ECONOMY & WORK
MONEY 101
NEWS
PERSONAL FINANCE
NET WORTH
About Us Contact Us Privacy Policy Terms of Use DMCA Opt-out of personalized ads
© Copyright 2023 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.
MARKETREALIST.COM / ECONOMY & WORK

Monthly Debt Payments On The Rise for Americans; Gen X Pays the Most on Mortgages, Gen Z The Least

The study focuses on active debt such as mortgages, auto loans, credit cards, personal loans, student loans, and other categories.
PUBLISHED FEB 7, 2024
Cover Image Source:  Getty Images | Photo by Joe Raedle
Cover Image Source: Getty Images | Photo by Joe Raedle

Americans across states are getting deeper into debt, with average monthly payments reaching $1,583, according to a recent study conducted by LendingTree. This marks a $300 increase from people’s average monthly debt payment in 2020. The LendingTree report analyzed the anonymized credit reports of roughly 310,000 users from July 1 to September 30, 2023. The study focuses on active debt such as mortgages, auto loans, credit cards, personal loans, student loans, and other categories.

Image Source: Pexels|Photo by Mikhail Nilov
Americans are reeling under debts (representative image) | Pexels | Photo by Mikhail Nilov

The largest share of monthly debt payments was for mortgages which was about $1,855. Next came, auto loans with $690 and personal loans with $517.Other debt payments included student loans for which Americans paid an average of $307 per month, and credit card debt for which people paid $272 per month on average. Americans have a mountain of credit card debt. According to consumer debt data from the Federal Reserve Bank of New York, Americans had a total credit card balance of $1.079 trillion till the third quarter of 2023.



 

As per the report, Californians have the highest average monthly mortgage payments, which stood at $2,588 per month. In terms of auto loan payments, Texans pay the highest at about $804 on average every month.



 

However, overall, Maryland leads in payments, with residents paying an average of $1,850 a month toward their debts. They also make the highest average credit card payments of $306 per month.

In terms of overall debt, residents of New Jersey rank second with average monthly payments of $1,770 followed by Colorado residents who pay $1,734 on an average per month.

In personal loans, Hawaii residents top the list with the highest personal loan payments of $685. When it comes to student loans, residents of Delaware make the highest monthly payments of $392 on average.

On the other hand, West Virginians make the lowest average monthly mortgage payments of about $1,082. Residents of Rhode Island have the lowest average monthly payments for auto loans of about $581, and residents of Wyoming have the lowest credit card payments standing at about $230 per month. Lastly, Utah residents have the lowest personal loan payments at $434, as per the report.

According to the study, Gen Xers (43 to 58 years old) make the highest debt payments. Gen Xers pay about $1,974 per month, with the bulk going to mortgage payments. On the other hand, Gen Z (18 to 26 years old) makes the least monthly debt payments at $645. 

Representative Image | Pexels | Photo by Monstera Production
Gen Xers make the highest debt payments (representative image) | Pexels | Photo by Monstera Production

As per LendingTree chief credit analyst Matt Schulz, access to credit is one of the biggest factors in debt payments by generation. “Gen Xers are likely in their prime earning years and have had a long time to build up a strong credit profile,” Schulz said in the report.

The Baby Boomers (59 to 77 years) stood second with average monthly debt payments of $1,529, with most of it going toward student loans. This was followed by millennials (27 to 42 years old) who pay $1,490 monthly.



 

Baby boomers stood out for paying the most toward student loans about $327 on average, as per the study. Further, according to data from Education Data Initiative, baby boomers are also more likely to borrow money for their children’s higher education.

MORE ON MARKET REALIST
The contestant said she was bad at it but there is no excuse for mistaking a continent for a country
23 hours ago
Corey Harrison did not know much about the jersey, but he got a lot of help from the expert.
1 day ago
The contestant would have become the first man to achieve the big prize.
1 day ago
The question was about some of the most popular boy bands of all time.
1 day ago
The guest did not create a fuss but was adamant about the authenticity of his item.
1 day ago
The host's speech made for a sombre moment but he found a way to make that funny as well.
1 day ago
Fans once again called out the puzzle, which, according to them, was too tough.
3 days ago
The guest wanted a five-figure sum at first but was left disappointed by Harrison's stubbornness.
3 days ago
Rick Harrison was not as careful with this item as one would have expected him to be.
3 days ago
The contestant got a couple of chances to answer, and Harvey was left unimpressed on both occasions.
3 days ago
The contestant has denied the host's claims on social media that has fans intrigued.
3 days ago
It must have felt like a full circle moment for the family that had felt similar emotions back then.
3 days ago
The entrepreneur did not have a clear plan to grow the business despite having such a big ask.
4 days ago
All of the other sharks said no due to the risks, but Cuban seemed eager to take the gamble.
4 days ago
The contestant started the game strong but had to wait until the end for the big win.
4 days ago
The contestant faced a tough puzzle and she was not prepared for that at all.
5 days ago
Cuban had seen enough of Mr. Wonderful's greedy tactics, and he decided to take a stand.
6 days ago
Fans were also left as confused as the contestant after seeing the puzzle.
6 days ago
The iconic "Jeopardy!" champion has been hosting the show for many years now.
6 days ago
The host remembered the times he was bullied as a young kid after hearing the chant.
6 days ago