Rising Consumer Debt in Three US States
National average debt climbs 3.7% to $139,659 as housing costs and interest rates squeeze household budgets across the country.
A new study from LendingTree indicates that average consumer debt across the United States rose by 3.7% between the third quarter of 2024 and the third quarter of 2025. The national average total debt increased from $134,495 to $139,659, reflecting a broader tightening of household finances driven by high housing prices, elevated interest rates, and ongoing inflation.
While the national figure shows a moderate increase, the data reveals significant regional disparities. Maryland recorded the largest surge in average total debt, rising 10.3% from $170,251 to $187,750. Nevada followed closely with an increase of nearly 10%, reaching an average consumer debt of $163,999. Idaho also experienced a sharp rise of 9.3%, with average consumer debt climbing to $161,941.
In contrast to the widespread growth, Missouri was the only state to record a decline in average consumer debt during the period, falling by 0.3%. The study further details that average mortgage balances increased in 45 states, while personal loan and credit card debts rose in 39 states, indicating a broad-based pressure on household balance sheets.
Matt Schulz, chief consumer finance analyst at LendingTree, noted that the complexity of the situation stems from stubborn inflation and a tough job market. Despite inflation moderating to 3.3% year-on-year as of March, mortgage rates remain well above levels seen between the Great Recession and the early years of the pandemic. Housing prices continue to sit near historic highs, compounding the strain on borrowers.
The economic pressure is evident in consumer sentiment, with a September 2025 survey by Achieve finding that 38% of consumers struggle to pay bills on time. Two-thirds of respondents stated their income is insufficient to cover spending, citing job losses or reduced income as the primary reason, followed by higher essential costs.
An anomaly in the data highlights the conflicting forces at play: Idaho recorded the fastest average real wage growth at 6.7% between July 2024 and June 2025, yet still saw a sharp rise in consumer debt. This suggests that even with wage growth, the cost of living and debt servicing remain formidable challenges for many households.
