First Midwest BankFirst Midwest Bank logoArrow DownIcon of an arrow pointing downwardsArrow LeftIcon of an arrow pointing to the leftArrow RightIcon of an arrow pointing to the rightArrow UpIcon of an arrow pointing upwardsBank IconIcon of a bank buildingCheck IconIcon of a bank checkCheckmark IconIcon of a checkmarkCredit-Card IconIcon of a credit-cardFunds IconIcon of hands holding a bag of moneyAlert IconIcon of an exclaimation markIdea IconIcon of a bright light bulbKey IconIcon of a keyLock IconIcon of a padlockMail IconIcon of an envelopeMobile Banking IconIcon of a mobile phone with a dollar sign in a speech bubbleMoney in Home IconIcon of a dollar sign inside of a housePhone IconIcon of a phone handsetPlanning IconIcon of a compassReload IconIcon of two arrows pointing head to tail in a circleSearch IconIcon of a magnifying glassFacebook IconIcon of the Facebook logoLinkedIn IconIcon of the LinkedIn LogoXX Symbol, typically used to close a menu
FDIC-Insured - Backed by the full faith and credit of the U.S. Government

Suggested Search Terms

    Suggested Search Terms

      Zz01YzY5MDRkMDBlYzMxMWYxYTk2MGVlZmUzMTIyNTM4Ng==.jpg
      Get Insights

      Get monthly ideas delivered right to your inbox.

      Subscribe for Insights

      For Your Life Joel O'Leary February 23, 2026

      The Average American Has This Much Debt. How Does Yours Compare?

      Paying down debt is the #1 top financial goal for Americans in 2026. But what that looks like varies widely from family to family. For some, the biggest pain point is high-interest credit cards. For others, it's working toward becoming mortgage-free.

      According to data from the Federal Reserve and Motley Fool Money Research, the average U.S. household now carries $105,056 in total debt — with a nationwide total of $18.58 trillion as of the third quarter of 2025.

      Here's how that number breaks down and what you can do to get ahead.

      Breakdown of Debt

      The average U.S. household carries $105,056 in total debt, but that number alone doesn't tell the full story. It's more helpful to break things down by debt type, because not everyone has a mortgage, student loans, or a car payment. Here's what the average household debt looks like by category:

      • Mortgage: $268,060
      • Credit cards: $6,523
      • Auto loan: $24,602
      • Personal loan: $11,274
      • Home equity line of credit (HELOC): $45,157
      • Student loans (federal): $39,057

      Mortgages make up the largest share by far, but are arguably the least painful type of debt due to low, fixed interest rates. Credit card debt shows as the lowest balance on average. But it's often the most expensive and emotionally draining type of debt due to high interest rates.

      Strategies to Help Tackle Your Debt

      Use a 0% Intro APR Balance Transfer Card

      If credit card debt is weighing you down, consider moving your balance to a card with a 0% intro APR. These offers give you a set period (some up to 21 months) to pay down your balance interest-free.

      That break from compounding interest can save you hundreds (or even thousands) if you use the time to aggressively pay down the debt.

      Refinance Your Mortgage or Auto Loan

      If you're carrying mortgage or car loan debt, refinancing could lead to lower rates or monthly payments — especially as interest rates begin to ease in 2026.

      Even a 0.50% to 1.00% rate drop can add up to major savings over the life of a loan. You may also be able to reset your loan term or switch to a more predictable payment structure.

      It's super easy to shop around for mortgage and personal loan rates these days. Just pay attention to any refinance fees.

      Get Help From Credit Counseling Agencies

      If your debt feels truly overwhelming, it's ok to seek help. You are definitely not alone.

      Nonprofit credit counseling agencies can offer free or low-cost guidance, and even help you negotiate lower rates through structured payoff programs.

      Two trustworthy resources to check out are Money Management International (MMI) and National Foundation for Credit Counseling (NFCC). They're especially helpful if you're behind on payments or unsure where to start.

      If you feel like you have too much debit piled up, set up some time to meet with an Old National banker for a free financial review.

      This article was written by Joel O'Leary from The Motley Fool and was legally licensed through the DiveMarketplace by Industry Dive. Please direct all licensing questions to legal@industrydive.com.

      Subscribe for Insights

      Subscribe