According to a report released by the financial services company LendingTree on June 24, 2025, the median debt for “non-mortgage” across four generations of residents in the top 100 metropolitan areas in the United States is currently $18,762, which has decreased by 23.9% from last year’s $24,668.
Non-mortgage debt includes personal loans, car loans, credit cards, student loans, and other debts. Among the generations, Generation X (ages 45-60) has the highest debt with a median of $26,207. Following are Millennials (ages 29-44) at $24,810, Generation Z (ages 18-28) at $12,715, and Baby Boomers (ages 61-79) at $10,272.
The median debt for all four generations has decreased, with the Baby Boomer generation having the largest decline at 45.3%. The other three generations saw decreases ranging from 18% to 23%.
Matt Schulz, Chief Consumer Financial Analyst at LendingTree, stated that the debt decrease across generations is a significant change. “I think this further demonstrates that people are becoming more cautious and working to solidify their financial foundation in the current uncertain economic situation,” he said. “They are focusing on paying off high-interest debt and building emergency funds. In this context, they may choose to delay purchasing big-ticket items such as cars and kitchen appliances.”
When segmented by debt type, the situations vary among the generations. For instance, 92.6% of Baby Boomers have credit card debt, while the percentage is 70.2% for Generation Z. Regarding car loans, 51.5% of Generation X carries this debt burden, compared to 35.8% for Baby Boomers.
The report notes that “Generation Z is the most likely group to have student loan debt, but Generation X bears the heaviest burden of student loans.” While 38.1% of Generation Z has student loan debt, their median debt is the lowest at $13,391. In contrast, only 22.5% of Generation X holds student loan debt, but their median student loan debt is a high $33,988.
This analysis is based on half a million anonymous credit reports from October 1, 2024, to March 31, 2025.
According to a statement from the New York Federal Reserve on May 13, 2025, in the first quarter of 2025, total household debt in the United States reached $18.2 trillion.
Out of this $18.2 trillion, about $13.2 trillion (approximately 72.5%) is mortgage debt and home equity line of credit. The remaining $5 trillion consists of non-mortgage debt, with auto loans at $1.64 trillion, followed by student loans at $1.63 trillion.
According to a survey released by consumer credit reporting agency Experian on April 2, 2025, Americans are tackling their debt through various means. The survey revealed that 45% of adults successfully paid off “unmanageable debt” by using budget management programs, part-time work, or side hustles.
Half of the respondents stated that life became easier, less stressful, and more peaceful after paying off debt.
Rod Griffin, Senior Director of Consumer Education and Advocacy at Experian, mentioned, “Unmanageable debt can have negative impacts on all aspects of consumer life. While credit can be a useful tool to achieve certain financial goals, it must be used wisely.”
“It’s encouraging to see people showing firm determination to pay off debt, which will help improve credit scores, increase savings, and reduce stress, paving the way for a more prosperous and happier future,” Griffin said.
Properly managing debt is indeed one key to achieving financial stability, but another equally important factor is saving. Since 2022, the personal savings rate of Americans has mostly been below 5%, a significant change compared to the pre-pandemic situation where it was usually above 5%.
According to a survey by Santander Bank on February 26, 2025, Americans faced multiple savings obstacles in the past year, including paying too many bills, unexpected expenses, and pressures of debt repayment. However, there are positive trends as well. The report indicated that 70% of Americans are optimistic about increasing savings in 2025, with the younger generation being the most confident.