Average American's Non-Mortgage Debt Drops to $21,800 in 2023 – Lowest Since 2019

Diccon Hyatt is a seasoned financial and economic journalist who has extensively reported on the pandemic-era economy through hundreds of articles over the past two years. He specializes in translating complex financial concepts into clear, accessible language, focusing on how economic trends affect personal finances and the broader market. His previous experience includes work with U.S. 1, Community News Service, and the Middletown Transcript.

Recent data reveals that Americans are carrying less non-mortgage debt than at any point since 2019, though this positive trend is not universal.

Key Insights

• In 2023, the average American with debt owed $21,800 excluding mortgage loans, according to a Northwestern Mutual survey.
• This amount represents a steady decline over recent years, dropping by $8,000 compared to 2019 figures.
• Credit cards remain the largest source of debt for 28% of respondents, followed by auto loans at 12%.

The Harris Poll survey of 1,776 U.S. adults, released by Northwestern Mutual, highlights a significant reduction in non-mortgage debt levels. Credit card balances lead as the primary debt source, with auto loans trailing behind.

"In a period marked by high inflation and economic uncertainty, it's reassuring to observe that personal debt levels have remained relatively stable year-over-year, with a slight downward trend," stated Christian Mitchell, Chief Customer Officer at Northwestern Mutual.

This debt reduction aligns with broader financial trends since the pandemic, where many households have improved their financial standing despite rising living costs. Factors such as wage increases and government relief funds during the early COVID-19 period have contributed to increased savings for numerous Americans.

However, the benefits are not evenly distributed. While 43% of respondents report holding the lowest or near-lowest debt levels of their lives, 35% indicate their debt is at or near its highest level ever.

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