Average U.S. Household Debt Around $152,000 As Of Second Quarter

The average household debt for Americans has been rapidly increasing in recent years, with credit card debt hitting all-time highs recently. According to a WalletHub report, the average U.S. household debt now sits at about $152,000 as of the end of the second quarter. That number is just $13,000 shy of the all-time high.

The majority of that debt lies with the fallout of the disastrous Bidenomics policies of the previous administration. Costs rose and left people having to abuse credit cards to afford basic necessities. Home prices also rose, as did mortgage rates, which led to even more debt among Americans. But, it is not all bad, especially at President Trump's economy begins to settle.

Bankrate's Ted Rossman says in the context of debt growth, we are actually in a manageable situation.

"Four or five years ago, debt was groiwng around ten percent year over year....now the annual growth rate is around three percent," he says.

Total debt across all households equates to approximately $18 trillion as of Q2, up one percent from the previous quarter. Mortgages accounted for $12 billion of that total alone. Auto debts accounted for another $1.6 trillion, credit card debt was around $1.2 trillion, and $1.63 trillion was in student loans.

But thanks to the incoming Trump economy, things are looking up.

"It feels manageable when we consider the job market has been strong, the debt-to-income ratio is pretty low on a histroic basis...wage growth has been outpacing inflation...in some respects, we would espect that to grow over time," says Rossman.

Now you may see that and think nothing it happening. Costs are still high, albeit they are coming down slowly. Egg prices have fallen, inflation has fallen, and gas prices have come down. Still expensive, but are coming down.

That plus the mounting debt might make it seem like there is no end in sight. BUt as the months go on in 2025, the positive trend should begin building.

"It is just not everyone is feeling that equally...there is certainly a lot of worries, especially when it comes to consumer sentiment...but so far, the economy is performing better than expected," Rossman says.

He adds that as more positivity gets flowing, Ameircans need to do a better job of paying down their debt. In turn, that could fuel the economic resurgence that President Trump promised.