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What Is the Average American’s Debt by Age Group?


Americans’ debt levels tend to peak in middle age. Then, as people age and approach retirement, they typically have lower debt levels. That’s because they’ve had more time to pay down mortgage, credit card, student loan and any other debts they may have accumulated throughout life. For many Americans, a debt-free retirement is a dream that feels very far away, but it can be achieved with appropriate planning principles.

Do you have questions about how to manage debt for the future? Speak with a financial advisor today.

The Average Debt for People Under 35

Every three years, the Federal Reserve conducts a Survey of Consumer Finances. In 2019, the survey found that the average debt for households that have debt and have a head of household aged less than 35 years old is $101,970. Not all householders in this age bracket have debt, which is why the Fed bases its average only on in-debt households. Mortgage debt on a primary residence in this age group averages $171,090.

The Average Debt for People Aged 35-44

Debt levels are higher for households with a head between the ages of 35 and 44. In fact, householders in this age bracket (who have debt) have the highest debt levels of any age bracket. Their average debt? $188,680. Average mortgage debt on a primary residence in this age group is $222,310.

The Average Debt for People Aged 45-54

It seems that household debt levels start to decline for householders between 45 and 54. The average debt for debtors in this age bracket is $177,030. It’s probably not a coincidence that the average salary for those in that age bracket is the highest for any age bracket. Additionally, the average mortgage debt on a primary residence for this group is $204,320.

The Average Debt for People Aged 55-64

The Average Debt by Age

Between the ages of 55 and 64, many Americans start to think about retirement. But among heads of household who have debt and are in this age bracket, average debt levels stand at $145,740. They might have assets in excess of this debt, but they might have negative net worth. In short, for some in this age group, lingering debt can be a reason to postpone retirement.

The Average Debt for People Aged 65-74

In a perfect world, you would be debt-free by the time you retire. That scenario is not realistic for many Americans, however. Householders in this age group who have debt carry an average debt of $105,250. Among those in this age group who have a primary residence debt, average mortgage debt is $152,890.

The Average Debt for People Aged 75 and Older

Seniors age 75 and older have by far the lowest average debt. Among those who carry debt, the average debt level is just $87,300. Seniors in this age group had some advantages over other age groups. Of course, they’ve had more years to earn money and pay down their mortgages. But they also benefited from a time when real wages were higher. They may even have pensions from their old jobs. And their wages probably weren’t affected by the 2008 recession.

Bottom Line

The Average Debt by Age

Homeownership is the primary source of both wealth and debt for many Americans. However, today’s younger Americans tend to have higher student debt, delaying homeownership. That means over the next few years and decades, we may see a shift in traditional patterns of average debt by age. Again, proper planning for debt management is essential to ensuring you don’t let debilitating levels of debt take over your financial life for years on end.

Tips for Managing Debt

  • Including debt in your overall financial plan is very important, and a financial advisor can help with that. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
  • When you have multiple loans and are trying to figure out how best to tackle them, you should usually prioritize paying them off in order of highest interest rate to lowest. The higher an interest rate you are paying on a loan the more expensive it in in the long term. So as a rule of thumb, it makes sense to prioritize debt from credit cards over student loan debt and then student loans over mortgages.

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