The Average US Household Has Six-Figure Debt — Should Americans Be Worried?
Written by
Cara Danielle Brown
Edited by
Amen Oyiboke
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
According to WalletHub’s 2025 Household Debt Report, total household debt rose to $18.9 trillion nationwide at the end of quarter three of 2025, with the average U.S. household owing $154,152.
So what does this say about Americans’ finances? Should they be worried? To answer these questions, let’s delve further into the data.
Mortgage Debt
While it’s true that Americans owe $154,152 in household debt, this number includes mortgage debt. According to Ashley Morgan, attorney and owner at Ashley P. Morgan Law, LLC, we tend to see mortgages increase as home values increase over time. This is normal and, in and of itself, nothing about which to be alarmed.
Case in point: the report revealed that, at the end of quarter three of 2025, the average household owed $108,425 in mortgage debt alone.
HELOC Debt
However, the report also showed that home equity line of credit (HELOC) debt is rising, meaning individuals are borrowing against their homes. In fact, HELOC debt increased by $8 billion in quarter three of 2025, marking the fourth consecutive third-quarter increase.
“Increasing mortgage debt for purchases makes sense, but if people are refinancing and taking cash out or taking second mortgages, it means people are tapping into equity for other things,” said Morgan.
In other words, this indicates Americans are running low on money and essentially using their house as a credit card. Which brings us to:
Credit Card Debt
The report revealed that credit card debt increased to $1.23 trillion at the end of the third quarter of 2025. According to Leslie H. Tayne, finance and debt expert and founder at Tayne Law Group, rising credit card debt demonstrates that Americans are attempting to bridge the gap between stagnant wages and soaring costs. And the problem may not be going away anytime soon.
“Credit card debt dropped slightly in Q1 of 2025 from Q4 2024 levels, but increased in Q2 and Q3,” said Tayne. “This is typical of consumer spending throughout the year. Q4 is typically where we see the highest increases in credit card debt, due to holiday spending, and with Q3 in 2025 being just below the peak of Q4 spending in 2024, I project credit card debt will rise overall this year.”
High-interest debt like credit card debt can quickly strain household finances.
What’s the Verdict?
Mortgage debt increased because home prices increased, which is normal. Increases in HELOC debt and credit card debt are not good; these should be debts of last resort.
Based upon the data presented in the report, it’s difficult to come up with a definitive conclusion regarding the credit health of the economy. For that, we must address delinquencies — which, according to co-CEO and co-founder at Achieve, Brad Stroh, are troubling.
According to a recent Achieve Press Release, 69% of consumers failed to reduce their debt last quarter. “The rise in delinquencies for credit card, student loan and auto loans is a lagging indicator of financial stress,” said Stroh. “We are entering a cycle of default that could ripple through the broader economy.”
Yes, Americans should be worried.
More From GOBankingRates
