Debt keeps rising in the United States, especially in certain age brackets. If you’re wondering how your household debt stacks up against that of others in your age group, taking a quick look at the numbers can help you see where you stand on the national scale.
The skilled and seasoned Ohio bankruptcy attorneys at Fesenmyer Cousino Weinzimmer understand that even the most well-intentioned people can find themselves in a financial hole. We offer a free consultation to evaluate your financial situation. We can help by looking at your debts, your income, and your goals and coming up with a debt relief plan that’s best for you.
Debt at a Glance in the U.S.
Overwhelming debt is a significant issue for U.S. households. The rate of bankruptcy has been steadily on the rise. The U.S. courts report that the rate of bankruptcy filing has increased by 16% between 2023 and 2024. According to the New York Fed, our country’s debt hit a new high of $17.69 trillion in the first quarter of 2024.
The average household debt in the U.S. was $104,215 at the end of 2023. Mortgages make up the largest portion of U.S. consumer debt.
Debt tends to soar during people’s peak earning years. As long as earnings keep coming, people usually can afford to carry this debt load. However, sometimes the unexpected happens – layoffs, accidents, divorce, unforeseen high medical bills – and people find themselves faced with payments they cannot meet.
The experienced bankruptcy attorneys at Fesenmyer Cousino Weinzimmer can help with overwhelming debt. Call one of our offices today at 614-228-4435 (Columbus), 937-222-7472 (Dayton), or 877-654-5297 (Cincinnati) to schedule a consultation.
What Americans Owe by Age
U.S. household debt numbers are looking worse than ever before. Here’s what Americans owed on average in 2023, broken down by generation:
- Gen Z (18-26): $29,820
- Millennial (27-42): $125,047
- Gen X (43-57): $157,556
- Baby Boomer (58-77): $94,880
- Silent Generation (78+): $38,600
The reason for these age-related differences is that people tend to take on the most debt due to family needs in middle age. Common examples include buying larger homes, purchasing cars for their children, and paying college tuition. Also, these years are when people are most likely to be established in their careers. As individuals make more money, they feel comfortable taking on higher debt.
The type of debt changes according to age as well. Younger adults are more likely to only carry student loan debt. As they grow older, personal debt is more likely to also include auto loans and home mortgages. Since younger people are taking on debt at a higher rate and generally paying it off at a lower rate, the picture for their future seems to be one of increasing debt.
U.S. Household Debt by Category
Not every U.S. household has debt for the same reasons. However, a select group of debt categories is most commonly seen across the board. Looking at these helps identify which types of debt are highest for Americans in different age groups.
Education
Student loans are the second-largest debt category for U.S. households. The average balance for education loans sits at $38,787, while those over age 78 have almost no student loans.
Credit Card Debt
Credit card debt makes up the smallest category of U.S. consumer debt, with a household average of only $6,501. Individuals under 26 and over 78 years old have the least amount of credit card debt, but these groups are also among the least likely to have a credit card. Gen X, or individuals aged 43-57, are most likely to have the most credit card debt, with an average of $8,215.
Mortgage Debt
Mortgage debt is by far the largest debt category for U.S. consumers. The average mortgage debt is $244,498, with an additional average debt of $42,139 in home equity lines of credit (HELOCs).
Increases in housing prices over the past several years mean that younger adults are paying more for homes than previous generations. Home mortgages are the largest debt category for adults under 30.
Dealing With Debt
In general, all generations show a greater comfort level with debt in all forms and have become more comfortable with financing in recent years. However, increasing debt means increasing the risk that you will not be able to meet payments.
If you have gotten to the point where your debts have become overwhelming, you may want to consider the fresh start available by filing for bankruptcy. Bankruptcy is a legal way to have many debts forgiven and get a fresh financial start. The most common types are Chapter 7 and Chapter 13. Chapter 7 is a fresh start bankruptcy that enables you to discharge most or all consumer debts, while Chapter 13 may allow you to keep property, such as a mortgaged house, while you complete a three- to five-year payment plan to have debts forgiven.
Contact Our Ohio Bankruptcy Lawyer for Help
If your debts are mounting out of control, we can provide a helping hand. The experienced and compassionate Ohio debt relief attorneys at Fesenmyer Cousino Weinzimmer offer a free consultation to evaluate your entire financial situation. We will examine your income, your debts, and your goals and discuss the best fit for you. We will make sure you are aware of all your options and help you decide on the path to a brighter future that makes sense in your individual case. We understand what you are going through and will handle every phase of the process.
Delaying can only make your situation worse, so contact the Ohio bankruptcy attorneys at Fesenmyer Cousino Weinzimmer today. Call one of our conveniently located office branches at 614-228-4435 (Columbus), 937-222-7472 (Dayton), or 877-654-5297 (Cincinnati), or email for your consultation so we can determine what debt-relief solutions will work best for you.
