American non-mortgage debt has plummeted nearly 24% in major metros, but Gen X still shoulders a staggering $26,207 in personal loans, credit cards, auto loans, and student debt despite the broad national decrease.
Key Takeaways
- The median non-mortgage debt in America’s 100 largest metropolitan areas has dropped to $18,762, a 23.9% decrease from $24,668 last year.
- Gen X (ages 45-60) carries the highest median debt at $26,207, followed by millennials at $24,810, while baby boomers saw the largest percentage decrease at 45.3%.
- Despite overall non-mortgage debt declining, total U.S. consumer debt reached $17.57 trillion in Q3 2024, with credit card debt growing at an alarming 8.6% from 2023.
- Student loan debt decreased significantly (16.8%) due to federal loan cancellations, while mortgage debt and HELOCs continue to rise.
- El Paso, Texas has become a debt hotspot for Gen X, where the median non-mortgage debt reaches a staggering $40,709.
Americans Seeing Relief in Non-Mortgage Debt
A significant trend is emerging across America’s financial landscape as non-mortgage debt levels show substantial improvement. According to a recent LendingTree report, Americans in the 100 largest metropolitan areas now carry a median non-mortgage debt of $18,762, representing a dramatic 23.9% reduction from $24,668 last year. This debt category encompasses personal loans, auto loans, credit cards, and student loans, providing a comprehensive picture of Americans’ financial obligations outside of housing costs. The decrease spans across all generational groups, with baby boomers leading the decline with a remarkable 45.3% reduction, while other generations experienced decreases ranging from 18% to 23%.
“Americans in 100 of the largest metros now have a median non-mortgage debt of $18,762 across four generations—baby boomers, Gen X, millennials, and Gen Z—which is down 23.9 percent compared to $24,668 last year,” reported LendingTree in their June 24 analysis.
“I think it’s a further sign that people are being cautious and looking to firm up their financial foundation amid all the economic uncertainty we’re facing today. They’re trying to focus on paying down high-interest debt and building their emergency fund. With that in mind, they may choose to put off bigger-ticket purchases such as cars and kitchen appliances,” explains Matt Schulz.
Generational Debt Burden Shows Stark Differences
The financial picture varies dramatically across generations, with Gen X (ages 45-60) bearing the heaviest debt burden. This demographic carries a median non-mortgage debt of $26,207, significantly higher than other age groups. Millennials (ages 29-44) follow closely with $24,810 in median debt. Meanwhile, Gen Z (ages 18-28) and baby boomers (ages 61-79) maintain comparatively lower debt profiles at $12,715 and $10,272 respectively. These figures highlight how middle-aged Americans are disproportionately affected by financial obligations, likely due to a combination of family responsibilities, education costs for children, and ongoing career investments.
Geographic variations in debt loads are equally revealing. Gen X residents in El Paso, Texas, face the nation’s highest median non-mortgage debt at a staggering $40,709. For millennials, McAllen, Texas, represents the highest debt burden with $36,043. Among Gen Z, North Port, Florida, tops the list with median non-mortgage debt reaching $20,021. These regional disparities point to local economic conditions, cost of living factors, and employment opportunities significantly influencing debt accumulation patterns across different parts of the country, creating financial pressure points that defy national averages.
Credit Card and Auto Loan Debt Remain Significant Concerns
Credit card debt continues to be a widespread financial challenge across all generations, with usage rates ranging from 70.2% among Gen Z to an astonishing 92.6% among baby boomers. Gen X residents in Bridgeport, Connecticut, face the highest median credit card debt at $8,656. These figures are particularly concerning given that overall credit card debt increased by 8.6% from 2023 to 2024, while interest rates remain punishingly high. For Americans carrying revolving balances, this combination creates a perfect storm for financial distress that can quickly spiral out of control.
“Overall debt levels remain elevated and delinquency continues to rise, albeit at a slower pace. However, consumers seem to remain well-positioned,” notes Josee Farmer.
Auto loan debt presents another significant burden, particularly for Gen X, where 51.5% carry such loans with a median balance of $23,350. This high figure reflects both the increased cost of vehicles and the essential nature of automobile ownership for many Americans, especially those in suburban and rural areas where public transportation options are limited. With auto loan debt increasing by 1.5% nationally and high monthly payments becoming the norm, vehicle financing represents a growing strain on household budgets that shows little sign of abating despite the broader debt reduction trends.
Mixed Signals in Overall Consumer Debt Landscape
While non-mortgage debt shows encouraging signs of reduction, the broader consumer debt picture presents a more complex reality. Total U.S. consumer debt reached $17.57 trillion in Q3 2024, a 2.4% increase from 2023. Mortgage debt, which remains the largest component of consumer debt, increased by 4.2%, while Home Equity Lines of Credit (HELOCs) surged by 9.7%. These increases reflect continued property value appreciation and homeowners tapping into their equity, often to consolidate other debts or fund major expenses at rates lower than credit cards or personal loans.
One bright spot in the debt landscape is student loans, which decreased by 16.8% due to federal loan cancellations implemented under the Biden administration. Personal loan debt also declined by 3.2%, suggesting that Americans may be prioritizing paying down these obligations. As President Trump begins his second term, the outlook for consumer borrowing in 2025 remains uncertain, with potential impacts from changes in interest rates and financial regulations. Whatever policy changes emerge, the data clearly shows that Americans are taking steps to reduce certain types of debt even as others continue to grow.
