In 2024, the average American debt reached $105,056, with notable increases across various debt types, including mortgages, student loans, auto loans, and credit cards. The average mortgage balance stood at $252,505, while student loan debt saw a decrease to $35,208 due to federal forgiveness efforts. Despite these figures, it's crucial to assess debt not just by its amount but by its composition and your financial situation. High-interest debts, like credit cards, can be more burdensome than larger, low-interest debts such as mortgages. Evaluating your debt-to-income ratio is vital; ideally, this should be 35% or lower to ensure financial stability. Comparing oneself to average debt levels can be misleading, as personal income and expenses play a significant role in determining financial health. Strategies for managing debt include balance transfer cards and debt consolidation loans, which can help reduce interest payments and accelerate repayment.
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