Average American Household Debt in 2022: Facts and Figures

How much debt does the average American household have? How is that debt split between mortgages, auto loans, credit cards, and other types of loans? What about the COVID-19 pandemic and its effects on Americans' jobs and income?

The answers to questions like these can give us insight into the financial state of the average American household. We pulled together as much data as we could find on Americans' average household debt in 2022 to give you a snapshot of how we handled our debt this year.

Keep reading for more detailed statistics on each type of debt, including comparisons of average debt over time and breakdowns by race, age, and more.

Key findings

Editor's note: You may be wondering why there are some data points from before 2022 in our piece on household debt in 2022. This is because some surveys are not carried out every year and others report data from the year prior to publication.

Inflation, supply chain issues, and Americans' finances in 2022

The economy has roared back from the COVID-19 pandemic, bringing with it supply chain issues and inflation that have stressed Americans' wallets.

The rate of inflation has reached levels not seen since the late 1970s, adding to the cost of goods already pushed higher by global supply chains snarled by shortages and the ongoing COVID-19 pandemic.

The result: average debt is up in nearly every category compared to 2020. This includes total household debt, credit card debt, mortgage debt, and auto loan debt.

The percentage of personal loans and auto loans in hardship are also above 2020 levels.

Despite turning the corner on the COVID-19 pandemic, stress remains on the finances of American households.

Average consumer household debt in 2022

The New York Fed's quarterly Household Debt and Credit Survey (HHDC) shows that total consumer debt stands at $16.5 trillion as of the second quarter of 2022. That's a record high as far as the HHDC goes.

According to Experian, average total consumer debt in 2021 was $96,371. That's up nearly 4% from 2020, when average total consumer debt was $92,727.

In the second quarter of 2019, total debt was $13.86 trillion. As of the second quarter of 2022, debt had risen to $16.5 trillion.

Average American debt payments in 2022: 9.5% of income

The St. Louis Federal Reserve tracks the nation's household debt payments as a percentage of household income. The most recent number, from the first quarter of 2022, is 9.5%.

That means the average American spends more than 9% of their monthly income on debt payments. Despite debt overall increasing, Americans are still spending less of their income on debt than nearly any time in the past 25 years.

This drop could be related to debt relief programs and other allowances made for coronavirus-related income loss -- though it could also indicate that consumers have paid off their high-interest debts.

Average credit card debt in 2022

According to the latest Household Debt and Credit survey results from the New York Fed, Americans owe $890 billion in credit card debt as of Q2 2022. That's up from $790 billion in Q2 2021 and $870 billion in Q2 2019.

This could be because Americans are relying more on their credit cards due to inflation.

So what does that mean for individual credit card holders?

According to Experian, Americans had an average of $5,221 in credit card debt in 2021. Americans carry less debt on store credit cards, holding an average of $1,046 that year.

Average revolving credit card balance in 2022: $6,271

A revolving credit card balance is one that persists between payments -- in other words, it's what people pay interest on. It's one of the most important figures when looking at credit card debt.

The latest figures reported on revolving credit card balances come from the 2019 SCF, which took place before COVID-19 threw Americans' finances into a tailspin. But at the end of last year, the average (mean) revolving balance for cardholders who had a revolving balance was $6,271.

As we know, outliers can skew means, so we also report medians where we can. The median amount of revolving credit card balances in 2019 was $2,700. So some cardholders out there are revolving a lot more than $6,200.

Here's how the mean and median revolving credit card debt differ among some demographic groups:

Average household revolving credit card balance by race

Editor's note: we're not reporting gender breakdowns of this metric, because the Survey of Consumer finances asks for household, not individual, data.

Delinquent credit card payments in 2022: 1.73%

Americans remained surprisingly steady in paying their credit card bills on time. In the first quarter of 2022, the delinquency rate of credit card loans from commercial banks was 1.73%, according to the Federal Reserve.

After hitting a record low in the second quarter of 2021, the delinquency rate of credit card loans from commercial banks has slowly increased, although it remains well below levels over the past 30 years.

Average mortgage and HELOC debt in 2022

Mortgage debt makes up the vast majority of American consumer debt at 70%. That number has risen consistently since mid-2013 and has recently accelerated as home prices hit record levels.

So how much mortgage debt does the average American have? In their 2021 State of Credit Report, Experian reports that the average mortgage debt among Americans is $220,380.

That's up from the average mortgage debt reported by Experian in 2020: $208,185.

Average mortgage rate in 2022: 5.27%

Mortgage rates are on the rise in 2022, with the average rate for the second quarter of 2022 coming in 5.27%.

Rising rates come after 2020 mortgage rates neared lows not seen in decades.

Average mortgage payment in 2022: $1,487

The U.S. Census Bureau's American Housing Survey released its latest set of data in September 2020. This data covers survey results from 2019.

According to this data, the average (mean) mortgage payment in 2019 was $1,487, while the median was $1,200.

Average HELOC amount in 2022: $39,556

Based on data from Experian, the average value of a home equity line of credit in 2021 was $39,556.

Average auto loan debt in 2020

Auto loan debt has been creeping up over the past several years and hit $1.5 trillion in the second quarter of 2022.

What does that mean for individual borrowers? According to the 2019 SCF, the mean auto loan balance was $17,553 and the median was $13,000.

Average new car payment in 2022: $648

Experian gives average car payments on new auto loans by credit score, and the most recent data is from the first quarter of 2022:

• Deep subprime (300–500): $522
• Subprime (501–600): $584
• Nonprime (601–660): $604
• Prime (661–780): $588
• Super prime (781–850): $548
• All: $648

Average used car payment in 2022: $503

Experian also reports used car payments by credit tier:

• Deep subprime (300–500): $425
• Subprime (501–600): $427
• Nonprime (601–660): $424
• Prime (661–780): $407
• Super prime (781–850): $405
• All: $503

Auto loans in hardship in 2022: 3.79%

According to TransUnion, 3.79% of auto loans were in hardship in June 2022, up from 2.76% the previous year.

TransUnion says that a loan is in hardship if the borrower has a deferred payment, forbearance program, frozen account, or frozen past due payment.

Rising vehicle prices and overall inflation may be responsible for a higher percentage of auto loans being in hardship compared to 2021.

Average personal loan debt in 2020

Personal loans are versatile financial products. They can be used for a variety of financial needs, including weddings, renovations, vacations, or debt consolidation.

According to TransUnion, the average unsecured personal loan amount in June 2022 was $7,860, up from $7,273 in June 2021.

The average balance per consumer, however, is $10,498, indicating that many people who have one unsecured personal loan have at least one more. That's higher than the level recorded per consumer in June 2021, which was $9,316.

Average personal loan interest rate in 2022: 8.73%

The St. Louis Federal Reserve tracks the average unsecured personal loan interest rate. In May 2022, the average interest rate for a 24-month loan was 8.73%.

That's the lowest it's been since February 1972, when keeping statistics began.

Personal loans in hardship: 4.2%

In June 2022, 4.3% of unsecured personal loans were in hardship. That's up from June 2021, when 3.3% of unsecured personal loans were in hardship, according to TransUnion.

TransUnion says that a loan is in hardship if the borrower has a deferred payment, forbearance program, frozen account, or frozen past due payment.

American medical debt in 2022

Medical debt can be difficult to track. However, it's clear that it's a growing problem.

According to The Urban Institute, 13% of Americans -- over 43 million people -- had medical debt in collections in 2011. That number is higher in communities of color, at 15%.

Some states have significantly higher numbers, too. For example, 24% of West Virginians have medical debt in collections.

The median debt also varies quite a bit. In the United States overall, the median medical debt in collections is $703. In Wyoming, Utah, Wisconsin, and Florida, that number is over $900.

While statistics are scarce, it seems likely that rising healthcare costs -- especially during a pandemic -- have pushed these numbers higher in recent years.

Bankruptcy, delinquencies, charge-offs, and foreclosures in 2022

When Americans can't handle their debts, we see foreclosures, bankruptcies, delinquencies, and charge-offs. When those numbers go up, it's clear that Americans' personal finances are in trouble.

So what happened this year?

2022 personal bankruptcy statistics

According to the American Bankruptcy Institute's most recent release, there were 89,224 declarations of bankruptcy in the United States by the end of March 2022.

Interestingly, that's 17% less than the number we saw at this point in 2021.

Personal bankruptcies in 2022 by state

Here are the 2022 bankruptcy filings through March per capita of all 50 states and D.C. The total number of year-to-date (YTD) personal bankruptcy filings per capita in the country as a whole is 1.38.

Charge-off and delinquency rates on consumer loans in 2022: 1.24%

The Federal Reserve Board collects statistics on charge-offs and delinquencies by loan type. Here's how they've changed over the past 20 years:

Charge-offs and delinquencies were down across all categories in Q1 2022 compared to Q1 2021 and are below rates experienced after 2007.

The delinquency and charge-off rate for consumer loans (which includes credit cards) was 1.63% in Q1 2022, while the overall rate, which includes real estate and commercial loans, was 1.24%.

Foreclosures in 2022

Interestingly, foreclosures are way down in 2022. There's no federal-level foreclosure data easily available, but ATTOM Data's foreclosure report shows that there were 30,538 foreclosures in July 2022. Foreclosures have more than doubled since July 2021, when 12,483 properties had been filed for foreclosure.

The increase in foreclosures is likely due in part to the expiration of the government moratorium on foreclosures put in place during the initial phase of the COVID-19 pandemic. That moratorium expired on June 30, 2022.

Average buy now, pay later monthly payment in 2022

The median monthly buy now, pay later (BNPL) payment made in 2022 is between $51 and $100, according to a survey from Motley Fool Money.

Using buy now, pay later financing is akin to taking out a loan. While most BNPL providers say they don't charge interest, some do, and late fees can be steep while negatively impacting your credit score. And unlike using a credit card, making BNPL payments on time doesn't boost your credit score.

Fifty percent of Americans have used BNPL and, worryingly, a third of those users have made a late payment or incurred a late fee.

The popularity of buy now, pay later took off between 2020 and 2021. As inflation continues to rise and more merchants offer BNPL financing, usage may tick up.

Americans are using buy now, pay later to finance a range of purchases. Forty-seven percent say they've used BNPL to buy electronics and 43% say they've financed clothing and fashion buys with BNPL. Roughly a quarter of Americans have used BNPL to pay for groceries.

Paying off debt

It may seem like Americans are swimming in too much debt to get out of, but there are ways to pay off debt.

The first step towards paying off debt is understanding the total amount of debt you have. From there you can determine what type of debt you hold, like credit card debt, a mortgage, or auto loan. Then it is important to note how much you owe, what the interest rate is, and what the minimum payment amount is for each type of debt you own.

With that information, you should be able to figure out how you can fit paying off debt into your personal budget. Our debt snowball calculator can help you organize your debts and explore repayment options.

Debt payoffs apps can help you keep track of all those numbers plus offer useful budgeting features like debt calculators and expense tracking.

Sources

• American Bankruptcy Institute (2022). "Bankruptcy Statistics."
• Motley Fool Money (2022). "Study: Buy Now, Pay Later Services Grow in Popularity."
• ATTOM (2021). "July 2021 U.S. Foreclosure Activity Declines Slightly As Government Moratorium Comes To An End."
• ATTOM (2022). "U.S. Foreclosure Activity Drops 4 Percent In July 2022."
• Braga, Breno, Signe-Mary McKernan, and Caleb Quakenbush (2022). Urban Institute "Debt in America: An Interactive Map."
• Debt.org (n.d.). "Medical Debt Relief."
• Experian (2022). "Average Credit Score Hits New High, While Debt Balances Rise."
• Experian (2022). "Experian State of Automotive Finance Market Q1 2022."
• Experian (2022). "Retail Credit Card Balances Continued to Decline in 2021."
• Federal Reserve Bank of New York (2022). "Household Debt and Credit."
• Federal Reserve Bank of St. Louis (2022). "30-Year Fixed Rate Mortgage Average in the United States."
• Federal Reserve Bank of St. Louis (2022). "Delinquency Rate on Credit Card Loans, All Commercial Banks."
• Federal Reserve Bank of St. Louis (2022). "Finance Rate on Personal Loans at Commercial Banks, 24 Month Loan."
• Federal Reserve Bank of St. Louis (2022). "Household Debt Service Payments as a Percent of Disposable Personal Income."
• Federal Reserve Board (2022). "Charge-Off and Delinquency Rates on Loans and Leases at Commercial Banks."
• Federal Reserve Board (2020). "Survey of Consumer Finances (SCF)."
• TransUnion (2022). "Credit Industry Snapshot."