The Average American Has This Much Debt. How Does Yours Compare?
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Paying down debt is the top money goal for many Americans heading into 2026. But "being in debt" can mean very different things depending on the household. For some, it's about getting rid of high-interest credit card balances. For others, it's the long game of paying off a mortgage.
Right now, the average U.S. household carries $105,056 in total debt. Here's how that total breaks down across mortgages and credit cards.
Average household debt breakdown
As of the third quarter of 2025, total household debt in the U.S. hit $18.585 trillion. Divided across Americans, that works out to an average of $105,056 per household.
Most of that debt (70%) comes from mortgages, with the average mortgage balance at $268,060. Mortgage debt is generally less concerning than other forms of borrowing, because home loans usually have lower interest rates and they help families build equity over time.
Credit card debt is a different story. Right now the average credit card debt is about $6,523 per household, and we've surpassed $1.23 trillion in total across the country. While credit card balances are a lower dollar amount, they usually have the highest interest rates. That makes it both expensive and stressful to carry.
And the longer credit card balances stick around, the more they cost in interest. The good news is that there are ways to make this type of debt more manageable -- and, in some cases, pay it off faster.
1. Consider a balance transfer
If you have good credit, a balance transfer could be worth considering. This involves moving your existing balance to a new credit card that offers a 0% intro APR.
Many balance transfer cards can give you a break from interest for 12 months, 15 months, or even up to 21 months. See a list of the top balance transfer credit cards you can apply for today.
The goal is to pay down as much debt as possible before the introductory period ends and interest charges kick back in. It can also help to look for ways to free up extra cash during that window. Picking up a side job or freelance work could help you put more money toward your balances.
2. Consolidate your debt via a personal loan
Personal loans usually come with lower interest rates than credit cards, especially if your credit is in decent shape. They also usually have fixed interest rates, which means your monthly payment stays the same from month to month.
That kind of consistency can go a long way. Instead of juggling multiple credit card bills with changing minimums, you only have to worry about a single predictable payment over a set timeline to pay off your debt.
If this sounds like a good fit, it's always worth comparing top personal loan lenders to find the one with the best rates and terms for you.
3. Consolidate via a home equity loan
Most people think home equity loans can only be used for home repairs or renovations. In reality, there are a ton of use cases, including consolidating debt.
If you've built up a decent amount of equity, you could get a home equity loan with a lower interest rate than your credit card or personal loan.
That said, borrowing against your home isn't 100% risk free. If you fall behind on payments, you could ultimately put your home at risk. Still, for homeowners who've been in their property for a while and have steady income, this option may be worth considering.
It's also important to understand the difference between a home equity loan and a home equity line of credit (HELOC). HELOCs typically have variable interest rates, which can make repayment harder if rates rise. Because of that, some borrowers prefer the predictability of a traditional home equity loan.
The bottom line
If your debt feels overwhelming, you're far from alone. The good news is that there are options available that can help make it more manageable.
And if you're handling your mortgage payments comfortably, there's usually no need to rush to pay that loan off early. Putting extra focus on higher-interest debt -- like credit cards -- can often have a much bigger impact on your overall financial health.
If high-interest credit card balances are your biggest hurdle right now, a balance transfer card could help lower your costs. Check out our picks for 0% intro APR credit cards to see which options may fit your situation.
Our Research Expert
Joel O’Leary is a full-time Personal Finance Writer at Motley Fool Money, covering credit cards, bank accounts, investing, mortgages, and other personal finance topics. Joel has been writing about personal finance since 2018, previously leading editorial content for the How To Money podcast and serving as a resident writer at Budgets Are Sexy. He bought his first rental property at age 18, funding the down payment with savings from his high school job at McDonald’s -- a testament to his lifelong passion for smart money decisions. His work aims to make personal finance accessible and actionable for everyday readers. When he’s not writing, Joel enjoys surfing and spending time with his family.