How many Americans are debt free?
Around 23% of Americans are debt free, according to the most recent data available from the Federal Reserve. That figure factors in every type of debt, from credit card balances and student loans to mortgages, car loans and more. The exact definition of debt free can vary, though, depending on whom you ask.
The average American debt (per U.S. adult) is $58,604 and 77% of American households have at least some type of debt. Let's pause a second to define debt.
The average debt an American owes is $103,358 across mortgage loans, home equity lines of credit, auto loans, credit card debt, student loan debt, and other debts like personal loans. Data from Experian breaks down the average debt a consumer holds based on type, age, credit score, and state.
In many ways, being debt-free is increasingly being regarded as the new rich. This doesn't necessarily mean having immense wealth in the traditional sense, but rather enjoying financial freedom and the peace of mind that comes with it.
Based on data from the Federal Reserve Bank of New York and the U.S. Census Bureau (based on 2022 and 2021 data respectively), it can be calculated that each American household carries an average of $7,951 in credit card debt in a year.
Around 23% of Americans are debt free, according to the most recent data available from the Federal Reserve. That figure factors in every type of debt, from credit card balances and student loans to mortgages, car loans and more. The exact definition of debt free can vary, though, depending on whom you ask.
Statistics vary, but between 55 percent to 63 percent of Americans are likely living paycheck to paycheck.
Most lenders would prefer your credit utilization to stay below 30%. This means if your limit is $1,000, you should keep the balance under $300. » Learn More: How to Increase Credit Card Limit.
The United States boasts both the world's biggest national debt in terms of dollar amount and its largest economy, which resolves to a debt-to GDP ratio of approximately 128.13%. The United States' government's spending exceeds its income most years, and the US has not had a budget surplus since 2001.
Our $1.13 trillion in credit card debt is shattering lives. Everyday borrowers share how they've navigating the uniquely American debt machine.
Is it rare to have no debt?
So, when you hear about people who have absolutely no debt, live on less than they make, and have a stash of cash for emergencies, you might think they're . . . weird. But living a debt-free life isn't only for a special group of people. It's something anyone can do with hard work and some special characteristics.
Are people with less debt happier? Yes, 97% of people with debt say they would be happier without it. People with debt are more likely to suffer depression or anxiety.
Being debt-free is a financial milestone we often hear about people striving for. Without debt, you can focus on building more savings, investing those extra funds and just simply having more peace of mind about your finances.
In the U.S., the average credit score is 716, per Experian's latest data from the second quarter of 2023. And when you break down the average credit score by age, the typical American is hovering near or above that score.
| Generation | Average credit score (FICO) in 2023 |
|---|---|
| Generation Z (18-25) | 680 |
| Millennials (26-41) | 690 |
| Generation X (42-57) | 709 |
| Baby boomers (58-76) | 745 |
Men have 2% more credit card debt than women. Men have 20% more personal loan debt than women. Men have 16.3% more auto loan debt than women. Men have 9.7% more mortgage debt than women.
If you do some simple stats on the table below (Home Ownership Analysis - Google Sheets ) you can see that the average age of those that don't have a mortgage is around 63, compared with an average age of 50 for householders that still have a mortgage.
In addition to the plethora of financial challenges consumers faced this past year, 65% of Americans experienced financial setbacks in 2023.
$5,000 in credit card debt can be quite costly in the long run. That's especially the case if you only make minimum payments each month. However, you don't have to accept decades of credit card debt. There are a few things you can do to pay your debt off faster - potentially saving thousands of dollars in the process.
| How Much Do Americans Have in Their Savings Accounts? | ||
|---|---|---|
| $100 or less | 32.90% | 33.93% |
| $101-$500 | 12.80% | 10.04% |
| $501-$1,000 | 11.30% | 12.58% |
| $1,001-$2,000 | 10.60% | 9.81% |
What percentage of Americans make 100k?
In 2022, over 34% of American households made over $100,000. This puts you in the top 24% of the US population.
Almost 40% of American adults report they struggle to make ends meet each month, an increase from 34.4% in 2022 and 26.7% in 2021.
$20,000 is a lot of credit card debt and it sounds like you're having trouble making progress,” says Rossman.
It will take 41 months to pay off $30,000 with payments of $1,000 per month, assuming the average credit card APR of around 18%. The time it takes to repay a balance depends on how often you make payments, how big your payments are and what the interest rate charged by the lender is.
The average credit card interest rate is over 20%, so interest charges alone will take up a large chunk of your payments. On $10,000 in balances, you could end up paying over $2,000 per year in interest. It can feel disheartening, especially when you're not sure what you can do to make real progress.
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