What Debt Looks Like Across Income Levels

Core Insights - The total household debt in the U.S. has reached a record high of $18.59 trillion, indicating a concerning debt landscape [1] Group 1: Debt Distribution by Income Levels - 77.4% of U.S. families carry some form of debt, with an average debt of $80,200 among those indebted [2] - Lower-income households have smaller absolute debt amounts but face higher interest rates due to limited access to large loans [3] - Households in the lowest income decile hold credit card balances averaging 85% of their monthly income, the highest ratio among income groups [4] - Middle-income households are the most likely to carry credit card debt, with over 60% of upper-middle-income households maintaining revolving balances [4][5] - Higher-income households hold the largest debt balances but have the capital to manage this debt effectively, resulting in a median debt payment-to-income ratio of just 13.4% in 2022, the lowest on record [6][7]