The financial landscape of the United States often involves significant levels of household debt, a reality for a large majority of families. According to recent data from the Federal Reserve Bank of New York, total household debt in the U.S. reached a new high of $18.2 trillion in the first quarter of 2025. This figure represents a notable increase from the previous quarter and a substantial rise of $4.06 trillion since the end of 2019, just prior to the onset of the COVID-19 pandemic. Understanding this overall debt burden provides essential context for examining individual financial situations across the nation.
Drilling down from the aggregate numbers, we see various components making up this debt picture. Data from Experian in the third quarter of 2024 indicates the average debt per American is $105,056 across different categories, including mortgages, home equity lines of credit (HELOCs), auto loans, credit card debt, student loan debt, and other consumer debts like personal loans. Within this total, mortgage debt stands out as the heavyweight, comprising the largest portion of household debt. The Federal Reserve Bank of New York reports that 70% of total U.S. household debt is from mortgages. Experian data shows the average mortgage debt per borrower was $252,505 in the third quarter of 2024.
While these national averages provide a snapshot, the reality of debt varies significantly depending on where one lives. The cost of living, particularly housing prices, tends to play a major role in the amount of debt residents accumulate. Analyzing average debt levels by state offers a more granular view of the financial obligations carried by Americans across different regions. Based on Experian data from the third quarter of 2024 detailing average debt per resident, we can identify the states where this burden is notably higher than the national average. Let’s take a closer look at the states carrying the heaviest average debt loads per resident.
1. **Colorado**: According to Experian data from the third quarter of 2024, Colorado residents carry the highest average debt per resident in the U.S., standing at $156,097. This figure is significantly above the national average of $105,056, highlighting the substantial financial commitments common among those living in the state. Understanding the composition of this debt requires looking at the various loan types that contribute to the total.
Mortgage debt typically forms the largest part of an American household’s debt. In Colorado, the average mortgage balance per borrower was $342,594 as of the third quarter of 2024, according to Experian. This high average mortgage balance is a likely significant driver of the state’s overall high average debt figure, aligning with the national trend where mortgage debt represents 70% of total U.S. household debt. The national average mortgage debt in Q3 2024 was $252,505, illustrating how Colorado’s average mortgage balance contributes to its elevated position on the list.
Beyond mortgages, other debt types like HELOCs, auto loans, credit cards, and student loans also factor into the total average debt. While the specific breakdown for Colorado isn’t provided, the high overall average suggests that residents may carry larger balances across multiple categories. The national picture shows average balances like $45,157 for HELOCs, $24,297 for auto loans, $6,730 for credit card debt, and $35,208 for student loan debt in Q3 2024. These components, combined with the substantial mortgage debt, underpin Colorado’s top ranking in average debt per resident.
2. **California**: California follows closely with the second-highest average debt per resident, recorded at $152,142 in the third quarter of 2024 by Experian. This figure also significantly exceeds the national average, underscoring the high financial obligations faced by many Californians. The cost of living, particularly housing, is a major factor influencing debt levels in the state.
Indeed, California stands out in terms of mortgage debt. Experian data from Q3 2024 shows the average mortgage balance per borrower in California was $445,250, the highest among the states explicitly listed with top average mortgage balances after the District of Columbia. The context explicitly notes, “California residents, for example, tend to have higher average mortgage balances than many other states with more affordable housing, like Texas and Ohio.” This direct correlation between housing affordability and mortgage debt levels provides a clear explanation for a significant portion of California’s high average debt.
The prevalence of high-value homes means that even with low interest rates, the principal amounts borrowed are substantial, leading to large mortgage balances. The context also mentions that “more than half of which [cities where average mortgage balance exceeds $1 million] are in California,” further illustrating the impact of high property values on debt figures in the state. While other debt types contribute, the dominant role of mortgage debt in the overall household debt landscape means California’s housing market significantly influences its high ranking in average debt per resident.
3. **Washington**: Ranking as the third state with the highest average debt per resident, Washington residents held an average debt of $150,423 in the third quarter of 2024, according to Experian data. Like Colorado and California, this figure is well above the national average, pointing to considerable financial commitments within the state’s population. Examining the types of debt prevalent in Washington helps explain this higher-than-average burden.
Mortgage debt is a key factor in Washington’s debt profile, similar to the other highly ranked states. Experian data from Q3 2024 shows the average mortgage balance per borrower in Washington was $351,622. Given that mortgage debt constitutes the largest share of household debt nationwide (70% of the total) with a national average of $252,505 in Q3 2024, the higher average mortgage balance in Washington contributes significantly to its position on this list.
The rise in mortgage debt across the U.S. has been notable, especially since the pandemic, driven by increases in home prices and interest rates. While a mortgage is often considered “good” debt because it builds equity, the sheer size of mortgage balances in states like Washington elevates the overall average debt per resident. The combination of substantial mortgage obligations and other consumer debt types leads to Washington’s ranking among states with the highest average debt loads.
4. **Hawaii**: In the third quarter of 2024, Hawaii’s average debt per resident stood at $148,924, placing it fourth on the list of states with the highest average debt, according to Experian data. This high figure reflects the considerable financial obligations common among residents of the islands, extending across various debt categories.
In the third quarter of 2024, Hawaii’s average debt per resident stood at $148,924, placing it fourth on the list of states with the highest average debt, according to Experian data. This high figure reflects the considerable financial obligations common among residents of the islands, extending across various debt categories.
Hawaii appears in the context’s specific lists of states with high balances for both mortgages and credit cards. According to Experian Q3 2024 data, the average mortgage balance per borrower in Hawaii was $409,068, ranking it high in this category. Furthermore, TransUnion data from May 2025 indicated Hawaii had one of the highest average credit card balances, at $7,216, compared to the national average credit card debt reported by Experian ($6,730 in Q3 2024).
This combination of high average mortgage debt, likely driven by high housing costs, and elevated average credit card balances contributes substantially to Hawaii’s overall high average debt per resident. Carrying both large secured debt (mortgage) and high-interest unsecured debt (credit cards) can present unique financial challenges for households. The presence of significant debt in these two major categories positions Hawaii among the states with the heaviest debt burdens.
5. **Utah**: Experian data from the third quarter of 2024 shows Utah with an average debt per resident of $141,750, making it the fifth state on this list. This figure is considerably higher than the national average, indicating that residents in Utah tend to carry greater financial obligations across various types of debt compared to many other states.
Although Utah is not specifically named in the context’s shorter lists of states with the highest average mortgage or credit card balances, its high overall average debt suggests significant balances are held by its residents across one or more major debt categories. Given that mortgage debt is the largest component of household debt nationwide, it is highly probable that elevated mortgage balances play a key role in Utah’s high average debt figure. The dynamics of the local housing market likely influence these balances.
Understanding the demographics of debt can also offer insight, even if not state-specific. The context notes that debt tends to peak around middle age, with Generation X (44-59 years old) holding the highest average total debt. Millennials (28-43 years old) have the highest average mortgage debt. These generational patterns in debt accumulation contribute to the overall average debt observed in states like Utah, reflecting the life stage and financial decisions of the population.
6. **Massachusetts**: Massachusetts ranks as the sixth state with the highest average debt per resident, recorded at $131,517 in the third quarter of 2024, according to Experian data. This average is well above the national figure, placing Massachusetts among the states where residents carry a significant financial burden. The composition of this debt reflects factors influenced by the regional economy and cost of living.
Like Utah, Massachusetts is not individually highlighted in the context’s specific lists of states with the highest average mortgage or credit card balances. However, its high position on the comprehensive list of average debt per resident implies substantial debt across one or more categories. Considering the dominance of mortgage debt in the overall household debt landscape, it is reasonable to infer that higher-than-average mortgage balances likely contribute significantly to the total average debt in Massachusetts.
The context points out that “where someone lives tends to have a big influence on the amount of debt they accumulate,” citing factors like housing prices and cost of living. Massachusetts is known for having a relatively high cost of living, particularly in housing. This economic environment likely contributes to residents taking on larger mortgages and potentially other forms of debt, culminating in a higher average debt per resident compared to states with lower costs. The financial decisions and obligations of residents, influenced by the state’s economic conditions, place Massachusetts on this list of states with high average debt.
Continuing our examination of states grappling with significant financial obligations, we delve into the next set of states with the highest average debt per resident. These figures, derived from Experian data from the third quarter of 2024, underscore how widely debt burdens can vary across the nation, influenced by a complex interplay of local economies, cost of living, and individual financial decisions. While the national average debt per American stood at $105,056 at that time, these states represent areas where residents typically carry considerably higher balances across various debt types.
Exploring these further states helps paint a more complete picture of the financial pressures faced by residents in different regions. It’s not just about the sheer dollar amount but also the context—the types of debt that constitute these totals, the demographic factors at play, and the broader economic environment that shapes these figures. Understanding these dynamics is crucial for comprehending the financial well-being of Americans state by state.
7. **Virginia**: Coming in as the seventh state on our list, residents in Virginia held an average debt of $127,249 in the third quarter of 2024, according to Experian data. This figure places Virginia well above the national average debt per resident of $105,056, signifying that a typical Virginian carries a notably larger financial load compared to the average American. This position on the list reflects the combined impact of various forms of debt accumulated by individuals and households across the state.
While specific details on the composition of Virginia’s average debt are not explicitly provided in the context, we know that mortgage debt typically constitutes the largest portion of household debt nationwide. The national average mortgage debt per borrower was $252,505 in Q3 2024, and mortgages represent 70% of total U.S. household debt. Given that where someone lives significantly influences their debt levels, particularly due to housing prices and the cost of living, it’s reasonable to infer that housing-related costs likely play a substantial role in Virginia’s elevated average debt figure. The dynamics of the state’s real estate market would heavily impact the size of mortgages taken on by residents.
Beyond mortgages, other debt types such as auto loans, credit cards, and student loans also contribute to the total average debt. The context provides national averages for these categories in Q3 2024 ($24,297 for auto loans, $6,730 for credit cards, and $35,208 for student loans). Although we lack the state-specific breakdown for Virginia, its ranking suggests that residents may carry higher balances across one or more of these categories, in addition to significant mortgage debt. The combination of these factors culminates in Virginia holding a notable position among states with higher-than-average debt per resident.
8. **Oregon**: Based on Experian data from the third quarter of 2024, Oregon ranks as the eighth state with the highest average debt per resident, standing at $123,821. This figure is considerably higher than the national average, indicating that Oregonians, on average, shoulder a greater financial burden than residents in many other parts of the country. This higher average debt points to significant financial commitments undertaken by the state’s population.
The cost of living is a key determinant in the amount of debt residents accumulate, particularly housing prices. While the context doesn’t provide specific average mortgage balances for Oregon, the fact that mortgage debt is the largest component of household debt nationally (70% of the total, with a Q3 2024 average of $252,505 per borrower) suggests it plays a major role in the overall debt picture in Oregon as well. States with higher housing costs typically see residents taking on larger mortgages, which would naturally contribute to a higher average total debt figure like the one observed in Oregon.
Furthermore, the accumulation of debt varies significantly by age. Nationally, debt tends to peak around middle age, with Generation X (44-59 years old) holding the highest average total debt and Millennials (28-43 years old) having the highest average mortgage debt. While this is a national trend, the age demographic makeup of Oregon could also influence the state’s average debt figure, reflecting the life stages and financial decisions of its population. Understanding the interplay of housing costs, various debt types, and demographic factors is essential to fully grasp why Oregon appears on this list.
9. **Idaho**: According to Experian data from the third quarter of 2024, Idaho’s average debt per resident was $122,152, placing it ninth among the states with the highest average debt. This figure is significantly above the national average, highlighting substantial financial obligations carried by residents throughout Idaho. This higher average reflects the collective debt landscape across mortgage loans, home equity lines of credit, auto loans, credit card debt, student loan debt, and other consumer debts.
As we’ve noted, mortgage debt is the dominant form of household debt in the U.S., accounting for 70% of the total. The national average mortgage balance per borrower was $252,505 in Q3 2024. While state-specific mortgage data for Idaho isn’t available in the context, the state’s position on this list strongly suggests that mortgage balances are likely a major driver of its high overall average debt. Rapid increases in home prices and interest rates nationwide since the pandemic have contributed to the rise in mortgage debt, a trend that could be particularly relevant in states experiencing population growth and increasing housing demand, potentially impacting Idaho’s figures.
The context also touches on how debt levels relate to credit scores. Consumers with excellent credit scores (800-850 FICO) tend to have the highest average total debt ($164,302 in Q3 2024), while those with lower scores tend to have less debt, partly because they may have less access to credit. The overall credit profile of Idaho residents could therefore also play a role in shaping the state’s average debt figure, as individuals with better credit may be more able to take on larger amounts of debt, including mortgages.
10. **Nevada**: Experian data from the third quarter of 2024 reveals that Nevada residents carried an average debt of $118,081, positioning the state as the tenth highest in average debt per resident. This figure exceeds the national average of $105,056, indicating that residents in Nevada face higher financial commitments on average compared to many other states. This debt includes various components, from mortgages to credit cards.
While the context does not provide a specific breakdown of debt types for Nevada, the general pattern across the U.S. shows that mortgage debt is the primary driver of total household debt. Nationally, mortgages made up 70% of total household debt in Q1 2025, and the average mortgage balance per borrower was $252,505 in Q3 2024. Given the role of housing costs in accumulated debt, the real estate market conditions in Nevada likely play a significant part in shaping its average debt figure.
It’s also worth noting the context mentions average credit card debt by state, although Nevada does not appear in the top 5 highest list. However, credit card debt is a significant concern nationwide, with the average American carrying $6,730 in Q3 2024. High credit utilization can negatively impact credit scores, making it harder to qualify for other loans or resulting in higher interest rates. For residents in states with higher overall debt like Nevada, managing various types of debt, including credit cards, is a critical aspect of financial health. The interplay of housing debt and consumer debt contributes to Nevada’s position on this list.
11. **Alaska**: Ranking as the eleventh state with the highest average debt per resident, Alaska had an average debt of $117,648 in the third quarter of 2024, according to Experian data. This amount is well above the national average, signifying that residents in Alaska typically manage a larger debt burden than is common across the United States. Examining the specific types of debt that contribute to this figure can provide deeper insight.
Notably, Alaska is explicitly listed among the states with the highest average credit card balances. According to TransUnion data from May 2025, Alaska had the highest average credit card debt at $7,572, compared to the national average credit card debt reported by Experian ($6,730 in Q3 2024). This higher-than-average credit card debt significantly contributes to the state’s overall position on the list of highest average total debt per resident. While credit card debt is a smaller component of total household debt nationally compared to mortgages, higher average balances like those seen in Alaska can add substantial financial pressure due to high interest rates (averaging 21.91% in Feb 2025 on accounts assessed interest).
In addition to elevated credit card balances, mortgage debt undoubtedly plays a significant role in Alaska’s overall average debt, consistent with national trends. Although specific average mortgage data for Alaska is not provided in the context, the fact that mortgages constitute the largest share of household debt nationwide means they are a major factor in Alaska’s debt profile. The combination of substantial mortgage obligations and notably high average credit card balances places Alaska among the states where residents carry a significant average debt load.
12. **Arizona**: Rounding out our list of states with the highest average debt per resident is Arizona, which recorded an average debt of $117,025 in the third quarter of 2024, based on Experian data. This figure comfortably exceeds the national average, indicating that residents in Arizona tend to carry greater financial obligations across various debt categories compared to the typical American. Arizona’s position as the twelfth state on this list reflects the cumulative effect of different types of debt held by its population.
Consistent with the national picture, mortgage debt is highly likely to be the largest component of the average debt in Arizona. The national average mortgage balance was $252,505 in Q3 2024, and mortgage debt accounts for 70% of total household debt. While specific average mortgage data for Arizona is not detailed in the context, the cost of living and housing prices in the state would heavily influence the size of mortgages taken by residents, contributing significantly to the overall average debt figure.
Beyond mortgages, other forms of debt, including auto loans, credit card debt, and student loans, also factor into the total. The context highlights the national averages for these debts. Successfully managing these various debt types is crucial for financial stability. For individuals in states like Arizona with higher overall average debt, strategic approaches to debt repayment, such as the debt snowball or debt avalanche methods, or considering consolidation options like balance transfer cards or personal loans (especially with a lower interest rate than existing debts), as mentioned in the context, can be particularly beneficial in gaining control over their financial obligations.
Understanding the average debt per resident in states like these provides valuable insight into the financial realities faced by many Americans. While these states show higher averages, the national landscape of debt is complex, with factors like age, credit score, and individual financial management playing significant roles. Whether dealing with high mortgage balances driven by housing costs, managing credit card debt, or navigating other loans, being aware of one’s own debt levels and exploring effective payoff strategies is key to financial well-being in any state.
