What percentage of Americans are debt free?

About 23% of Americans are debt-free, encompassing all debt types, though this varies significantly by age, with younger adults (18-22) much more likely to be debt-free (around 54%) than older groups, while younger-middle-aged adults (38-52) carry the highest debt loads. While many desire debt freedom, with 84% seeing it as part of the American Dream, actual debt-free living is less common, with surveys showing only about 1 in 10 feeling truly financially free.

How many Americans are 100% debt free?

Around 23% of Americans are debt free, according to the most recent data available from the Federal Reserve.

How much debt does an average American have?

The average American carries around $105,000 in total debt, with significant variations by age, as of late 2024/early 2025 data, primarily driven by large mortgage balances, though credit card and auto loan debt also contribute, with Gen X and Millennials often holding the highest amounts. 

What percentage of people are completely debt free?

Roughly 23% of Americans are completely debt-free, meaning they have no mortgages, student loans, car loans, or credit card balances, though this number can vary slightly by source and survey, with some studies showing slightly higher or lower figures depending on what debt is included and demographics. While many people aspire to be debt-free, debt remains common, with a significant portion of adults carrying various forms of debt, especially mortgages, as noted by National Debt Relief and WalletHub. 

Are 80% of Americans in debt?

This debt, often referred to as “household debt,” represents the total amount owed by individuals for obligations such as mortgages, student loans, credit cards, and auto loans. These figures represent the average debt owed by US residents with a credit score, which includes roughly 80% of adults.

20 Percent of Americans Are Debt Free

How many Americans have $20,000 in credit card debt?

A majority of Americans (53%) carry some, with an average balance of $7,719. However, a third of those carrying debt (32%) owe $10,000 or more, while almost 1 in 10 (9%) have credit card debt over $20,000.

Is being debt free the new rich?

Yes, for many people, being debt-free feels like the new rich because it provides immense financial freedom, peace of mind, and security, even if it doesn't mean having millions in the bank; it shifts the definition of wealth from pure income to a lack of financial burdens, allowing for more saving, investing, and enjoying life without stress. While traditional wealth is assets minus liabilities, eliminating debt frees up income for wealth-building, making it a significant step towards financial well-being and independence, especially as many struggle with rising costs and stagnant wages. 

What is the credit card limit for $70,000 salary?

The credit limit you can expect for a $70,000 salary across all your credit cards could be as much as $14000 to $21000, or even higher in some cases, according to our research. The exact amount depends heavily on multiple factors, like your credit score and how many credit lines you have open.

Do the richest people have debt?

Yes, many rich people are in debt, but they use it strategically as a tool for wealth building (like leverage for investments) rather than for consumption, unlike typical consumer debt, allowing them to grow assets, avoid taxes, and gain liquidity without selling appreciated stocks, which makes them wealthier, not poorer.
 

Is it bad to be completely debt-free?

Being debt-free can mean less activity on your credit history and potentially even hurt your credit score. Higher mortgage rates: A major downside of going debt-free negatively impacts your credit score is that you might not get the best deals on things like mortgages.

What is considered a lot of debt?

A lot of debt is generally considered to be when your Debt-to-Income (DTI) ratio exceeds 43%, meaning over 43% of your gross monthly income goes to debt payments, signaling high risk; however, debt becomes a problem when it causes stress, prevents savings, or requires minimum payments, with a DTI over 36% considered high and 43%+ risky, and the type of debt (high-interest credit cards vs. low-interest mortgages) and your ability to cover essentials also matter significantly. 

What is the average US credit card debt?

As of late 2025, the average U.S. credit card debt varies slightly by source but generally sits around $6,500 to $7,700 per person carrying debt, with figures like $6,730 (WalletHub) or $6,523 (TransUnion) for average balances, while those with debt average around $7,719. For all households (including those with no debt), the average is higher, around $10,000-$11,000, with Gen X often carrying the most debt and younger generations less. 

What percentage of Americans are struggling financially?

A significant portion of Americans struggle financially, with recent data showing around one-third (32%) in crisis or struggling, nearly half (49%) living paycheck to paycheck, and many finding basic necessities hard to afford, highlighting broad economic strain across different demographics. While some reports show percentages around 27% reporting "just getting by" or "difficult to get by," other measures, like living paycheck to paycheck or struggling with expenses, suggest the struggle impacts far more, possibly up to 67% or more when considering various aspects like debt and unexpected costs. 

Is it normal to have no credit card debt?

With the average credit card debt in America reaching nearly $6,0001 it can sometimes feel like credit card debt is simply part of life. But it doesn't need to be. It's possible to live without credit card debt – and there are people with zero credit card debt to prove it.

Which gender has more debt?

Men have 2 percent more credit card debt than women. Men have 9.7 percent more mortgage debt than women. Men have 20 percent more personal loan debt than women. Women have 2.7 percent more student loan debt than men.

Which actor wiped out debt for 900 families?

Actor Michael Sheen paid off $1.3 million worth of debt for his neighbors. Plus, this guy has been diving for lost golf balls for 30 years.

What profession has the most debt?

Future medical professionals—a category that includes doctors, dentists, and pharmacists—can expect to take on the most debt to finance their degrees—over $190,000 in student loans. Future lawyers take on six-figure debt amounts to finance their degrees, too—over $139,000 in student loans.

How long would it take to spend $1 billion at $10,000 a day?

Spending $1 billion at a rate of $10,000 per day would take 273.94 years, or approximately 274 years, because you divide the total amount ($1,000,000,000) by the daily spending ($10,000), resulting in 100,000 days, which then converts to about 274 years. 

What credit score do you need for a $400,000 house?

Credit Score

When applying for a $400,000 home, lenders evaluate your credit scores to determine eligibility and the rates you'll receive: 740+: Best rates and terms. 700-739: Slightly higher rates. 660-699: Higher rates, may require larger down payment.

Should a $20000 credit card have a $6000 balance?

How Much You Should Spend With a $20,000 Credit Limit. Spending between $200 and $2,000 per month is best for your credit score. You should avoid having a balance above $6,000 when your monthly statement gets generated. Even if you spend $0, your credit score will still improve just by having the account open.

What is a respectable credit limit?

A good credit limit varies but is generally high enough to keep your credit utilization low (under 30%, ideally under 10%) while reflecting your income and creditworthiness, often starting around $1,000 for new users and potentially reaching tens of thousands for established individuals with excellent credit and income. A limit around $5,000-$10,000 is good for average users, while higher limits ($20k+) are for excellent credit and high earners. 

How does Dave Ramsey say to pay off debt?

How Does the Debt Snowball Method Work?

1. Step 1: List your debts from smallest to largest (regardless of interest rate).
2. Step 2: Make minimum payments on all your debts except the smallest debt.
3. Step 3: Throw as much extra money as you can on your smallest debt until it's gone.

What do 90% of millionaires have in common?

The famed wealthy entrepreneur Andrew Carnegie famously said more than a century ago, “Ninety percent of all millionaires become so through owning real estate. More money has been made in real estate than in all industrial investments combined.

What is the 2 2 2 credit rule?

The 2-2-2 credit rule is a guideline for lenders, especially for mortgages, suggesting borrowers should have at least two active credit accounts, open for at least two years, with at least two years of on-time payments, sometimes also requiring a minimum credit limit (like $2,000) for each. It shows lenders you can consistently manage multiple debts, building confidence in your financial responsibility beyond just a high credit score, and helps you qualify for larger loans.