Average Monthly Debt Payments Reach Nearly $1,600

Most Americans are no strangers to debt, with it being just another monthly expense for many.

But it’s a hefty one: Americans pay an average of $1,583 toward their debts each month, according to the latest LendingTree study of the credit reports of about 310,000 users of the LendingTree platform.

Here’s what we found.

Key findings

• Americans pay an average of $1,583 toward their debts each month. The largest monthly payments among those with these kinds of debts are for mortgages ($1,855), auto loans ($690) and personal loans ($517). Gen Xers make the highest debt payments, forking over $1,974 a month. Meanwhile, Gen Zers pay the least monthly ($645).
• Residents in the state where people put the most toward their debts pay nearly 50% more monthly than those in the lowest-ranking state. The highest average monthly debt payments are in Maryland ($1,850), New Jersey ($1,770) and Colorado ($1,734), while the lowest are in Mississippi ($1,236) and Missouri and Ohio (tied at $1,288).
• By debt type, Californians have the highest average monthly mortgage payments. Those with mortgages in California pay an average of $2,588 a month toward that debt. Meanwhile, among those with these types of debts, Texans have the highest average monthly car payments at $804, Marylanders have the highest credit card payments at $306 and Hawaii residents have the highest personal loan payments at $685.
• On the other end of the lists, West Virginians have the lowest average monthly mortgage payments. Those with mortgages in West Virginia pay an average of $1,082 a month — less than half of what consumers with mortgages in California pay. Rhode Islanders have the lowest average monthly car payments at $581, Wyomingites have the lowest credit card payments at $230 and Utahans have the lowest personal loan payments at $434 (among those with these debts).

Americans pay nearly $1,600 toward their debts per month

Debt is on the rise, and payments are, too. Consumers’ average debt payments equal $1,583 a month — that’s up from $1,233 when we conducted this study in 2020.

Understandably, mortgages take up the biggest chunk of debt. Those who have them pay an average of $1,855 a month. Following that, auto loans ($690) and personal loans ($517) are the next largest monthly payments among consumers with these types of debts.

Average monthly debt payments in the U.S.

Source: LendingTree analysis of anonymized credit reports of about 310,000 users on the LendingTree platform from July 1 to Sept. 30, 2023. Note: Credit card payments refer to the minimum amount the cardholder needs to pay monthly to keep their account in good standing.

By age group, Gen Xers (ages 43 to 58) have the highest average debt payments, paying $1,974 a month. That’s followed with:

• Baby boomers (ages 59 to 77) ($1,529)
• Millennials (ages 27 to 42) ($1,490)
• Gen Zers (ages 18 to 26) ($645)

Breaking that down, Gen Xers with each type of debt have the highest monthly payments for mortgages ($1,958), auto loans ($753), credit cards ($322) and personal loans ($597). Meanwhile, baby boomers pay the most toward student loans ($327).

Further, given how little Gen Zers pay per month, it’s not surprising that this age group has the lowest monthly debt payments in all categories except for other. For student debt payments, Gen Zers tie with Gen Xers for the lowest monthly debt payments.

Although mortgages play the biggest role here (being the largest source of debt), those rankings are similar when mortgages are excluded, though millennials and baby boomers flip positions:

• Gen Xers pay an average of $441 toward nonmortgage debts monthly
• Millennials pay $410
• Baby boomers pay $402
• Gen Zers pay $328

According to LendingTree chief credit analyst Matt Schulz, access to credit is the biggest factor 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,” he says.” 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.”

Marylanders pay the most toward their debts, while Mississippians pay the least

Not only do debt payments vary by generation, but they also vary by state. In fact, consumers in the highest-ranking state pay nearly 50% more a month toward their debt payments than those in the lowest-ranking state.

Which state ranks highest? Maryland leads the way, with residents paying an average of $1,850 a month toward their debts. It’s followed by New Jersey ($1,770) and Colorado ($1,734).

3 states where residents pay the most toward monthly debts

Source: LendingTree analysis of anonymized credit reports of about 310,000 users on the LendingTree platform from July 1 to Sept. 30, 2023.

Meanwhile, Mississippi ranks lowest, with consumers forking over an average of $1,236 toward their debts. Missouri and Ohio tie for second-lowest at $1,288.

While Schulz believes the difference between the highest- and lowest-ranking states is concerning, he says it likely boils down to differences in income.

The three states that pay the most toward their debts have median income levels above the U.S. median of $75,149, while the three that pay the least have median income levels below the U.S. median. Here’s how that varies by state:

• Maryland: $98,461
• New Jersey: $97,126
• Colorado: $87,598
• Mississippi: $52,985
• Missouri: $65,920
• Ohio: $66,990

What matters most, Schulz says, is your debt-to-income ratio: “If your debt-to-income ratio is too high and you have difficulty making payments, you can do real damage to your credit score, and that will only make things worse.”

Full rankings: States where residents pay the most toward monthly debts

Source: LendingTree analysis of anonymized credit reports of about 310,000 users on the LendingTree platform from July 1 to Sept. 30, 2023.

By debt type, California, Texas, Maryland and Hawaii rank highest

Of course, these rankings vary by debt type. When it comes to mortgages, Californians rank first — those with mortgages pay $2,588 a month, on average, toward their debt. They’re followed by Hawaii residents ($2,465) and New Jerseyans ($2,411).

Meanwhile, Texas ranks first for car payments, with Texans with auto loans paying an average of $804 a month. That isn’t new, either. A previous LendingTree study on where millennials owe the most on their cars found that the median auto debt balance among millennials in McAllen, Texas, was $21,446 — the only metro to cross the $20,000 threshold.

Meanwhile, Marylanders — the top ranking state for overall debt — have the highest credit card payments at $306. Finally, Hawaii ranks first for personal loans, with residents with this type of debt paying $685 toward them.

Full rankings

States where residents pay the most toward mortgages

Source: LendingTree analysis of anonymized credit reports of about 310,000 users on the LendingTree platform from July 1 to Sept. 30, 2023. Note: Only those with mortgage debt were included in this analysis.

States where residents pay the most toward auto loans

Source: LendingTree analysis of anonymized credit reports of about 310,000 users on the LendingTree platform from July 1 to Sept. 30, 2023. Note: Only those with auto loan debt were included in this analysis.

States where residents pay the most toward credit cards

Source: LendingTree analysis of anonymized credit reports of about 310,000 users on the LendingTree platform from July 1 to Sept. 30, 2023. Notes: Only those with credit card debt were included in this analysis. Credit card payments refer to the minimum amount the cardholder needs to pay monthly to keep their account in good standing.

States where residents pay the most toward personal loans

Source: LendingTree analysis of anonymized credit reports of about 310,000 users on the LendingTree platform from July 1 to Sept. 30, 2023. Note: Only those with personal loan debt were included in this analysis.

States where residents pay the most toward student loans

Source: LendingTree analysis of anonymized credit reports of about 310,000 users on the LendingTree platform from July 1 to Sept. 30, 2023. Note: Only those with student loan debt were included in this analysis.

West Virginians pay the least toward mortgages — here are the other states that rank lowest by debt type

How do the lowest-ranking states stack up? When it comes to mortgages, West Virginia ranks last (or best, depending on how you look at it). West Virginians with mortgages pay an average of $1,082 a month — less than half of what consumers with mortgages in California pay.

Meanwhile, Rhode Islanders have the lowest average monthly car payments ($581), Wyomingites have the lowest credit card payments ($230) and Utahans have the lowest personal loan payments ($434).

Among the states that pay the least toward their overall debts, Mississippi has the third-lowest mortgage payments ($1,248) and the third-lowest student loan payments ($205). Missouri has the ninth-lowest mortgage payments ($1,382), while Ohio has the seventh-lowest monthly mortgage payments ($1,366), eighth-lowest monthly credit card payments ($243) and tied for eighth-lowest monthly personal loan payments ($481).

Managing and reducing debt: Top expert tips

Given the numbers, debt can take a toll on one’s financial health. To help manage and reduce your debt, Schulz offers the following advice:

• Understand your limits. “Lower income and lower credit scores mean fewer options when it comes to credit,” he says. “That limited access can even hinder people’s ability to improve their financial situation. It takes money to make money sometimes, and not having access to credit could mean that someone can’t start a small business, can’t buy a home, move to take a new job or take classes to improve their skill sets. All this stuff matters.”
• Consolidate your debts to save time and money. “Whether you use a 0% balance transfer credit card or a low-interest personal loan, debt consolidation can save you money and significant time in knocking down your debt,” he says. “As with most things, your options will be greater if you have decent credit. However, even if you don’t, it’s worth looking into consolidation, possibly through a credit counselor. The savings can be worth the effort.”
• Reassess your budget. “Tough financial times require tough choices,” Schulz says. “Depending on the size of your debt, you may only need to cancel a few streaming memberships and dine out a little less, or you may need to take more drastic action. Either way, your budget is essential. You can’t make a meaningful plan to tackle debt without knowing how much money is coming in and going out of your household each month. Once you’ve gotten a handle on that, you can begin to change your spending to free up more funds for what matters, like paying down debt or building an emergency fund.”

Methodology

To determine monthly debt payments, LendingTree researchers analyzed the anonymized credit reports of about 310,000 users on the LendingTree platform from July 1 to Sept. 30, 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.

Analysts calculated the average monthly payments nationally and by state and generation. To define generations, LendingTree analysts used the following ranges from the Pew Research Center:

• Generation Z (born between 1997 and 2005; ages 18 to 26 in 2023 — only Gen Z adults were included)
• Millennial (born between 1981 and 1996; ages 27 to 42 in 2023)
• Generation X (born between 1965 and 1980; ages 43 to 58 in 2023)
• Baby boomer (born between 1946 and 1964; ages 59 to 77 in 2023)