The State of Household Debt in America
The Briefing
- U.S. household debt stands at $14.56 trillion, and has doubled since 2003
- Student loan debt has expanded a colossal 550% in the same time frame
The State of Household Debt in America
American households are becoming increasingly indebted.
In 2003, total household debt was $7.23 trillion, but that figure has recently doubled to $14.56 trillion in 2020. With just under 130 million households in the country, this equates to an average of $118,000 of debt per household.
Here’s how the various forms of U.S. household debt compare.
| Type of Debt | 2003 (in trillions) | 2020 (in trillions) | % Growth |
|---|---|---|---|
| Mortgage | $4.94 | $10.04 | +103% |
| Home Equity Revolving | $0.24 | $0.35 | +45% |
| Auto Loan | $0.64 | $1.37 | +137% |
| Credit Card | $0.69 | $0.82 | +18% |
| Student Loan | $0.24 | $1.56 | +550% |
| Other | $0.48 | $0.42 | -12% |
| Total | $7.23 | $14.46 | 100% |
Mortgages: Steep Price to Pay for Home Ownership
Making up roughly 70% of all household debt, and growing $5.1 trillion since 2003, mortgage debt now stands at $10.04 trillion.
A fundamental driver of mortgage activity is interest rates. Given the two variables tend to have an inverse relationship with one another, interest rates have a big impact on the affordability of housing. As long as U.S. interest rates remain near 200-year lows, its likely mortgages will maintain at elevated levels.
Students Continue Struggling with Student Debt
The second-largest form of debt is student loans. Although not quite the size of mortgages in raw dollars, student debt is the fastest growing as a percentage, having (Read more...)