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What Percentage of Americans are Debt Free? Exploring the Reality of American Debt

Updated: Jul 27

Want to know what percentage of Americans are debt free? Read on to find out the current state of American debt.

What Percentage of Americans are Debt Free?

In a world where the cost of living is constantly on the rise, debt has become an inevitable reality for many Americans. Whether it’s student loans, credit card debt, or mortgage payments, many people are living paycheck to paycheck and struggling to keep up with their financial obligations. However, there are some who have managed to achieve financial freedom and are debt free. But what percentage of Americans fall into this category?

The State of American Debt

According to recent data from the Federal Reserve, the average American household carries $137,063 in debt, which includes mortgages, credit cards, and other loans. The breakdown of this debt includes an average mortgage debt of $208,185, credit card debt of $15,983, and student loan debt of $49,879 per borrower. In fact, the total consumer debt in the US has surpassed $14 trillion, which is a record high.

This staggering amount of debt has been a major source of stress and anxiety for many Americans, leading to a negative impact on their overall well-being. With the pandemic causing job losses and financial instability, the situation has only worsened.

What Percentage of Americans are Debt Free?

Unfortunately, the percentage of Americans who are debt free is relatively low. According to a survey by Credit Karma in 2020, only 16% of Americans reported having no debt at all. This means that a whopping 84% of Americans have some form of debt, whether it be student loans, credit card debt, mortgages, or other loans.

The same survey found that millennials and Gen Z were more likely to be debt free than their older counterparts, with 28% of millennials and 24% of Gen Z reporting no debt at all. On the other hand, only 8% of baby boomers reported being debt free.

It’s important to note that while being debt free is a great achievement, it’s not always feasible or realistic for everyone. Some debts, such as mortgages, are often seen as a necessary part of life, especially for those who want to own a home.

The reality of American debt is that the vast majority of Americans are in debt to some degree, with only a small percentage being debt free. The increasing cost of living, combined with the economic impact of the pandemic, has made it harder for many Americans to achieve financial freedom. However, there are resources available to help individuals manage their debt and work towards a debt-free future.

For more information on debt forgiveness and debt relief, check out is a debt forgiveness agency that aims to help individuals achieve financial freedom by buying and forgiving their debt. - Getting Americans Out of Debt

Disclaimer: This is not legal advice

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