Here’s How Much Americans Are Paying Towards Debt Each Month

If you happen to be one of millions of Americans who struggle with paying off debt each month, you’re not alone. The average monthly debt for consumers is over $300 more than it was just a few years ago, amid rising inflation and stagnant wages.

This is according to a recent LendingTree study that found Americans pay an average of $1,583 toward their debts each month, up from $1,233 in 2020 when the company last conducted the study.

In coming up with the statistics, the online lending marketplace conducted an analysis of anonymized credit reports of about 310,000 users on the platform ranging from July 1 to Sept. 30, 2023. The types of debt used to calculate the figure included mortgages, auto loans, credit cards, personal loans, and student loans.

Not wholly surprisingly, mortgages accounted for the largest chunk of debt, with homeowners paying an average of $1,855 per month. Auto loans came in second at $690, followed by personal loans tallying $517, student loans accounting for $307, and credit card payments at $272 per month.

Interestingly enough, Gen Xers (ages 43 to 58) make the highest debt payments at $1,974 per month, with the bulk going to mortgage payments, while Gen Z (ages 18 to 26) pays the least at $645. Baby Boomers (ages 59 to 77) are responsible for the second-highest monthly debt at $1,529, with most of it going toward student loans, followed by Millennials (ages 27 to 42) who pay $1,490 monthly.

LendingTree chief credit analyst Matt Schulz said that access to credit accounts for the biggest factor in generational debt payments.

“Gen Xers are likely in their prime earning years and have had a long time to build up a strong credit profile,” Schulz explained. “The combination of high income and great credit means lenders will be eager to lend you money, but it also means you’ll have the ability to run up more debt. That’s a real risk, especially considering the many financial issues Gen Xers may face, including paying for kids’ college tuition, helping their elderly parents and more.”