The Growing Trend of Personal Debt in America: What You Need to Know

The average personal debt levels in America saw a slight increase last year, with the average person owing nearly $23,000, excluding mortgages. This data comes from a recent study conducted by financial services company Northwestern Mutual, which revealed that the average personal debt per individual rose from $21,800 in 2023 to $22,713 in 2024.

The study also highlighted that 66% of respondents reported holding some form of debt, with credit cards and auto loans being the primary sources of debt for most individuals. Credit card debt alone accounted for a record-breaking $1.13 trillion of the overall U.S. household debt, according to data from the New York Federal Reserve.

When broken down by generation, Gen Xers and millennials were found to carry the most personal debt, with average debt levels of $28,670 and $24,833, respectively. Despite this, more than 60% of respondents from these age groups admitted to not having a specific plan to pay off their debt.

The study also highlighted the impact of inflation and interest rates on debt levels, with more Americans uncertain about how they will pay back their debts compared to previous years. In fact, the share of adults who are unsure about how much they can afford to spend versus how much they need to save for the future increased from 26% to 34%.

Overall, the study paints a concerning picture of Americans’ personal debt levels and their ability to manage and pay off their debts in the face of economic challenges. As inflation and interest rates continue to rise, it is crucial for individuals to have a solid plan in place to address their debt and financial obligations.