The Federal Reserve Bank of New York just released new data on household debt, and WalletHub’s inflation-adjusted analysis revealed that while U.S. households owed a record amount in absolute terms ($18.04 trillion) at the end of 2024, inflation-adjusted debt is roughly $1 trillion below the record from 2008. WalletHub also released a new nationally representative survey gauging how households are dealing with debt. You can find key highlights below.
Key Findings (Inflation Adjusted)
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Year-End Debt Results: Total household debt increased by $28 billion during 2024, which is roughly $1 trillion below the record from 2008.
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Household Average: The average household owed a total of $149,997 at the end of 2024, which is $12,875 below the all-time high.
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Total Debt-to-Deposits Ratio: The ratio of total household debt to deposits indicates consumers are in good shape, as it's still below pre-Covid levels and roughly 47% lower than its early 2000s peak.
- Total Debt-to-Assets: The ratio between total household debt and assets continues to be at a very healthy level of around 9.5%.
Full study: https://wallethub.com/edu/d/household-debt-report/120725
Household Debt Survey Results
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Health Problems Due to Debt: Nearly 1 in 3 Americans think their household debt is affecting their health.
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Households Are Struggling to Keep Up: Nearly 2 in 5 Americans say their household is struggling with debt.
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More Debt Ahead: Nearly 1 in 5 people expect their household debt to increase in the next 12 months.
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Credit Card Debt Is The Biggest Burden: 45% of American households struggle the most with credit card debt, followed by mortgages (22%) and student loans (19%).
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Keys to Debt Reduction: 45% of Americans think that less inflation will help reduce their household debt the most, while 20% believe better budgeting is more effective and 17% point to the need for lower interest rates.
- Concern for Our Kids' Future: More than 1 in 4 people are worried about how their debt will affect their kids.