Average US Household Carries $155K In Debt

The average U.S. household is carrying $155,622 in debt while the nation as a whole is burdened with $15.24 trillion in debt, according to the 2022 American Household Credit Card Debt Study published by NerdWallet Inc. NRDS.

What Happened: In a survey of more than 2,000 adults, 35% of respondents said their household financial situation has gotten worse over the past 12 months. Within that group, 38% attributed their financial problems to a decline in household income and 36% said it was because their household expenses increased.

NerdWallet observed that U.S. median household income fell by 3% over the past two years while the overall cost of living rose by 7% — a reversal of a decade-long trend where income growth exceeded inflation.

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What Else Happened: NerdWallet noted credit card debt has declined by 13.85% from 2020 to 2021, with the average U.S. household now owing $6,006 on their credit cards. While households that carry credit card debt will pay an average of $1,029 in interest charges this year, that figure is 11% lower than one year ago.

However, mortgage and student loans debt levels are up year-over-year. Mortgage debt is now 8.2% higher than in the previous year, at an average of $207,861 per household with mortgages, while student loan balances rose about 2.5% over the past year to an average of $59,042 per household carrying this debt load.

Auto loans also recorded a year-over-year increase, up 6.10% for an average debt load of $28,882.

“The past year and a half was already tough for the millions of Americans who lost jobs,” said Sara Rathner, credit cards expert at NerdWallet. “Now, we’re faced with rising costs for much-needed items — food, housing, gas, transportation and medical care. It remains difficult for many to catch up.”

Photo: Wagar Hassan / Pixabay