Money Girl How Your Debt Compares With the Average American’s
Mar 25, 2026
A look at how U.S. consumer debt stacks up overall and per household. Quick breakdowns of mortgages, auto loans, student loans, and credit cards. Age-based comparisons from Gen Z to Boomers. Practical rules of thumb for housing and car buying. Clear explanations of lender ratios and payoff strategies like consolidation and balance transfers.
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Auto Debt Is Common But Risky
- Auto loan balances totaled about $1.7 trillion with average auto loan debt near $25,000 and average monthly payment about $750 for a new car.
- Cars depreciate quickly, making auto debt less
Use The 24-10 Car Financing Rule
- Follow the 24-10 rule for vehicles: put at least 20% down, get a loan no longer than four years, and keep total transportation costs under 10% of gross income.
- Example: $100,000 income implies transportation costs under ~$850/month.
Student Loans Are Large And Life Shaping
- Student loan balances also sit near $1.7 trillion with average federal balances around $40,000 per borrower.
- Education debt can boost lifetime earnings but often delays milestones like homebuying and retirement saving for younger cohorts.