Average American Debt by Age, US State, Credit Score and Type in 2025

Overall Average Debt Balances Among the States

At the state level, balances were largely unchanged in most states. As in prior years, however, there remains a wide spread: Average consumer debt levels range from $63,000 in West Virginia to $155,000 in Colorado. The explanation for this disparity lies primarily in the fact that average total debt per consumer is largely a function of each area's cost of living, much of which is based on residential home prices.

Average Consumer Debt Total by State, 2024-2025

Average Consumer Debt Total by State, 2024-2025

Source: Experian from June of each year

Overall Average Debt Balances by Credit Scores

Average debt levels grew slightly in 2025 for those with FICO^® Scores^{☉ Θ} below 670 (fair and poor credit scores) and those with scores of 800 or greater, although for different reasons. Those with exceptional credit may be leveraging that to finance, say, a new electric vehicle (EV) that's now in reach, in part because of their excellent credit scores.

Meanwhile, not only are those with fair or poor credit scores paying more in interest than other borrowers in many cases, but their relatively lower scores effectively shut them out of many chances to refinance their loans at lower rates compared to those with good credit.

Source: Experian data from June of each year

The majority of consumers—those with FICO credit scores from 670 to 799—saw their average total debt balances decline in 2025. Some of the explanation is demographic: Older consumers not only have longer credit histories, but they also tend to have fewer expenses as they age and nests empty.

Source: Experian data from June of each year

Since 2020, the percentage of consumers with very good or exceptional FICO^® Scores, ranging from 740 to 850, grew from 46.5% of all consumers in 2020 to 50.3% in 2025. This could be a product of economic stimulus during the pandemic, an aging population with longer credit histories and nearly full employment levels. These factors and more have allowed consumers to gradually move into higher credit score ranges.

Average Total Consumer Debt Balance by Age

The largest growth in average debt levels is, and will likely continue to be, among younger consumers. Generation X is finally seeing average debt levels decline in 2025, although they're still carrying the most debt per consumer among all generations. Although the increase among Generation Z consumers is a large jump in percentage terms, their overall average balance remains low in dollar terms (for now, at least).

Source: Experian data from June of each year; ages as of 2025

But even though Gen Z debt levels are currently modest, they only need to look at their millennial elders to see what may be in store for them in the near future. As they age, more Gen Z consumers will be grappling with financing their first auto purchases and paying off student loan balances in addition to other household debts.

Total US Consumer Debt in 2025

U.S. consumers collectively owed $18.33 trillion in total debt as of June 2025, according to Experian data. That's up 3.2% from the $17.76 trillion they owed in June 2024.

The change in total consumer debt is more or less in line with recent years, when debt grew at roughly the same rate as overall inflation. But, as will be illustrated in the sections below, not all types of consumer debt are growing at the same rate.

Source: Experian data from June of each year

Total American Consumer Debt Rises 3.2% to $18.33 Trillion

Unlike last year, where several categories of total debt balances declined, balances increased among every debt category except retail store cards in 2025.

Interest rates were steady for most of 2025, until September when the Federal Reserve cut the key interest rates that tend to govern many consumer loans. Prior to the 0.25 percentage point cut in September, the upper limit of the federal funds target rate remained at 4.50%, feeding those higher loan rates.

Source: Experian data from June 2025

Average Mortgage Debt Balance Continues to Slowly Increase

The bedrock of the U.S. consumer debt, mortgages represent about two-thirds of total consumer debt. In 2025, mortgage balances increased by $0.29 trillion to $12.34 trillion.

This slow and steady increase in top-line debt doesn't capture the turbulence of the housing market in the U.S., as housing affordability and availability remains the defining economic topic for consumers in this decade. This market is impacting not only those repaying mortgages, but also free-and-clear homeowners and renters, who are constrained from considering moving due to the expense more than to their credit health.

Learn more: Current Mortgage Rates

Student Loan Balances Buffeted by Cancellations of Debt, Repayment Plan Changes

Student loan balances continued to be held by more than 44 million borrowers in 2025, with interest accruing on much of the $1.61 trillion total loan balance after a more than three-year pause. Ongoing changes in student loan repayment schemes made by the Department of Education also mean that many borrowers may be facing higher monthly payment amounts than previously expected.

Auto Loan Borrowers Adjust to Higher Rates

Auto loan debt has finally been reined in, growing a modest 2% from 2024 to $1.56 trillion. This decline, however, is against a backdrop of relentless bad news for most drivers otherwise. Driving costs—particularly the cost of car insurance—have increased dramatically over the past several years, which is causing more drivers to make tough decisions about when, where and what they drive.

Although borrowing rates for both new and used car loans remain elevated in 2025, there's some evidence that growing inventory could drive more affordable car payments, thanks to the rise of the number of EVs now available in the used market. Meanwhile, insurance and repair costs continue to rise in the face of replacement parts uncertainty amid new tariff policies.

Learn more: Current Auto Loan Rates and Financing Trends

Credit Card Balances Rise as APRs Remain at Record Highs

Increases in total credit card balances continued, growing another 6.4% through June 2025 to $1.21 trillion. Higher credit card APRs, now averaging more than 22%, are putting additional upward pressure on total balances. Meanwhile, consumer spending broadly continues apace, though there's evidence that spending is beginning to slow.

Personal Loans Balances Grow Modestly

Personal loans grew a modest 3.4% in 2025. As personal loans are often used to consolidate higher-rate debt into one fixed monthly payment with a lower interest rate, this growth may be at least partly attributable to consumers consolidating debts rather than using them for big-ticket expenses like family vacations. In general, the market for personal loan originations has neither sped up nor slowed so far in 2025, though additional anticipated rate cuts by the Federal Reserve this year may make consolidation more enticing for some borrowers.

HELOC Balances Jump as Rates Decline

The sharpest increase in 2025 was perhaps for a positive reason, as home values continue to climb for many homeowners. HELOC balances grew by 11.3% over the past 12 months to $391 billion, thanks mostly to an increase in HELOC originations. As more homeowners are tapping this relatively lower interest credit, many HELOC borrowers are currently paying less than 9% APR on any draws they've made.

Retail Cards Continue to Decline in Use

The 6% drop in retail card debt in 2025 to $120 billion is a continuation of a multiyear decline in the use of this type of store credit card. And as department and big-box stores continue to facilitate buy now, pay later plans as a preferred way to drive sales, most would expect the decline to continue. And as cards with higher APRs than even bank-issued credit cards, they're usually no bargain for consumers either.

Total American Debt Balance by Type

Total American Debt Balance by Age

Demographic trends continue at a steady rate, despite the broader changes in credit. As expected, the younger generation's balances are growing the fastest, commensurate with growing spending as young adults become fully integrated into consumer financial markets.

Source: Experian data from June of each year; ages as of 2025

Historically, household expenses (as well as household incomes) have tended to peak when a consumer is in their 50s. This is reflected in the data as Generation X has by far the most consumer debt, despite having fewer members than millennials (and about the same number as baby boomers). However, the nearly 2% jump in Gen X debt this year may indicate the peak for this generation, which turned 60 this year, has yet to be reached.

Future Rate Cuts Could Impact Consumer Borrowing

Once again, all eyes are on the Federal Reserve, which continues to try to maintain economic stability (usually measured by keeping employment rates as high as possible) while making sure inflation doesn't get out of hand. In September, the Fed made the first of what are expected to be several rate cuts; market observers are now expecting a total of three quarter-point rate cuts by the end of 2025.

Tariffs and anticipated rate cuts may lead to further increases in consumer balances in 2026. Tariffs will likely add meaningful percentage increases to the cost of affected goods, from a $50 bottle of imported wine to a $50,000 new car purchase. Rate cuts, meanwhile, will likely increase demand for loans—especially consolidation loans for overextended consumers—because consumers will be more likely to borrow if they pay less in interest.

The twin dynamics of higher-cost goods and lower-cost financing are pushing consumer demand for loans in opposite directions, and it likely won't be apparent for several months which force is more dominant.

And there's a third dynamic at play: consumer employment levels. Lower unemployment rates have traditionally meant higher average FICO^® Scores, which in turn means more consumers who lenders are willing to finance. Naturally, a reversal of these near-full employment levels could lead to fewer consumers lenders would accommodate.