Northwestern Mutual announced in a recent press release the results of its 2023 Planning and Progress study, which found that the average American’s personal debt exclusive of mortgages is $21,800 — $8,000 less than what people reported in 2019.
While 35% of Americans say they’re carrying close to or at their highest level of debt ever, 43% say they’re currently carrying close to or at their lowest level of debt ever.
According to the study, credit cards account for more than double any other single source of personal debt.
People who carry personal debt say 30% of their monthly income goes toward paying it off, and most also expect to remain in debt for years.
With respect to priorities, the research found that most people’s instincts are to get out of debt before building savings. Sixty-one percent say they prioritize paying down debt, versus 39% who put saving first.
The study results indicate that student debt still weighs heavily on younger generations. Overall, 5% of survey participants cited personal education loans as their top source of debt. For Gen Z, it’s more than triple that at 17%, and for millennials it’s double at 10%.
