Average overall debt
This report provides a picture of average American debt through 84.9 million Credit Karma members with a combined overall debt of more than $8 trillion. Overall debt is defined as any type of debt noted on a Credit Karma member’s credit report. This includes credit card, mortgage, student loan, medical loan, auto lease and auto loan debt.
Average total debt increased year over year, with younger generations and members in the subprime score band seeing the most growth
Between October and December 2023, average total overall debt among Credit Karma members was $53,260, a 7.7% increase compared to an average of $49,454 from October to December 2022.
All generations saw an increase in debt, with Gen Z and Millennials seeing the largest growth at 19.39% and 13.4%, respectively, year over year. Similarly, all credit score bands saw an increase in total average debt, particularly members in the subprime score band, who saw a 22.46% increase compared to October to December 2022.
Increases in credit card and mortgage debt drove much of the increase in overall average debt. Average credit card debt rose across all score bands and generations (except the Silent Generation), with the largest increases in members falling in the subprime score band and in Gen Z and Millennial members. Similarly, members in the subprime and near prime score bands along with Gen Z members saw the most growth in average mortgage debt.
Average collections accounts and inquiries decreased year over year
Despite increases in average debt, there was a year-over-year decrease in the average number of open collections per member with an account in collections across all generations and score bands — except for the subprime score band, where average open collections increased from 3 per member in October to December 2022 to 3.9 in October to December 2023.
The average number of inquiries per member decreased year over year as well, dropping by 19.05%. This suggests that members, on average, racked up more debt on existing credit and loan accounts versus new ones.
Average debt among Credit Karma members broken out by generation
| Generation | Average total debt Oct.-Dec. 2022 | Average of total debt Oct.-Dec. 2023 | Percent change in debt |
|---|---|---|---|
| Generation Z | $16,283 | $19,441 | 19.39% |
| Millennial | $48,611 | $55,124 | 13.40% |
| Generation X | $61,036 | $65,364 | 7.09% |
| Baby boomers | $52,401 | $54,485 | 3.98% |
| Silent | $41,077 | $42,448 | 3.34% |
As generational age increased, the percent change of debt decreased. Gen Z saw the largest increase in debt, though their overall average debt was much lower than other generations.
Average debt among Credit Karma members by credit score band
| Credit score band | Average total debt Oct.-Dec. 2022 | Average of total debt Oct.-Dec. 2023 | Percent change in debt |
|---|---|---|---|
| Subprime (300–600) | $27,848 | $34,102 | 22.46% |
| Near prime (601–660) | $41,432 | $44,205 | 6.69% |
| Prime (661–780) | $56,758 | $59,565 | 4.95% |
| Super prime (781–850) | $68,009 | $74,843 | 10.05% |
As scores increased, so too did average overall debt. This may be because people with higher credit scores have greater access to credit on better terms. But while members with lower scores had less debt, their average total debt increased the most year over year.
Average credit card debt
In the fourth quarter of 2023, approximately 79.4 million Credit Karma members with at least one credit card held a total of nearly $473.9 billion in credit card debt.
The average credit balance among members during the period of October to December 2023 was $7,288, compared to $6,469 in October to December 2022. That represents a 12.66% increase in average credit card debt. The average next payment was $202.
Year-over-year data reveals that younger generations and members outside of prime score bands, in particular, increasingly relied on credit cards over the past year.
Average credit card debt among Credit Karma members by generation
| Generation | Average credit card debt Oct.-Dec. 2022 | Average card debt Oct.-Dec. 2023 | Percent change in credit card debt |
|---|---|---|---|
| Generation Z | $2,781 | $3,413 | 22.73% |
| Millennial | $5,898 | $7,031 | 19.21% |
| Generation X | $8,266 | $9,434 | 14.13% |
| Baby boomers | $7,464 | $7,889 | 5.69% |
| Silent | $5,649 | $5,581 | -1.20% |
Gen X continued to have the most credit card debt in the fourth quarter of 2023, but Gen Z, followed by Millennials, increased their credit card balances by the largest percent year over year.
Average credit card debt among Credit Karma members by credit score band
| Credit score band | Average credit card debt Oct.-Dec. 2022 | Average card debt Oct.-Dec. 2023 | Percent change in credit card debt |
|---|---|---|---|
| Subprime (300–600) | $5,684 | $7,279 | 28.06% |
| Near prime (601–660) | $9,295 | $10,699 | 15.10% |
| Prime (661–780) | $6,720 | $7,440 | 10.71% |
| Super prime (781–850) | $3,345 | $3,394 | 1.46% |
Members with subprime credit saw the largest increase in average card debt (28.06%), reaching nearly the same amount of average card debt as prime members.
Average auto loan debt
In the fourth quarter of 2023, approximately 59.9 million Credit Karma members with at least one auto loan open held more than $926 billion in loan debt. The average next payment was $627.
The average auto loan balance among members was $25,307, representing a 5.26% increase over the average of $24,042 in October to December 2022.
Average auto loan debt among Credit Karma members by generation
| Generation | Average auto loan debt Oct.-Dec. 2022 | Average auto loan debt Oct.-Dec. 2023 | Percent change in auto loan debt |
|---|---|---|---|
| Generation Z | $19,909 | $21,160 | 6.28% |
| Millennial | $23,766 | $25,295 | 6.43% |
| Generation X | $26,765 | $28,202 | 5.37% |
| Baby boomers | $22,530 | $23,400 | 3.86% |
| Silent | $18,539 | $19,059 | 2.80% |
Average auto loan debt among Credit Karma members by credit score band
| Credit score band | Average auto loan debt Oct.-Dec. 2022 | Average auto loan debt Oct.-Dec. 2023 | Percent change in auto loan debt |
|---|---|---|---|
| Credit score band | Average auto loan debt Oct.-Dec. 2022 | Average auto loan debt Oct.-Dec. 2023 | Percent change in auto loan debt |
| Subprime (300–600) | $21,662 | $23,766 | 9.71% |
| Near prime (601–660) | $25,130 | $26,090 | 3.82% |
| Prime (661–780) | $25,452 | $26,576 | 4.42% |
| Super prime (781–850) | $21,981 | $23,377 | 6.35% |
Average mortgage debt
In October through December 2023, approximately 31.4 million Credit Karma members with at least one mortgage held a total of nearly $5.9 trillion in mortgage debt. The average mortgage balance among members was $253,386, a 7.73% increase from $235,194 in October to December 2022. The average next payment was $1,881.
Average mortgage debt among Credit Karma members by generation
| Generation | Average mortgage debt Oct.-Dec. 2022 | Average mortgage debt Oct.-Dec. 2023 | Percent change in mortgage debt |
|---|---|---|---|
| Generation Z | $195,849 | $223,366 | 14.05% |
| Millennial | $261,484 | $285,217 | 9.08% |
| Generation X | $240,590 | $254,379 | 5.73% |
| Baby boomers | $188,034 | $195,982 | 4.23% |
| Silent | $163,702 | $170,545 | 4.18% |
Generation Z saw the largest increase in average mortgage debt year over year, though Millennials continued to have the highest average mortgage debt in October to December 2023.
Average mortgage debt among Credit Karma members by credit score band
| Credit score band | Average mortgage debt Oct.-Dec. 2022 | Average mortgage debt Oct.-Dec. 2023 | Percent change in mortgage debt |
|---|---|---|---|
| Subprime (300–600) | $185,803 | $216,570 | 16.56% |
| Near prime (601–660) | $212,044 | $235,452 | 11.04% |
| Prime (661–780) | $251,197 | $266,945 | 6.27% |
| Super prime (781–850) | $237,648 | $258,318 | 8.70% |
Members in the lower score bands saw the biggest year-over-year increases in average mortgage debt, but members with prime scores continued to have the most mortgage debt on average in October to December 2023.
Average student loan debt
In the fourth quarter of 2023, approximately 29.9 million Credit Karma members with at least one student loan open held a total of $709.7 billion across 79.4 million student loans. The average next payment was $125.
The average student loan balance among members in the fourth quarter of 2023, was $30,072, which is 4.07% lower than during October to December 2022. This was the only category of debt that experienced a decrease in average total debt year over year.
Average student loan debt among Credit Karma members by generation
| Generation | Average student loan debt Oct.-Dec. 2022 | Average student loan debt Oct.-Dec. 2023 | Percent change in student loan debt |
|---|---|---|---|
| Generation Z | $15,456 | $16,182 | 4.70% |
| Millennial | $31,297 | $29,555 | -4.29% |
| Generation X | $41,910 | $41,659 | -0.60% |
| Baby boomers | $43,554 | $44,186 | 1.45% |
| Silent | $35,453 | $36,647 | 3.37% |
Average student loan debt among Credit Karma members by credit score band
| Credit score band | Average student loan debt Oct.-Dec. 2022 | Average student loan debt Oct.-Dec. 2023 | Percent change in student loan debt |
|---|---|---|---|
| Subprime (300–600) | $28,231 | $28,302 | 0.25% |
| Near prime (601–660) | $32,165 | $29,512 | -8.25% |
| Prime (661–780) | $34,067 | $32,562 | -4.42% |
| Super prime (781–850) | $33,257 | $33,932 | 2.03% |
Average credit scores
The average VantageScore 3.0 credit score for Credit Karma members with debt was 671 in the fourth quarter of 2023, but the median was a little higher at 679. Both fall in the prime range. These scores are similar to that of members with debt in October to December 2022 — the average credit score then was 673, and the median was 682.
Average VantageScore 3.0 score among Credit Karma members with debt by generation
| Generation | Average VantageScore 3.0 Oct.-Dec. 2023 |
|---|---|
| Generation Z | 655 |
| Millennial | 666 |
| Generation X | 669 |
| Baby boomers | 702 |
| Silent | 690 |
Accounts in collections
For this report, accounts in collections are any credit card, mortgage, student loan, medical loan, auto lease or auto loan accounts that have been sent to collections agencies, according to their credit reports. Creditors may have different standards for when they transfer debt to collections, but the typical cutoff is 120 to 150 days past due. For this report, we’re able to determine if an account is in collections but not how many days past due it is.
Among Credit Karma members with accounts in collections, the average number of open accounts in October through December 2023 was 2.3 — lower than 2.6 in October through December 2022. In fact, the average number of open collection accounts decreased year over year across generations and score bands, with the exception of members in the subprime score band, who saw a year-over-year increase from an average of 3 open collections accounts to 3.92.
Keep in mind that this measure only looks at members who have accounts in collections, not the Credit Karma member population as a whole. That means that it only captures people who are already potentially struggling with their finances.
Average number of accounts in collections by VantageScore 3.0 credit score band
| Credit score band | Average number of accounts in collections for Credit Karma members Oct.-Dec. 2022 | Average number of accounts in collections for Credit Karma members Oct.-Dec. 2023 | Percent change in accounts in collections |
|---|---|---|---|
| Subprime (300–600) | 3 | 3.92 | 30.67% |
| Near prime (601–660) | 2.3 | 1.98 | -13.91% |
| Prime (661–780) | 1.65 | 1.3 | -21.21% |
| Super prime (781–850) | 1.31 | 0.95 | -27.48% |
Average credit inquiries
For this report, credit inquiries are applications for new credit, such as credit cards or loans. During October through December 2023, Credit Karma members averaged 3.4 credit inquiries, down by nearly one inquiry on average from 4.2 in October through December 2022.
The average number of inquiries dropped across all score bands and generations, with the exception of the Silent Generation (up slightly year over year from 2.97 to 3.1), revealing that members applied for fewer credit and loan products toward the end of 2022 compared to the end of 2023.
Average number of credit inquiries by Credit Karma members by VantageScore 3.0 credit score band
| Credit score band | Average number of inquiries for Credit Karma members Oct.-Dec. 2022 | Average number of inquiries for Credit Karma members Oct.-Dec. 2023 | Percent change in inquiries |
|---|---|---|---|
| Subprime (300–600) | 5.8 | 5.32 | -8.28% |
| Near prime (601–660) | 4.5 | 4.14 | -8.00% |
| Prime (661–780) | 3.18 | 2.97 | -6.60% |
| Super prime (781–850) | 2.21 | 1.98 | -10.41% |
Average number of credit inquiries by Credit Karma members by generation
| Generation | Average number of inquiries for Credit Karma members Oct.-Dec. 2022 | Average number of inquiries for Credit Karma members Oct.-Dec. 2023 | Percent change in inquiries |
|---|---|---|---|
| Generation Z | 3.58 | 3.08 | -13.97% |
| Millennial | 4.19 | 3.46 | -17.42% |
| Generation X | 4.69 | 3.92 | -16.42% |
| Baby boomers | 3.77 | 3.62 | -3.98% |
| Silent | 2.97 | 3.1 | 4.38% |
Methodology
This report drew on insights from the aggregated reports of roughly 85 million Credit Karma users. All aggregate data analyzed was pulled on January 4, 2024, and came from members’ TransUnion credit reports. Averages were based on information from the previous 90 days.