Monthly Debt Payments Approach $1,600, With California Residents Leading the Way
Most Americans are familiar with debt, but how much indebted consumers are putting toward their payments varies by location and age.
Overall, Americans put an average of $1,597 toward their debts each month, according to the latest LendingTree survey, with those in California ($1,939) and Gen Xers ($2,089) shelling out the most.
Here’s what else we found.
Key findings
- Americans pay an average of $1,597 toward their debts each month — up 0.9% from $1,583 the prior year. The largest monthly payments among those with these kinds of debts are for mortgages ($2,124), auto loans ($719) and personal loans ($475). The lowest monthly debt payments are for credit cards ($273) and student loans ($277).
- Residents in the state with the highest debt payments pay more than 60% more each month than those in the lowest-ranking state. The highest average monthly debt payments are in California ($1,939), Colorado ($1,920) and Washington ($1,891), while the lowest are in Mississippi ($1,190), Kentucky ($1,237) and West Virginia ($1,246).
- Californians have the highest average monthly mortgage and credit card payments. Those with mortgages in California pay an average of $3,189 a month — the only state exceeding $3,000. Californians also put the most toward their credit card bills, with debtors paying an average of $307 a month. Meanwhile, Texans with auto loans have the highest average monthly car payments at $829, while Hawaii residents with personal loans face the highest monthly payments at $606.
- West Virginians have the lowest average monthly mortgage payments. Those with mortgages in West Virginia pay an average of $1,244 monthly — 41.4% lower than the national mortgage average. Among those with these types of debts, Rhode Islanders pay the lowest average car payments at $617, while Arkansas and Mississippi have the lowest credit card payments at $224. Finally, Mississippi residents with personal loans also have the lowest payments at $410.
- Gen Xers make the highest total debt payments at $2,089 a month, but millennials and Gen Zers are quickly catching up — especially with mortgage payments. Among all age groups, Gen Xers face the highest monthly payments for auto loans ($792), personal loans ($551) and credit cards ($344). Meanwhile, millennials have the highest monthly mortgage payments at $2,275. Gen Z debtors have higher mortgage payments than baby boomer debtors, at $1,915 versus $1,840.
Americans put slightly more toward their debts than prior year
In the third quarter of 2024, Americans put an average of $1,597 toward their debts each month. Comparatively, that’s up 0.9% from $1,583 per month a year earlier in Q3 2023. That comes despite inflation cooling over the same period, according to the U.S. Bureau of Labor Statistics (BLS). Over the periods analyzed, inflation was highest at 3.7% in August and September 2023 and lowest at 2.4% in September 2024.
Matt Schulz — LendingTree chief consumer finance analyst and author of “Ask Questions, Save Money, Make More: How to Take Control of Your Financial Life” — expects this debt payment trend to continue. “I expect overall debt balances to rise over the coming year, and I suspect that debt payments will grow, too,” he says. “I would hope that with inflation slowing down, people might have a little bit more disposable income to put toward their debts. That would be a really positive step.”
By debt type, mortgage payments are understandably highest. Americans with mortgages pay an average of $2,124 a month toward this debt type. That also makes it the debt type with the biggest year-over-year increase, jumping 14.5% from $1,855 in Q3 2023.
Auto loans are second-highest, with Americans with auto loans paying $719 toward these debts, up 4.2% from $690 in Q3 2023.
Average monthly debt payments by type
Source: LendingTree analysis of anonymized credit reports of about 310,000 users on the LendingTree platform from July 1 to Sept. 30, 2023, and about 403,000 users from July 1 to Sept. 30, 2024. Notes: The total average is across all Americans, while debt type averages are among those with active debts. Credit card payments refer to the minimum amount cardholders need to pay monthly to keep their accounts in good standing.
Americans put the least toward credit cards ($273) and student loans ($277) each month. Student loans also saw the biggest year-over-year decrease in monthly payments, falling 9.8%. Personal loans (down 8.1%) was the only other category to see a decrease from Q3 2023.
Meanwhile, the average monthly payment for nonmortgage debt in the U.S. is $817.
California, Colorado, Washington residents pay most
By state, those in California shell out the most for their debt payments, paying an average of $1,939 monthly. That’s 62.9% higher than the lowest-ranked state. Colorado ($1,920) and Washington ($1,891) follow.
Schulz says cost of living and income contribute to these high payments.
“You make more money in these states, but it can also cost a lot more to live there — especially when it comes to housing prices in the big cities,” he says. “Also, residents in these states tend to have decent credit scores, giving them access to plenty of credit. That combination can be really powerful, but it can also be a double-edged sword because it can be easy to run up a lot of debt and potentially get out of control.”
States where residents pay the most toward monthly debts
Source: LendingTree analysis of anonymized credit reports of about 403,000 users on the LendingTree platform from July 1 to Sept. 30, 2024.
According to the U.S. Census Bureau, the median household income is $96,334 in California, $92,470 in Colorado and $94,952 in Washington — all far above the U.S. median of $78,538. All three states also have average FICO Scores above the U.S. average of 715, according to a LendingTree credit scores analysis, at 722 in California, 731 in Colorado and 735 in Washington. Those all fall in the “good” score range of 670 to 739.
Meanwhile, the lowest monthly payments are in Mississippi, with residents here paying just $1,190 toward their debts. Kentucky ($1,237) and West Virginia ($1,246) follow. Unlike the top-ranking states, residents here have generally lower incomes and worse credit scores. By state:
- The median household income in Mississippi is $54,915, while the average FICO Score is 680
- The median household income in Kentucky is $62,417, while the average FICO Score is 705
- The median household income in West Virginia is $57,917, while the average FICO Score is 703
Full rankings
States where residents pay the most/least toward monthly debts
Source: LendingTree analysis of anonymized credit reports of about 403,000 users on the LendingTree platform from July 1 to Sept. 30, 2024.
California, Texas, Hawaii residents pay most by debt type
Turning to debt type by state, Californians with mortgages put the most toward their payments. Residents here with mortgages pay an average of $3,189 a month — the only state exceeding $3,000.
Notably, four of the five metros with the largest share of million-dollar homes are in California, according to another LendingTree study. Those high home prices may contribute to the high mortgage costs.
Washington ($2,903) and Hawaii ($2,878) follow. Seattle ranks fifth among the 50 largest metros with the highest share of million-dollar homes.
States where residents pay the most toward mortgages
Source: LendingTree analysis of anonymized credit reports of about 403,000 users on the LendingTree platform from July 1 to Sept. 30, 2024. Note: Debt type averages are among those with active debts.
Turning to credit cards, California ranks first again, with debtors putting an average of $307 a month toward their monthly credit card bills. Florida ($304) and Texas ($302) follow. Notably, all three states appear prominently in a LendingTree study of metros with the highest average credit card utilization rates, with three Texas metros and one metro each in California and Florida making the top-10 list.
States where residents pay the most toward credit cards
Source: LendingTree analysis of anonymized credit reports of about 403,000 users on the LendingTree platform from July 1 to Sept. 30, 2024. Notes: Debt type averages are among those with active debts. Credit card payments refer to the minimum amount cardholders need to pay monthly to keep their accounts in good standing.
Texas makes its first No. 1 appearance in auto loans, with debtors here paying a monthly average of $829 toward their cars. Wyoming ($801) and New Mexico ($788) round out the top three.
States where residents pay the most toward auto loans
Source: LendingTree analysis of anonymized credit reports of about 403,000 users on the LendingTree platform from July 1 to Sept. 30, 2024. Note: Debt type averages are among those with active debts.
Meanwhile, Hawaii residents with personal loans have the highest monthly payments in this category, paying an average of $606 a month. Alaska ($564) and New Jersey ($560) rank second and third, respectively.
States where residents pay the most toward personal loans
Source: LendingTree analysis of anonymized credit reports of about 403,000 users on the LendingTree platform from July 1 to Sept. 30, 2024. Note: Debt type averages are among those with active debts.
Looking at nonmortgage debts overall, Texas residents make the highest payments at $988 — 20.9% above the national nonmortgage average of $817. Florida and Georgia tie for second at $898 monthly.
States where residents pay the most toward nonmortgage debt
Source: LendingTree analysis of anonymized credit reports of about 403,000 users on the LendingTree platform from July 1 to Sept. 30, 2024. Note: Debt type averages are among those with active debts.
Full rankings
States where residents pay the most/least toward mortgages
Source: LendingTree analysis of anonymized credit reports of about 403,000 users on the LendingTree platform from July 1 to Sept. 30, 2024. Note: Debt type averages are among those with active debts.
States where residents pay the most/least toward credit cards
Source: LendingTree analysis of anonymized credit reports of about 403,000 users on the LendingTree platform from July 1 to Sept. 30, 2024. Notes: Debt type averages are among those with active debts. Credit card payments refer to the minimum amount cardholders need to pay monthly to keep their accounts in good standing.
States where residents pay the most/least toward auto loans
Source: LendingTree analysis of anonymized credit reports of about 403,000 users on the LendingTree platform from July 1 to Sept. 30, 2024. Note: Debt type averages are among those with active debts.
States where residents pay the most/least toward personal loans
Source: LendingTree analysis of anonymized credit reports of about 403,000 users on the LendingTree platform from July 1 to Sept. 30, 2024. Note: Debt type averages are among those with active debts.
States where residents pay the most/least toward nonmortgage debt
Source: LendingTree analysis of anonymized credit reports of about 403,000 users on the LendingTree platform from July 1 to Sept. 30, 2024. Note: Debt type averages are among those with active debts.
West Virginia, Rhode Island residents pay least by debt type
Conversely, West Virginians have the lowest average monthly mortgage payments. Those with mortgages in West Virginia pay an average of $1,244 monthly — 41.4% lower than the national average of $2,124.
Following, Mississippi and Arkansas residents pay $1,331 and $1,421 monthly, respectively. Two of the top 10 hidden gem metros for homeownership (where we analyzed median home values, homeownership rates, median household incomes of owner-occupied homes with mortgages and more) are in West Virginia.
States where residents pay the least toward mortgages
Source: LendingTree analysis of anonymized credit reports of about 403,000 users on the LendingTree platform from July 1 to Sept. 30, 2024. Note: Debt type averages are among those with active debts.
Turning to car payments, Rhode Islanders with auto loans pay the least, at $617 a month, with Massachusetts ($632) and Oregon ($633) ranking second and third, respectively.
States where residents pay the least toward auto loans
Source: LendingTree analysis of anonymized credit reports of about 403,000 users on the LendingTree platform from July 1 to Sept. 30, 2024. Note: Debt type averages are among those with active debts.
Meanwhile, Arkansas and Mississippi tie for the lowest credit card payments, with debtors paying an average of $224 monthly. Kentucky follows at $226. All three states have particularly low average FICO credit scores, at 696 in Arkansas, 680 in Mississippi and 705 in Kentucky. These scores could lead to higher interest rates, driving up monthly payments.
States where residents pay the least toward credit cards
Source: LendingTree analysis of anonymized credit reports of about 403,000 users on the LendingTree platform from July 1 to Sept. 30, 2024. Notes: Debt type averages are among those with active debts. Credit card payments refer to the minimum amount cardholders need to pay monthly to keep their accounts in good standing.
Turning to personal loans, Mississippi ranks lowest, with residents with personal loans paying $410 a month. Arkansas ($412) and Oklahoma ($417) follow.
States where residents pay the least toward personal loans
Source: LendingTree analysis of anonymized credit reports of about 403,000 users on the LendingTree platform from July 1 to Sept. 30, 2024. Note: Debt type averages are among those with active debts.
Finally, Wisconsin residents pay the least toward nonmortgage debts, shelling out an average of $679. Oregon ($694) and Iowa ($716) follow.
States where residents pay the least toward nonmortgage debt
Source: LendingTree analysis of anonymized credit reports of about 403,000 users on the LendingTree platform from July 1 to Sept. 30, 2024. Note: Debt type averages are among those with active debts.
Gen Xers pay most, but younger generations catching up
As for age groups, Gen Xers (ages 44 to 59) make the highest average debt payments, putting $2,089 a month toward them. Millennials (ages 28 to 43) follow at $1,584.
Schulz says debt isn’t necessarily bad. “Some debt can be just fine, especially if it’s debt that has a return on investment,” he says. “Debt from starting a small business can be an example, and so can mortgage debt and even student loan debt, when done in moderation. On the flip side, high-interest debt that isn’t serving you at all can be devastating. It can keep you from reaching other short-term or long-term financial goals such as building an emergency fund or saving for college.”
That being said, millennials make the highest monthly mortgage payments, with these debtors paying $2,275 toward their mortgages. Perhaps because they’re the earliest in their homeownership journey, Gen Z debtors (ages 18 to 27) have higher mortgage payments than baby boomer debtors (ages 60 to 78), at $1,915 versus $1,840.
Average monthly debt payments by age group and debt type
Source: LendingTree analysis of anonymized credit reports of about 403,000 users on the LendingTree platform from July 1 to Sept. 30, 2024. Notes: The total average is across all Americans in that age group, while debt type averages are among those in each group with active debts. Credit card payments refer to the minimum amount cardholders need to pay monthly to keep their accounts in good standing.
Gen Xers have the highest monthly payments for auto loans ($792), personal loans ($551) and credit cards ($344).
Looking at how things have changed over time, monthly debt payments increased the most among millennials, rising 6.3% from $1,490 to $1,584. Gen Xers (5.8%) saw the next biggest increase, followed by Gen Zers (4.0%).
Average monthly debt payments by age group
Source: LendingTree analysis of anonymized credit reports of about 310,000 users on the LendingTree platform from July 1 to Sept. 30, 2023, and about 403,000 users from July 1 to Sept. 30, 2024.
Meanwhile, monthly debt payments decreased by 5.9% among baby boomers, the only age group to see a decrease.
Additionally, Schulz believes younger Americans are reaching major milestones, such as buying a home, raising a child, owning a car and wrestling with many of the costs of trying to raise a family in 2025. That can contribute to their rising debt rates compared to their older peers.
Determining how much to put toward debts: Top expert tips
Paying off debt can feel daunting, particularly when trying to balance debt payments with the cost of living. For those trying to decide how much they should put toward their debts, Schulz offers the following advice:
- Create a budget. “It isn’t fun, but you can’t make a meaningful plan to attack debt unless you know how much money is coming in and going out of your household each month,” he says. “If you don’t have a budget or you haven’t updated in a while, take the time to look at what you’re spending regularly. Once you understand that, you can begin to determine how much money you might have to put toward knocking down those debts.”
- Prioritize ruthlessly. “Yes, you love the freedom to watch something on all of those streaming services you subscribe to, but do you use them all?” he says. “Would that money be better spent elsewhere? There are probably some other examples as well. Once you see where you’re spending, you’ll need to make some tough — and maybe some not-so-tough — decisions.”
- Know that sometimes it’s all about income. “There’s only so much that you can cut from a budget,” he says. “You may find yourself in a situation where you simply have no other option but to find a way to bring in other income. Maybe that is a side hustle, a second job or selling some things of value. This isn’t a decision that should be made lightly, but it may be one that can’t be avoided.”
Methodology
LendingTree researchers analyzed a sample of about 403,000 anonymized credit reports of LendingTree users from July 1 to Sept. 30, 2024 — the third quarter of 2024. (At times, we compared that to a sample of about 310,000 anonymized credit reports of LendingTree users on the LendingTree platform from July 1 to Sept. 30, 2023 — the third quarter of 2023.)
Analysts looked at users with active debts in the following categories: mortgages, auto loans, credit cards, personal loans, student loans and other. Active accounts of any type (including individual accounts, joint accounts and authorized users) were included in this analysis. Credit card payments refer to the minimum amount cardholders need to pay monthly to keep their accounts in good standing.
Analysts calculated the average monthly payments nationally and by state and generation. We defined generations as the following ages in 2024:
- Gen Zers: Born after 1996; ages 18 to 27
- Millennials: Born between 1981 and 1996; ages 28 to 43
- Gen Xers: Born between 1965 and 1980; ages 44 to 59
- Baby boomers: Born between 1946 and 1964; ages 60 to 78
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- Key findings
- Americans put slightly more toward their debts than prior year
- California, Colorado, Washington residents pay most
- California, Texas, Hawaii residents pay most by debt type
- West Virginia, Rhode Island residents pay least by debt type
- Gen Xers pay most, but younger generations catching up
- Determining how much to put toward debts: Top expert tips
- Methodology
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