How much debt does the average American have in 2026?

Debt is something most people deal with, even if no one talks about it openly. The average American's debt was $104,755 in June 2025, according to data from Experian, the credit bureau. Of course, that one simple number covers so many different people, ages, and life circumstances, it's practically impossible to apply to your own situation.

Even if your debt appears typical on paper, numbers don't tell the whole story. What feels manageable to one person can feel overwhelming to someone else. It all depends on factors like income, family needs, and the kind of debt involved.

Taking a closer look at the numbers may help you gauge where you stand, but only in the context of your life and situation. Freedom Debt Relief highlights more data on debt from Experian to help you start thinking about your finances and discusses steps that could give you more control-and more choices-when it comes to your money.

How Much Debt Does the Average American Have in 2025?

The average $104,755 debt estimate is a big number, but it also includes a huge range of debts. Most people have credit card debt and auto loans, and more than 40% of people have mortgage debt. Add in personal loans and student loans, and it's safe to say debt is a big part of pretty much everyone's daily life.

Your exact debt load may be similar-or it could be quite different. Averages may be helpful for big-picture views, but they can be pretty imprecise when you're talking about individuals.

Average American Debt by Age

People in different life stages take on different debt loads, and that's normal. Instead of focusing on the overall average, it could be more useful to compare your debt load to that of other people of your generation.

Here's a look at debt broken out by demographic:

• Generation Z (18-28): $34,328
• Millennials (29-44): $132,280
• Generation X (45-60): $158,105
• Baby boomers (61-79): $92,619
• Silent Generation (80 and over): $38,460

Most Gen Zers have credit card debt, and about a third have a car loan. Very few (7%) have a mortgage. More millennials have borrowed to reach financial goals: About two-thirds have a car loan, and nearly half (45%) have taken out personal loans. More than a third of millennials (37%) have mortgages. In the next age group, a solid half of Gen Xers have a mortgage.

Things start to cool down in your 60s. Slightly more baby boomers have a mortgage (57% vs. 54% of Gen X), but the balances go down. In fact, average balances dip for most types of debt as people age. Mortgage debt remains the largest balance across all generations for those who have one.

How Many Americans Have Debt

Some type of debt is common across all generations, like credit card debt. If you've got debt, you're far from alone.

Here's the percentage of Americans with different kinds of debt:

• Credit card: 95%
• Credit card with balance: 79%
• Car loan: 61%
• Mortgage: 42%
• Personal loan: 38%
• HELOC: 11%
• Student loan: 10%

The youngest Americans carry an average credit card balance of $3,493. The average millennial carries nearly double that amount. The average Gen Xer? Almost three times what Gen Z carries.

Some debt amounts are fairly consistent. Average auto loan balances range from $20,000 to $30,000, and that number holds steady across all generations except Americans over 80, who have auto loan balances in the high teens.

It's okay to have debt that others in your generation don't have. There's no right or wrong age to take on debt. What matters is recognizing when debt is too much to handle.

How to Know If Your Debt Is Too Much

While it could be a useful starting point, whether your debt is in line with the average isn't what's really important. What matters is whether you can pay your bills and manage other financial goals, like setting aside cash for an emergency and saving for retirement.

If most of your money goes toward debt or you struggle to make minimum payments, you might have too much debt. Another way to measure how affordable your debt is to calculate your debt-to-income ratio.

Your debt-to-income (DTI) ratio is your total monthly debt (including mortgage or rent) payments divided by your pre-tax monthly income. The higher your ratio, the more you're probably spending on debt.

Let's say your monthly debt payments are $1,200 and your monthly income is $3,000. Your DTI would be:

Step 1: $1,200 / $3,000 = 0.40

Step 2: 0.40 x 100 = 40%

In other words, you spend less than half your monthly income before taxes on debt payments.

A general rule of thumb says a good DTI is under 36% because lenders are more likely to approve loans at that threshold. However, the type of debt also matters.

High credit card balances that are accruing interest could create friction and stress. So-called good debt, such as student loans or mortgages, means you can plan for fixed payments that are predictable.

If your debt is too much and you'd like to lower your DTI, you're in good company. According to Bankrate, paying down debt was Americans' number one 2026 financial goal. You might be able to pay off debt with DIY debt strategies or turn to experts for advice on a path forward.

Ways to Pay Off Debt

No matter how your debt compares to the averages, it could be too much. Happily, you still have the power to change the direction of your financial life. There are a lot of ways to deal with debt, and the best one will depend on your specific situation.

You could try:

• Debt snowball or debt avalanche. These DIY repayment strategies help you prioritize debt payments so payoff provides motivation to keep going. The debt snowball method focuses on paying off debts with low balances first to score quick psychological wins. The debt avalanche method focuses on paying off debt with the highest interest rate first, with the aim of saving you money.
• Debt settlement. This is where you negotiate with your creditors to accept less than you owe and forgive the rest of your debt. You can do this yourself, or hire a debt settlement company to negotiate on your behalf.
• Debt consolidation. You could take out a new loan to pay off multiple existing debts. It can streamline bill-paying and possibly get you a lower interest rate than you're paying now.
• Debt management plan. This structured repayment plan comes from a credit counseling agency and could help if you need guidance.

No matter which strategy you choose, start by creating or evaluating your budget. You don't have to be a math whiz to learn to budget. Think of a budget as a spending plan or an add-on to your goal to shut the door on debt.

This story was produced by Freedom Debt Relief and reviewed and distributed by Stacker.

Copyright 2026 Stacker Media, LLC

This story was originally published June 8, 2026 at 7:30 AM.