Consumer debt in the U.S. hit a record $18.8 trillion at the end of 2025, according to data from the Federal Reserve Bank of New York that incorporated all types of debts, including credit card bills, auto loans and mortgages.
That works out to an average of $154,152 per household.
Borrowing is commonly part of a long-term financial plan, whether it's for an education or a place to call home. But if you're not able to make regular, in-full payments, it can derail your financial future.
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How much Americans owe, by age
The average debt balance shifted only slightly year-over-year, from $105,056 in Q4 2024 to $154,152 in Q4 2025.
| Generation | Average household debt (2025) | Average household debt (2024) | Percentage change |
|---|---|---|---|
| Generation Z (18-28) | $34,328 | $31,856 | +7.80% |
| Millennials (29-44) | $132,280 | $130,154 | +1.60% |
| Generation X (45-60) | $158,105 | $159,390 | -0.80% |
| Baby boomers (61-79) | $92,619 | $94,561 | -2.10% |
| Silent Generation (80+) | $38,460 | $38,893 | -1.10% |
Generationally, it was a different story: Gen X (born 1965–1980) had the highest average debt load, but it declined slightly from 2024, as more people paid off mortgages and finished funding their children's college educations.
The largest year-over-year increase was among members of Gen Z (born 1997-2012), who are now graduating from college and entering their homebuying years.
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7.99%–35.99%
Up to $50,000
9.95% to 35.99%
$2,000 to $35,000
Average mortgage debt, by age
Typically, mortgage balances peak among younger, newer homeowners, who haven't been able to pay down much of their loans yet.
But coming of age in a tight housing market, many members of Gen Z have delayed homeownership, lowering their average. In 2025, the average age of a first-time homebuyer was 40, a record high.
Average auto loan debt, by age
Because of the need for pricier, more reliable vehicles and multiple vehicles in one household, Gen X and Millennials have the highest average auto debt.
According to a Lending Tree analysis, Gen X has the highest average monthly payment at $594, followed by Millennials at $589.
Although their debt load was lower, Gen Z faced higher interest rates due to their lower incomes and limited credit histories.
Average student debt, by age
Americans owe roughly $1.83 trillion in student loan debt, according to Federal Student Aid data from Q4 2025. At $47,857, the six million-plus borrowers aged 50 to 61 have the highest average balance.
How to get out of debt
If you find yourself struggling to keep your head above water financially, there are several strategies for getting out of debt.
- Make more than the minimum payment on any credit cards or other interest-bearing accounts. Otherwise, the APR can balloon and overtake your original balance.
- If you're paying off multiple creditors, try the avalanche method: Put any additional money toward the account with the highest APR and keep making minimum payments on your other balances. It can be a lengthy process, but it will save you the most on interest. Once that account is settled, move on to the bill with the second-highest APR and so on. Think you'd do better with some early victories? Use the snowball method and knock off your smallest balance first.
- If you don't have extra money to put toward your bills, a debt consolidation loan can combine multiple bills into a single monthly payment at a lower, fixed interest rate.
- Debt relief companies negotiate with your creditors to lower your balances. Your credit score will take a hit and they can charge up to 25% of your total enrolled balance, but for consumers who are severely in the red, it may be worth it.
Carrying debt is normal, but staying on top of it will protect your credit score and ensure you have access to financial products at lower rates for years to come.
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According to National Debt Relief, clients who complete its debt settlement plan can reduce their enrolled debt by an average of 20% to 25%, after fees.
Freedom Debt Relief has resolved over $20 billion in outstanding debts since 2002. It offers free credit card debt relief consultations.
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