion since 2019, as reported by the Federal Reserve.
Credit card debt stands at $986 billion, surging past its pre-pandemic peak of $927 billion. Mortgages contribute significantly to this financial landscape, with an outstanding balance of $11.92 trillion, followed by vehicle loans at $1.55 trillion and student loans at $1.60 trillion.
The latest statistics on American debt paint a concerning picture, particularly regarding younger generations who are facing an accelerated slide into delinquency, notably concerning credit cards and auto loans. Delinquency rates among younger borrowers have now surpassed pre-pandemic levels, signifying a growing issue. While delinquency rates for older borrowers are also on the rise, they have yet to reach the levels observed before the pandemic.
- 18-29-year-olds: Total debt of $69 billion, with an average of $12,871 per individual.
- 30-39-year-olds: Total debt of $1.17 trillion, averaging $26,532 per person.
- 40-49-year-olds: Total debt of $1.13 trillion, translating to an average of $27,838 per individual.
- 50-59-year-olds: Total debt of $98 billion, with an average per capita debt of $23,719.
- 60-69-year-olds: Total debt of $64 billion, leading to an average non-mortgage debt of $16,661 per person.
- 70 and older: Total debt of $36 billion, with an average per capita debt of $9,827.
These figures underscore the significant financial challenges faced by Americans across different age groups, with a particular spotlight on the rising burden of debt among younger individuals.
Reference
Debt.org. (2023). Americans in Debt by Age, Demographics, and Other Factors. https://www.debt.org/faqs/americans-in-debt/demographics/
