Here’s the Average Debt of Americans at Every Age (How Do You Compare?)

Americans collectively owe more than $17 trillion in debt, according to Experian. If you are trying to get out of debt, you know the task can feel like an uphill battle.

Find out how your level of debt compares to that of peers in your age group — and learn strategies to pay down those obligations and brighten your financial future.

In 2024, the average American carried $104,215 in debt, according to data compiled by Experian. That includes debt tied to mortgages, auto loans, student loans, and credit cards.

However, the average amount of debt varies by age cohort, with Gen Xers carrying the most and members of Gen Z carrying the least.

For instance, Experian found that in 2023, the average debt carried by different generations broke down as follows:

• Generation Z (age 18 to 26): $29,820
• Millennials (age 27 to 42): $125,047
• Generation X (age 43 to 57): $157,556
• Baby boomers (age 58 to 77): $94,880
• Silent generation (age 78 and up): $38,600

No matter how your debt burden compares to that of other Americans, it's likely that reducing the debt you currently have and avoiding future debt are among your top financial goals.

Whether you owe more or less than the average American, these strategies work equally well to help you shrink whatever debt you currently have.

While making the minimum monthly payment on your debt is enough to keep your account in good standing with creditors, it will drag out the amount of time it takes you to pay off the debt.

Even worse, the longer you maintain the debt, the more interest you'll end up paying over time.

Paying more than the minimum amount you're required to pay each month — even if you just contribute a few dollars more than you have to — is a good way to speed up the process of getting rid of debt for good.

Consider different debt repayment strategies and decide which one works best for you.

For instance, with the debt avalanche strategy, you make minimum payments on all the debts you owe except for the one with the highest interest rate.

Then, you focus on paying off the debt with the highest interest rate first. This saves you the most money in interest costs.

Once you finally retire this debt, you take the money you no longer need to pay off the debt and apply it toward eliminating the debt with the next-highest rate. You repeat this process until all your debts are gone.

Alternatively, you can try the debt snowball method. With this approach, you start by paying off your smallest amount of debt. Once you've eliminated that debt, you can make more than the minimum payment on the next-smallest account until you've paid that one off, and so on.

This approach doesn't save you as much money, but many people find that completely paying off small debts quickly helps them build momentum to pay off other debts.

Do you struggle to make multiple debt payments toward several accounts each month? If so, it could be time to consider a debt consolidation loan.

Once you make this move, you'll only have to remember one payment deadline instead of juggling several. In addition, the interest rate you get on a debt consolidation loan could be better than what you currently pay on your individual debts.

Rather than trying to get out of debt yourself, consider meeting with a credit counselor who understands budgets, bills, and credit.

A credit counselor will go through your full financial situation and help you plot a personalized debt repayment plan.

If you're not sure how to find a trustworthy credit counselor, check in with your current financial institution for a recommendation.

Reducing household bills will let you contribute more money toward debt repayment.

Compare your current phone and internet service provider with other providers in the area. If you find competitors offering lower rates, use that information to negotiate a lower rate with your current provider. Or, switch to the competitor to save.

If you're currently paying off a high-interest credit card, find out if you can transfer the balance to a card with a lower interest rate.

Depending on your credit score, you might even qualify for a card with no interest for the first 12 to 18 months after you open the account. This can buy you time to pay off your debt interest-free.

The most straightforward way to increase your monthly income is to pick up a second job or develop a side hustle.

When you earn extra money, you can put most or all of it toward paying off debt as fast as possible.

It's always tempting to spend an unexpected work bonus or sudden inheritance on a vacation or other expensive treat. But you are better off putting that money toward paying down debt.

Remember, the faster you pay off a debt, the less money you'll end up paying in interest.

The quest to become debt-free is a challenging one. That is true for folks of all generations.

However, following these guidelines can help you look forward to a future where you aren't weighed down by debts. Instead, you'll be able to spend money on things you want in the future rather than continue to pay for past purchases.